Oriental Century (ORIC SP)

Oriental Century was a China-based education company. Its former chairman and CEO Wang Yuean had in March 09 confessed to cooking the books for years and diverting money to a related party. A special audit by PWC uncovered falsified accounts, bank statements and student numbers, as well as various payments and receipts of unknown purposes.

The special audit found two sets of accounting books maintained by the group when it visited the group’s subsidiaries in China. The second set of accounts showed that for the last five years, the total revenue of the group came to RMB20m (S$4.2 m) and accumulated loss totalling RMB55m. These contrast with the reported total revenue of RMB328m and accumulated PAT of RMB173m. The actual group bank balances as at Dec 31, 2008 turned out to be RMB1.8m instead of the reported RMB234m. At the main subsidiary, Oriental Dragon Management Co Ltd (ODM), which derived management fees from Oriental Pearl College (OPC), it was found that management fees collected fell short of the reported sum by RMB122m.

The shares were suspended in march 2009 having fallen 92% from their peak. The company delisted in May 2011.

2007 OPM was 56%, RoPA a staggering 1229%

ISCA: Local Case: Oriental Century Ltd.

NUS: Dealing with Perception: A Look at Overseas-Listed Chinese Firms in Singapore, 6 Feb 2014

Oriental Century: Annual Report 2007

Oriental Century: Annual Report 2008

PWC: Announcement to Oriental Century Shareholders, 2009

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