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.
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