Hall of Shame
China Lumena New Materials (67 HK)
China Lumena New Materials Corporation mines, processes,and manufactures natural thenardite products. The Company is also engaged in the manufacturing and sale of PPS products, which include PPS resin, PPS compounds and PPS fiber.
In Mar 2014, Glaucus Research published a report accusing Lumena of inflating sales and profitability, doctoring financials, and pointed out that the company may not be able to meet financial obligations as soon as in May. Evidence indicated that the company’s true profitability was 90% less than reported, and the sales numbers were so inflated that they would have to sell an average of 30 doses of laxatives every year to every human in China over the age of 14. 
Soon after, Emerson Analytics added in their report that one of its production facilities shows no sign of any ongoing operations, and another one was running at less than 10% utilisation. 
Trading has been suspended since Mar 2014. The company announced that it is unable to resume trading on the Hong Kong Stock Exchange.
China Lumena: Annual Report 2014