Tianmei goes under as forensic accountant appointed as liquidator
Health & Biotech
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Tianmei Beverage Group is the latest Chinese ASX stock to go into liquidation.
Today, Greg Thiveos of Worrels Solvency & Forensic Accountants was appointed as liquidator.
ASIC appointed a liquidator because Tianmei failed to lodge an audited 2017 annual report, hadn’t had a company secretary since August 10 this year, failed to retain at least two directors who live in Australia, and “failed to address certain significant concerns raised by two separate auditors in relation to Tianmei’s financial records and transactions the company has entered into”.
It “failed to provide adequate explanations in relation to irregularities identified with bank account confirmations; and fails to hold regular board meetings.”
Its stock has been suspended from trading since March this year when a shareholder demanded they change auditors, and they subsequently were never able to deliver an audited full year report.
The last accounts Tianmei delivered — unaudited full year accounts for 2017 in February — showed a healthy $30m profit.
The ASX has had a raft of trouble with Chinese companies listing in Australia, which have then decimated investor holdings.
A series of companies, including Tianmei, have come unstuck after the ASX began questioning around 50 Aussie-listed companies with interests in China over potential difficulties in repatriating money back home.
Other Chinese stocks that have been removed from the ASX include Sino Australia Oil and Gas, a Chinese drilling services company which ASIC wound up when it discovered the chairman tried to transfer $7.5m to a bank account without disclosing the reasons.
Another is China Dairy, which was delisted in July after a series of extraordinary events including someone sending fake documents to the ASX saying its chairman and deputy chair quit.