Articles: Accounting problems

Tianyun (6836): PwC quits as auditor at board's request after problems with bank confirmations and possible "unauthorised transactions"Elite Partners adviserhips
Company announcement, 16-May-2022
They are replaced by Elite Partners CPA Ltd, whose track record of HKICPA disciplinary sanctions and returns to shareholders of clients after their appointment speaks for itself.
EcoGreen (2341): our auditor says our banks say our balances are missing 4 zeroes
Company announcement, 7-Apr-2022
Oops. Maybe not so sustainable after all, despite a "green and sustainable" award from the Government's HK Quality Assurance Agency in 2021.
Evergrande Property Services (6666): CNY13.4bn of our money disappeared in 2021
Company announcement, 22-Mar-2022
Or more precisely: in reviewing the 2021 results, "it was found" that "security for third party pledge guarantees has been enforced by the relevant banks". The obvious questions are: why was the Company providing security for third-party borrowings, who is/are the third party/parties, and who are the "relevant banks"?. Secondly, why did it take so long to disclose this loss?
SFC obtains DQs against ex-senior execs of Shandong Molong (0568) for faking accountsJudgment
SFC, 2-Mar-2021
Justice Linda Chan criticises the SFC for (1) producing 3 alternative sets of admitted facts on the gravity of the wrongdoing before deciding on the most serious one (knowingly causing the earnings inflation); (2) failing to advance any mitigating factors; and (3) producing 10 bundles of documents that were not needed.
SFC v Ernst & Young
HK Court of First Instance, 23-May-2014
Presentation to IFRS Regional Policy Forum
Webb-site founder David Webb is speaking in a panel session at the IFRS event in HK this afternoon. These are his slides. (5-Jun-2013)
Webb, other key business leaders interviewed by IFAC
International Federation of Accountants, 6-Aug-2010
See Theme 3: Business reporting through the lens of the investor.
Tack Fat: as clear as Mudd takes a close look at the latest accounts of garment maker Tack Fat (0928), and finds plenty to worry about. Amongst other issues, Tack Fat is fast approaching a 30-Sep expiry of an option to increase its stake in Mudd or lose the premium, and investors and the auditors do not have enough information on Mudd to reach a view. Meanwhile there was a previously undisclosed deposit at least 2 months before the latest $330m acquisition of XXESS. (6-Aug-2007)
Egana and Upbest
Following this week's charges by the ICAC against certain directors of Upbest (0335), looks at the connections between EganaGoldpfeil (0048) and Upbest, and we don't like what we see. There's a mixture of out-and-back profit-generating transactions, innovative accounting policies, investments in closed-end funds, interest-free "deposits", rolling promissory notes and yes, an aborted gas transaction in the PRC. Are we looking at the next Moulin here? (26-Jul-2007)
Ocean Grand's Shipwreck
By popular request, we give our comments on the Ocean Grand debacle. The warning signs of bad governance or worse were there for years, but few picked up on them. We conduct a detailed autopsy, and find plenty of material for regulators and police investigators to get their teeth into. We also look at the characters involved with the companies and what this says about the state of battle for shareholder rights in HK. (31-Jul-2006)
Toxic IPOs in HK
In this epic article, we take you through the IPOs of at least 14 listed companies, 3 of which have already led to criminal charges. We explain the inter-relationships between the companies, sponsors, lead managers, auditors and the INEDs. Before you buy another IPO, stop and read this article. (21-Mar-2005)
Cooking with Gas
We describe how Grand Field (0115) spent HK$63m on a 75% stake in a company which owned nothing other than a right to invest in a piped gas joint venture, which had lost its business license even before the acquisition was completed. One of the men behind this deal also features in our next story, on Kwong Hing (1131), so stay tuned! (4-Mar-2004)

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