Sinocoking Coal & Coke Chemical Industries, Inc. (CETC US)

Year: 2010

Sinocoking Coal and Coke Chemical Industries (Sinocoking) provided clean burning synthetic gas in China. It listed on the NASDAQ via a reverse merger in 2010. Shortly thereafter, short-seller Citron Research alleged that its profitability was way too high relative to peers. In September 2011, short-seller Alfred Little published a detailed report which seemed to demonstrate that Sinocoking's coal mines were non-existent. Following these reports, financial performance began to deteriorate, as so often happens once companies are accused of fraud; its share price collapsed. Between 2014 and 2016, the company went through a series of CFOs and small auditors. Finally, in April 2017, the company dismissed its latest auditor, KSP, and it was it was subsequently revealed that there was a disagreement over the financials. In October 2017, the company was delisted owing to its failure to file annual results. In other words, it went dark. Sinocoking likely faked its profits when it came to market in order to raise capital in 2010. 

Last updated November 2021

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