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From starving pigs to disappearing chairmen
02-05-2019, 07:04 PM.
Post: #1
From starving pigs to disappearing chairmen
From starving pigs to disappearing chairmen: Chinese companies offer some bizarre excuses for plunging profits, missed deadlines amid worst earnings season on record
* Chinese companies have come up with some bizarre explanations for their worst earnings season on record

Laura He   
Published: 6:00pm, 2 May, 2019

Earlier this week Kangmei Pharmaceutical, one of China’s biggest drugmakers, blamed an “accounting error” for overstating its cash holdings by an eyewatering 30 billion yuan (US$4.5 billion), making headlines around the world.

The staggering blunder, amid China’s worst corporate earnings season on record, sent the firm’s stocks and bonds plummeting and sounded alarm bells about the quality of auditing in one of the world’s fastest-growing markets.

But Kangmei is by no means alone in offering up surprising or downright bizarre explanations for plunging profits, irregular disclosures or failure to disclose at all.

Chuying Agro-Pastoral, one of the country’s biggest pig farmers, needed an excuse when it reported annual losses of 3.9 billion yuan, more than double its previous estimate. It said it had run out of money to buy food for the pigs during last year’s liquidity crunch.

This had led to “many unexpected deaths of pigs”, Chuying said in a statement, without giving a specific figure. The company’s annual pig production is around 3 million, according to a previous estimate.

According to an estimate by the industry website zhujiage.com.cn (literally pigprice.com.cn in English), roughly 2.7 million of Chuying’s pigs would have had to succumb to starvation for it to suffer that magnitude of loss.

Shanghai Zhongyida, a Shanghai-listed machinery manufacturer, was one of five companies that failed to deliver their annual reports before the April 30 deadline.

The excuse offered by Shanghai Zhongyida was that it had been unable to produce its report because all the senior executives, including the chairman, were missing and the business licence, financial books, official seals had vanished.

Some firms were brutally honest about their failure to produce the necessary documents.

Xinjiang Yilu Wanyuan Industrial Investment said it had missed the deadline because it takes too much time to enter and proofread the data.

Chengdu Huaze Cobalt and Nickel Material, a repeat offender, said it had hired an accounting firm to handle its annual results, but had not paid the auditing fees. It marked the second straight year Chengdu Huaze has used the same excuse for failing to disclose on time.

An inability to pay for the auditing work was a common theme.

Changsheng Bio-technology, the vaccine maker embroiled in a rabies scandal last year, said the court had frozen all of its bank accounts since last July, leaving it with no money to hire an accounting firm to audit its reports.

Tanac Automation, a Shenzhen-listed machinery equipment maker, took an honest approach when it reported some unusual figures earlier this week.

“I can’t guarantee the report is authentic, real, and complete, because it contains false statements. I suggest investors pay special attention to it,” Gong Lunyong, a board director, said in the company’s annual report for 2018 and again in the first quarter report for 2019. He said the “false statements” were related to the financial figures about a key subsidiary of the company.

More details in https://www.scmp.com/business/china-busi...nies-offer
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03-05-2019, 04:39 PM.
Post: #2
RE: From starving pigs to disappearing chairmen
All sounds too familiar from S-chips from a few years ago - if on a bigger scale. Starving pigs is a new one to me, though.

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03-05-2019, 09:51 PM.
Post: #3
RE: From starving pigs to disappearing chairmen
iirc, financial records could be destroyed in an unfortunate, but timely, factory fire.

In another case, the company vehicle transporting financial records could go missing. The vehicle, together with the financial records in the vehicle, was never to be found again.

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04-05-2019, 08:12 AM.
Post: #4
RE: From starving pigs to disappearing chairmen
I like the starving pigs, there is also the soup river joke,
=========== Signature ===========
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 

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04-05-2019, 10:17 AM. (This post was last modified: 04-05-2019, 10:19 AM by Temperament.)
Post: #5
RE: From starving pigs to disappearing chairmen
AH..............S-CHIPS(CHEATS).

Knowing at that time was quite dangerous but still went in very little in the beginning because our local banks were in too ma.

Then slowly didn't know what happened to me go punting one S-Cheats to the tune of 30 to 50K(aka with money made from the market is "FOC Money" ma-gamblers' logic? Die Liu lol)

Didn't know how or what happened, managed to pull back about 20K to 30K.

i think total loss in S-CHEATS was still about 30 to 35K.

Till this day i still have some S-CHIPS.

NB:
ALL $ IS ESTIMATED ONLY (TOO LAZY TO CHECK RECORDS BUT WON'T BE THAT INACCURATE).

Ha! Ha!

How nice if i have used this amount of money and follow BW's insider news player.

Would have made a lot of money then?

Charlie Brown speaking above.
=========== Signature ===========
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.

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04-05-2019, 11:18 AM.
Post: #6
RE: From starving pigs to disappearing chairmen
Price of entertainment I Guess?
=========== Signature ===========
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 

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04-05-2019, 11:36 AM.
Post: #7
RE: From starving pigs to disappearing chairmen
No lah!

It was more K too hoh but i KK then.

i think at that time itchy fingers plus "FOC" money ma.

People can trade, so can i.

It's O. K. no mistakes, no lessons learn.

If procedure or process is O. K. just rinse and repeat lol.
=========== Signature ===========
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.

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22-09-2019, 12:59 AM.
Post: #8
RE: From starving pigs to disappearing chairmen
The reason why China stock market is not ready yet for a broad based bull rise is not because of trade war. The reasons are primarily

1. Renminbi is not sufficiently internationalized yet.
2. The stock market does not yet have a good delisting system to act as a "purge" for crap companies. Obviously there are many crap companies, but we don't see many removed from the board unlike in USA. Before that is done, no broad base index bull market.

Fortunately, we are seeing that the authority seems to realise the problem and is starting to resolve the second issue above. RMB will get more internationalized. We are seeing probably in 2 years, the broad base chinese market will be ready.

In the meantime, a small group of future core high tech stocks have already started their stealth bull market in advance of the broad market, we think.

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