Hall of Shame

Consumer Staples

Tibet Water Resources Limited (1115 HK)

Year: 2017

Tibet Water was attacked by short-seller Iceberg Research in October 2017 alleging fraud. Two days later, short-seller Flaming Research joined the fray. Following the fraud allegations, financial performance started to deteriorate, culminating in a substantial impairment of its 40%-stake in distributor Great Wall 5100. It is possible that deteriorating performance and impairments represented the purging of faked profits from the financials. However, Tibet Water managed to hold on to its auditor, PwC, until December 2020 meaning that the fraud was never proven, althought it was most likely faking profits until FY18.

Last updated September 2021

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