Food company Zhou Hei Ya listed on the Hong Kong Exchange (HKEx) in November 2016. In March 2019, it was attacked by short-seller Emerson Analytics alleging that sales and profits had been faked. The company denied the allegations and managed to publish audited FY18 financials a few weeks later without incident. As such, the allegations remain unproven. However, in August, the company issued a profit warning and then replaced both its CFO and CEO. Its FY18 financials triggered Beneish's M-Score owing to deteriorating receivables which opens up the possibility that the company was overly aggressive in recognising profits. 

Last updated October 2021

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