S chips – Any audit issues on the following companies?

I believe most readers are increasingly worried on the recent spate of audit issues encompassing the S chips such as China Gaoxian, Hong wei, Hongxing etc. I have contacted some of the S chips companies’ management / Investor Relations regarding whether the auditors have signed off the financials.

Below are my findings.

Anchun – Likely to be signed in the couple of weeks. No major issues flagged out by auditors.

China Animal – Auditors have already signed off. Audited annual report already uploaded onto SGX Masnet.

China Taisan – According to CIMB research report, they mentioned that the auditors have already signed off the statements.

Eratat Lifestyle – Likely to be signed in the next 2-3 wks. No major issues flagged out by auditors.

Fuxing – Likely to be signed in the next few weeks. No major issues flagged out by auditors.

Hu An – Auditors have already signed off. Audited annual report already uploaded onto SGX Masnet.

Ziwo – Likely to be signed this week. No major issues flagged out by auditors.

Do note that this is done on a best effort basis and based on management / IR representation. If companies’ management deliberately sought to deceive, there is no 100% way in finding out.

Bottomline: If we invest in S chips, especially the small ones, this is the risk that we have to seriously consider in reaching our investment decision.

This is an amended version which I have sent out to clients recently.
Disclaimer
The information contained herein is the writer’s personal opinion and is provided to you for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. The information or opinions provided herein do not constitute an investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise. You may wish to seek advice from an independent financial adviser before making a commitment to purchase or invest in the investment product(s) mentioned herein. In the event that you choose not to do so, you should consider whether the investment product(s) mentioned herein are suitable for you. The writer will not, in any event, be liable to you for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials appended herein. The information and/or materials are provided “as is” without warranty of any kind, either express or implied.  In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials.

One thought on “S chips – Any audit issues on the following companies?

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