Concentration of small manufacturers.. hurt.

Third troubled Deloitte client in months

Cockroaches everywhere in the kitchen. From today's SCMP.

Eric Ng 
Jun 26, 2012
      


Trony Solar is the third mainland private enterprise client of auditor Deloitte Touche Tohmatsu to have run into accounting disclosure troubles in three months.
Trading of children's wear retailer Boshiwa International's shares has been halted since March 15, after Deloitte resigned as its auditor, sending its share price down by over a third. It was listed in September 2010.




Trading of Daqing Dairy has also been suspended, since March 22, after Deloitte resigned, citing an acknowledgement by Daqing management that certain transactions were fraudulent and difficulties in accessing the local branch of one of its banks. It was listed 21 months ago.


In October, Deloitte quit as Real Gold Mining's auditor following several corporate governance breaches, citing the miner's failure to disclose information that was "highly material" to its 2010 financial statements, and saying its 2010 earnings report was not reliable. Real Gold was listed in February 2009, and trading has been halted since May last year.


A Deloitte China spokesman said the fact Boshiwa, Daqing and Trony had run into their own "unique" accounting difficulties was "a coincidence". He said they accounted for only a "minuscule proportion" of the firm's listed audit client portfoli...

Richly Field China Development Chairman Arrested

The Chairman makes the rookie mistake of crossing the border into HK...

"The board (the “Board”) of directors (the “Directors”) of Richly Field China Development Limited (the 
“Company”, and together with its subsidiaries, the “Group”) announces that in the afternoon of 24 April 
2012, it was informed that Mr. He Guang (“Mr. He”), the Chairman of the Company and an executive 
Director, was arrested by the Commercial Crime Bureau of the Hong Kong Police (“CCB”) in connection 
with an investigation into a suspected offence in relation to knowingly publishing a written statement or 
account of a company about its affairs, which is or maybe misleading, false or deceptive in a material 
particular under Section 21 of the Theft Ordinance (the “Investigation”). Mr. He has been released on 
bail and has not been charged. The Company was also required to provide certain financial information 
and documents of the Group to CCB in relation to the Investigation. Save as disclosed above, the 
Company is not aware of any other employees, directors or related parties of the Company having been 
requested to assist the Investigation."