April 27, 2024

• 

[THE INVESTOR] China Ocean Resources, a Hong Kong-based fisheries company, faces delisting by the Korea Exchange over its repeated false financial disclosures.

The company said on April 18 it has received a disclaimer audit opinion from its auditor Shinhan Accounting that could lead to its final delisting from the benchmark KOSPI depending on the results of the review. 

“We have not received any documentary evidence for some of the company’s cash flow and cannot conduct an appropriate audit of contingent liabilities and trials,” the auditor said in its report.

The bourse operator also issued a warning to investors about the audit disclaimer decision, saying the company hasn’t filed any objection.

The company’s shares have already been suspended from trading since April 4 following a disclosure inquiry into the market rumors that it could face a disclaimer audit opinion. On the day, the stocks closed at 1,000 won (US$0.87).

China Ocean Resources made its stock debut on KOSPI in 2009. The company has been pulled up in the past for false disclosures about its financial status. Its share price tumbled after trading was suspended for more than three months last year.

By Park Ga-young (gypark@heraldcorp.com)