Yuhe was a supplier of day-old chickens raised for meat production, or broilers in China. It listed via a reverse merger. A report by Geo Investing on June 13th 2011 claimed that YUII may have misappropriated $12.1m in the Dajiang acquisition (chicken farms) and had misled investors regarding the details surrounding that transaction. The auditor Child, Van Wagoner & Bradshaw, resigned on 23rd June 2011 due to management’s misrepresentation, failure to disclose material facts regarding certain acquisitions, off-balance sheet transactions. It also claimed that 2010 financial statements were not reliable.
Seeking Alpha: Yuhe International: Too Risky an Investment,16 Jun 2011
US District Court: Legal Document, 18 Oct 2013
Yuhe International: Annual Report 2009