Yonyuan's share price was suspended in August 2019 at the request of management following an 86% share price collapse in one day. It transpired that the flash crash was caused by the sale of shares relating to the controlling shareholders' margin loans. It is not clear what triggered the margin loan but it might relate to the company's inability to file 1H19 results, which was announced a few days later. The company's failure to file interim results resulted in a prologued share suspension which trigged a technical default. HSBC filed to have the company wound up in October 2019 and it was delisted in March 2021. In May 2021, the HKEx announced disciplinary action against six directors for failing to cooperate with an investigation and for failing to carry out their duties. We suspect the company was faking profits between FY16 and FY18, if not before.

Last updated September 2021

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