Cogo listed on the NASDAQ through a reverse merger in 2004. It was initially attacked by a blogger on Seeking Alpha in July 2011 questioning corporate governance and deteriorating financials. This was followed up by short-seller Prescience Investment in August which published a report alluding to fraud. These reports, disappointing financial performance plus the company's decision to downgrade its listing status to Foreign Private Issuer, led to an 80% decline in the value of the company's shares between April and September 2011. In March 2012, Cogo's founder proposed that he acquire some of the company's assets for US$58m and then a second batch for US$60m in July 2013. In May 2015, Cogo reported that it was unable to submit its 20-F on time for 2014 financials. It is not clear what happened to the cash. Cogo's founder then re-listed these assets in Hong Kong as Cogobuy (400 HK) which was subsequently attacked by a short-seller alleging fraud. Cogo is an example of blatant corporate abuse but it is not clear if the company faked its profits.

Last updated September 2021

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