In March 2014, Chinese sportswear company, Flyke, asked for a suspension of its shares given that its independent auditors, Shinewing, could not complete the FY13 audit owing to inconsistent information provided by the company regarding its suppliers. Shinewing subsequently resigned in August. In September 2016, Flyke announced that the directors could not get access to the plants in China. Although the brothers Wenjian and Wenzu Lin had resigned from the Hong Kong holding company, they had not resigned from the Chinese subsidiaries and had disappeared. In November 2016, the results of an investigation revealed that cash balances were either empty or could not be traced whilst bank loans were higher than reported. The company was delisted in January 2021. Flyke was most likely faking profits and hiding the evidence in receivables and to a lesser degree cash balances. 

Last updated September 2021

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