Hall of Shame
China Fiber Optic Network System (3777 HK)
China Fiber Optic Network System Group Limited was a Hong Kong company that manufactures fiber optic patch cords. It listed on the HKEX in november 2011. The Company sells a range of fiber optic patch cords that are used in a variety of applications in the communications industry. China Fiber Optic Network System Group also produces connection and distribution products and equipment room accessories.
In Aug 2015, Emerson Analytics published a report accusing China Fiber Optic of exaggerating its revenue by fabricating sales, inflating average selling price, and lying about quality of products. It is estimated that its revenue was consitantly exaggerated by 4 to 10 times over 4 years.
The Hong Kong Stock Exchange suspended all dealings in the shares of the Company with effect from 9:00 a.m. on October 13, 2016. The SFC cited Rule 8 (1) of the Securities and Futures Rules, dealing with materially false, incomplete or misleading information, for the move.
The Company was de-listed by the HKEX in February 2019.
Emerson Analytics: China Fiber Optic - Shocking Lies, 7 Aug 2015
HK Stock Exchange: Suspension - 13 Oct 2016
China Fiber Optic: Annual Report 2013
China Fiber Optic: Annual Report 2014
China Fiber Optic: Annual Report 2015