Monday, December 19, 2011

Fook Woo (tkr: 923 HK) - Does this Sound Suspicious?

In a recent release (read here) dated 2nd December, 2011, Fook Woo Group announces:
In the course of preparing its interim results for the six months ended 30 September
2011, it has come to the attention of the board of directors of the Company (the
“Board”) on 25 November 2011 (after trading hours) that an amount of RMB 100
million was paid out by a subsidiary of the Company in September 2011 and the
Company has not been able to confirm the remittance with the recipient(s). On 29
November 2011, an equivalent amount was remitted to the Company’s bank account, the
source of which is yet to be ascertained.

In the meantime, there has been several resignations at the Board level.  This is to hoping their auditor, PWC, will take a closer look into the company (not holding my breath though).

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