Zungui Haixi Corporation designs, develops, manufactures, distributes, and markets athletic footwear, apparel and accessories, and casual footwear. The Company retails its products through its own stores and through distributors.
During the 2011 audit, Ernst & Young experienced irregularities when conducting bank confirmation procedures for Zungui’s principal operating bank account held with the Agricultural Bank of China. Subsequent investigation discovered fake accounts receivables, payables, distributors and suppliers in order to inflate revenues.
In 2010, RoPA was 757%.
OSC: Statement of Allegations, 24 Jun 2013
Zungui Haixi: Annual Report 2010