Hall of Shame
China Minzhong (K2N SP)
China Minzhong Food Corporation Ltd. processes vegetables. The Company markets fresh vegetables domestically and processes vegetables by air-drying, freeze-drying, fresh-packing, and brining.
In Aug 2013, Glaucus Research published a report, accusing the company of fabricated sales, attempting to cover up and overstating capital expenditure. Minzhong's biggest customer was only incorporated 2 years after the company claimed to have sold to them; their second biggest customer recorded no revenues, no change in inventories, and was co-founded by Minzhong's chairman.
The company rebounded quickly and continued trading until it was acquired by a private company in Feb 2017.