Chinese steel manufacturer Tiangong listed on the Hong Kong Exchange in July 2007. In February 2022, the company was targeted by short-seller Emerson Analytics alleging that it was faking production numbers, sales and profits. Our analysis of its financials suggest traits similar to past frauds in that the company is highly profitable and yet fails to pay much of a dividend. Working capital and cash-like assets continue to accumulate on its balance sheet whilst the company raises more capital. Given that KPMG signed-off on Tiangong's financials shortly after the short-seller's report and that there were no major resignations, the fraud allegations remain unproven.

Last updated August 2022.

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