Martin Lee @ Sg
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More S-Chips Woes

The past week has seen more S-Chip companies make the headlines for the wrong reasons.

First, SGX ordered China Sky Chemical Fibre to appoint a special auditor to investigate some of the company’s financial dealings.

This was over some repair and maintenance costs of around S$15 million incurred in 2009 as well as some interested parties transactions with its independent director.

And then, special auditors KPMG reported that they were unable to complete their investigations of Sino Techfibre after the company’s employees in China refused to co-operate with them. They were refused access to certain computers as they contained records of transactions with government entities and thus were deemed to contain state secrets.

Even the Local Tax Bureau did not want to help KPMG.

But the story of the week that me and my friend were discussing had to be about the dead abalones at Oceanus.

Oceanus Group had announced a writedown of 642.6 million yuan on biological assets due to the death of 42 million abalones. Now, that is a lot of abalones (out of their stock of about 200 million abalones).

This was reported earlier in the month but there were further news on developments this week.

A Singapore team of seven to eight people have been sent to China to do a stock take of the remaining number of abalones. I wonder how long they will take to count the remaining abalones.

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1 comment
James says 7 years ago

That’s the problem when investors buy company stocks or shares & lock them up on long term. They always hope there are no cheats in the company management siphoning off the company’s funds.

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