Hall of Shame

Consumer Staples

Prince Frog International Holdings Ltd (1259 HK)

Year: 2013

Chinese personal care company Prince Frog listed on the Hong Kong Exchange (HKEx) in 2011. It was initially targeted by a Chinese blogger in May 2013 who questioned the company's market position and reported sales. This was followed by a report from short-seller Glaucus Research in October the same year. The company denied the report which failed to prompt any auditor or board resignations. As with many other companies accused of fraud, financial performance began to deteriorate shortly thereafter, resulting in losses from FY15 onwards. Our analysis of Prince Frog's FY12 financials suggest it had traits in line with past frauds. While the fraud accusations against Prince Frog were not proven, suspicions remain.

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