Agreed with Graeme, it may also be the 2 Chinese directors...

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FreemH

14 Posts.

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01/10/20

00:00

Post #: 47757161
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Originally posted by Neet$: ↑

Copy paste Graeme Newings latest:
PET made an extraordinary announcement this morning, which I am sure you have seen, that the two Chinese directors and major shareholders, Zhigang Zhang and Ningping Ma, have resigned from the board, effective immediately. There was none of the usual accompanying bumf to say what a good job they had done and to wish them the best for the future. There was none of that. And in the very next sentence in this brief announcement of three sentences, the company stated that ongoing investigations into accounting irregularities in China were continuing. It doesn’t take a genius to see that the resignations and the accounting irregularities are linked.The resignations, the suspension and the lengthy investigation all suggest to me that the accounting irregularities are very serious and not just some minor “greasing of the wheels” that is generally required to do business in China.Importantly, those two run BHZQ which has been instrumental indeed critical in getting business for PET within China. If they are pissed off with PET, doing business in China is going to become much more difficult. But perhaps they resigned as a matter of honour, given that irregularities occurred on their watch, but do not have anything against PET itself.Disappointing to say the least. Not just to me and other shareholders but also to the new management team who are doing their best under difficult circumstances.I do not know the nature of the irregularities nor whether the investigations will be completed in 6 days, 6 weeks or 6 months. The company is, quite properly, playing a very straight bat to all my questions

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Agreed with Graeme, it may also be the 2 Chinese directors couldn't work along with the new AU mgt team and then leave.

PET Price at posting: 24.5¢ Sentiment: Hold Disclosure: Not Held
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0 Great analysis

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