Euro-Asia (EUROAQ HK)

Euro-Asia was listed in Hong Kong in July 2001. It was a mainland China-based orchid grower. Its shares were suspended just over a year later in September 2002 shortly after publishing its interim results. Allegations suggested that it had inflated sales by about 20x. The majority of its sales were reported to be from exports, although claimed sales appeared to exceed aggregate official data[1]. The 2001 annual report[2] showed an exceptional performance: operating profit increased 172% year-on-year, operating profit margin was 47% and return on production assets was 61%. The auditor resigned in October 2002. The shares were ultimately delisted, and the IPO sponsor fined by the SFC.

[1] SCMP: Official statistics ridicule claims in Euro-Asia IPO, 22 Oct 2002

[2] Euro-Asia: Annual Report 2001

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