Hall of Shame
China Lumena New Materials (67 HK)
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.
 Glaucus Research: China Lumena New Materials, 24 Mar 2014
 Emerson Analytics: Truth About China Lumena New Materials, 1 Apr 2014
China Lumena: Annual Report 2013