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Trony Solar Holdings Company Ltd (2468 HK)

Year: 2012

Having twice failed to list on the NYSE in 2009, Shenzhen-based manufacturer of solar photovoltaic modules, Trony Solar, listed on the Hong Kong Exchange in 2010. The IPO was not a success, with its shares beginning to decline almost immediately. In December 2011, the company issued the first of a number of profit warnings reportedly due to intense competition. In June 2012 (less than two years after listing), amidst mounting losses and director resignations, the company announced a delay in the publication of financials. Its shares would not recommence trading. It transpired that Trony's auditors had received an anonymous lead that most of its sales and profit had been made up. The forensic review released in December 2014 confirmed that this was the case. The perpetrators left Hong Kong and there were no prosecutions. Trony Solar is confirmed to have faked profits in FY10 and FY11. Its financials triggered our Fake Cash Flow Fraud model and Beneish's M-Score, suggesting traits in line with past frauds.

Last updated February 2022

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