Chinese manufacturer of spray products Sunmart listed on the Singapore Stock Exchange in August 2007. The first sign of trouble occurred in July 2011 when an independent director resigned owing to management’s slow response to an SGX directive to protect cash and in protest at the suitability of a proposed independent director. In April 2012, the company announced that auditors Ernst & Young had been unable to verify certain balances and transactions involving cash, receivables, investments and loans relating to the FY11 financials. This resulted in the suspension of the company’s shares. A year later, in August 2013, the forensic report revealed that FY11 profit had been inflated by RMB22m, or 177%. Additionally, the company made an RMB76m loan to its largest shareholder which it should have sought shareholders’ approval for. The company was taken private by its CEO in November 2016.

Last updated August 2022.

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