China-Biotics listed in the US via a reverse takeover in August 2006. In August 2010, short-seller Citron Research published a report alleging that the company had inflated sales and profits. Eventually, this was picked up by the Chinese press which came to similar conclusions. In June 2011, BDO resigned after encountering discrepancies in its audit of FY11 financials (March year-end) which likely constituted illegal acts. This prompted a collapse in the company's share price and its subsequent de-listing. China-Biotics is a confirmed fraud.

Last updated December 2021

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