There are a number of reasons why this company is very fishy: 1....

There are a number of reasons why this company is very fishy:

1. I have tried to search CDC's final report through Baidu (a Chinese search engine similar to Google), and I have no luck of finding one. All listed companies financial report should be available to the public. However, what I did find was that some people posted some negative comments about CDC (ShangZhi YuLong Niu Ye LTD) and its parent company (CMIC which listed on American Security Exchange). Some people said this company was a Panzi Scheme.

2.Some people in the comment section said that they did not raise much capital. Therefore, it is unlikely to be a fraud. I would like to state some facts about CDC. When Shangzhi YuLong Niu Ye LTD was first acquired by CMIC in 2005, its registered capital was 1.9157 million Australian dollars. 11 years later, it raised 20 million Australian dollars on ASX and its equity value is $0.33c/share.

3. Company's reported revenue and net profit increased by 18.4% and 4.4% respectively. Where is the dividend? Why would this company retain such a large amount of cash? It probably doesn't have like many other Chinese companies that are listed overseas. If you are still not convinced, please read point 4.

4.CDC appointed an American based Chinese Audit firm to audit their financial report and audit fees are only $25000 USD. First of all, as a creditable auditor, he/she has to travel to the company's headquarter to review its transactions. ASX should require CDC to appoint Australian based Audit firm or Big 4 as their auditor.