China Metal Resources Utilization (CMRU) originally listed in New York as Gushan Environmental Energy in 2007. However, the company was privatised in October 2012 at 96% below the IPO price. It then changed its name to CMRU and listed in Hong Kong in 2014. In May 2020, CMRU was targeted by short-seller Hindenburg Research which highlighted the company's questionable track record and alleged that it was close to insolvency. In June, CMRU announced that the company's chairman had sold a 10% stake in March during the blackout period without obtaining the designated director’s approval. Shortly thereafter, the company's share price collapsed 80% in a day for unknown reasons (although likely relating to a forced sale by brokers). In August, CMRU finally came clean as to why it had been unable to publish audited financials. It transpired that the delay was not only due to COVID restrictions but also because it auditors had concerns about it being a going concern, amongst other issues. The insolvency allegations against CMRU were, therefore, validated.

Last updated October 2021

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