Chinese snack food and beverage company Dali Foods listed on the Hong Kong Exchange in November 2015. It was attacked by short-seller GeoInvesting in June 2017 alleging fraud. GeoInvesting appeared to imply that Dali was inflating profits by keeping costs, such as advertising, off balance sheet. Meanwhile, a tax discrepancy seemed to suggest that reported profits were inflated whilst over-stated capex implied that cash was being siphoned off. However, the fraud allegations were not proven in that there were no resignations and its auditor, Ernst & Young, continued to sign off on its financials.

Last updated April 2022

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