Sihuan Pharmaceutical 460

[investar]

Halted... was one of the more promising Chinese pharma cos.

[winston]

not vested

<Post Resumption>SIHUAN PHARM Collapses 50% after Trading Resumption

SIHUAN PHARM (00460.HK) fulfilled the conditions for trading resumption.

The resumption conditions include engaging an independent forensic specialist acceptable to the Stock Exchange to conduct a forensic investigation on the allegations.

After the investigation, the Audit Committee rejected any allegations of false inflation of the amount of sales or false inflation of the sales revenue or profits and considered that the allegation of commercial bribery by distributors is not substantiated.

Meanwhile, the Internal Control Consultant could find no material internal control weaknesses have been identified in its review.

The company is still carrying out the remedial measures so the 2014 consolidated financial statements have been properly addressed and dealt with and therefore it did not expect a similar disclaimer opinion will recur on the 2015 consolidated financial statements.

After a trading suspension for 11 months, the stock followed the downtrend during the period. It once collapsed nearly 68% and hit the trough at $1.41, marking the low for nearly 3.5 years.

It last stood at $2.2, plunging 50%, on surging volume of 718 million shares, involving $1.39 billion.

Source: AAStocks Financial News