Hi all.. I think the company really have some big issue on the $$$ being mis-used somewhere by their subsidary company. If not why Ernst & Young can't concile the balance. And now the Company Audit committee appoint Special Audit to relook into their Book, does it meant Ernst & Young is too stricted with their checking? Hopefully Priceswaterhouse can give a better review on their book..
The AGM re-schedule to end Jun . So meaning the Audit committee have to close the 2010 book by then to present to Shareholders their finding..If every things go smoothly , the counter will resume trading by then I suppose. Gao Xian management not much changes till now . CEO &CFO logically have to take the blame n step down and not run away.but I think they already pocket alot of the fund by selling the holding in the company. It's a blessing that their operations is still up and running.. hope the new management can provide more detail info's to the auditor to get the acoount straighten up asap and resume trading. Otherwise all $$$ stuck there..
Even it resume trading in the future, the price will be bad i think.. anyone have any experience on this kind of counter which resume trading after suspension ? Can share !
I bought china aviation oil years ago, when it it hit by the oil trading scandal and goes belly up. They have to restructure their debts to survive. Not actually the same case, but I got back 30 % of what was invested, which i thought was very lucky le.
The suspension took about 1 year before they resume, and the shares price rocketed when it resumes, due to new investment by BP and temeask, however, as 5 shares are consolidate into 1, I still suffer heavy losses. I have already write off that investment, so whatever i got back was a bonus to me.
So, it might not resume trading by June, if more dirty linen is uncovered, especially if the authorities need to be call in...
Fujian Zhenyuan has complete an special audit too, althought its shares was not suspended, and it hasn't been able to recover since, so yes, the future is bleak even if trading resumes.
Those buggers at Gaoxian cooked the books big-time. Instead of RMB1.1 billion in cash, as stated on the financial statement, they actually had about $MB100 m. Just one-tenth!
Cao Xiang Bin, the (former) CEO, deserves to be cooked alive!
so fast already spent 300 million paying for construction of new building.. fishy.. really fishy
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[garl 30-06-2011]:
Those buggers at Gaoxian cooked the books big-time. Instead of RMB1.1 billion in cash, as stated on the financial statement, they actually had about $MB100 m. Just one-tenth!
Cao Xiang Bin, the (former) CEO, deserves to be cooked alive!
1. Company has outstanding debts of 205M RMB.
2. Company has cash of 700M RMB in cash.
So the company is not insolvent. Luckily, it was caught only after its Korean IPO which raised about 1B RMB. Without this 1B, it would have near zero cash and 200M in liabilities.
Right now about 1B is missing from the accounts. This 1B was reported in Dec 2010 accounts but does not seem to exist.
When unsuspended the stock will trade betwee 5 to 12 cents.
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