Abstract: The stock price drop of China's green agriculture has attracted the attention of the market. The two financial data of China's green agriculture are all referring to authoritative departments. If it is true, the downward trend of its share price in the United States will continue.
Recently, the stock price drop of China Green Agriculture (NYSE:CGA) has attracted market attention. Senior accountant Qin Xuechang said in an interview with the "Securities Daily" reporter. The two financial data of China's green agriculture are all referring to authoritative departments. If it is true, the downward trend of its share price in the United States will continue.
It is understood that since September last year, the International Financial Research & Accounting Group has questioned the CGA. Since then, related people have written that the CGA's tax payment is doubtful and there is suspicion of tax evasion. Since then, the company's share price has continued to fall from US$12 at the end of August to around US$9. However, at the beginning of the New Year in 2011, a report from Mitchell stated that Shaanxi Dingtian Jinong Humic Acid Co., Ltd., a major holding subsidiary of CGA, stated in its report to the State Administration for Industry and Commerce of China that its total income in 2009 It was 56.034 million yuan, equivalent to approximately 8.343 million U.S. dollars, while the report submitted by the CGA to the U.S. Securities Exchange Commission and investors during the same period claimed that the company’s total revenue for the year reached US$41.78 million. After questioning, China's green agriculture stocks continued to plummet, dropping from more than 9 U.S. dollars on January 5 to a minimum of 7.28 U.S. dollars on January 7, and closing at 7.48 U.S. dollars. In just 3 trading days, its stock price fell 21%. .
In response to these queries, CGA President Li Tao said in an interview with the media: “I personally think that these short hedge funds may see our stock price rising steadily. They have not reached the goal and have resorted to another move. The company actually repeated the report four months ago and added some so-called investigations. There are many things that are not in line with reality. For example, we have acquired Gufeng, which they said was 48 million US dollars. We acquired Gufeng. It's part of the cash and a portion of the stock, which is calculated at the stock price at that time, which is a little more than 200 million. I don't know where their numbers are. They talk about our distributors and suppliers, and it's entirely nonsense."
Or will face class actions
It is understood that CGA is an organic fertilizer producer based in Xi'an. On March 9, 2009, it was formally listed on the NYSE Euronext Stock Exchange under the symbol “CGAâ€, becoming the NYSE Euronext Group in 2008. After the completion of the acquisition and integration of the National Stock Exchange, it was the first Chinese company to land on the exchange and it was also the first Chinese company listed on the NYSE Euronext Group in 2009. Its holding company is Shaanxi Dingtian Jinong Humic Acid Products Co., Ltd. (hereinafter referred to as “Dingtian Jinnongâ€). The company has the largest domestic humic acid fertilizer production line with full annual intelligent output capacity of over 55,000 tons and domestic humic acid. Industry-leading R&D laboratory. The “Jinong†brand products produced are rich in natural humic acids and various nutrients needed for crop growth and development. They are hormone-free, green and non-polluting. Through independent research and development, the company has formed a series of more than 100 products of the “Jinong†brand's three functional series (nutritional, functional, and regulating), which are sold to all regions except Hong Kong, Macao, Taiwan and Tibet. At the same time have been exported to the United States, Germany, India and other 13 countries and regions.
After the company's listing, President Li Tao once stated that in order to meet higher market standards, the company has invested a lot of resources in strengthening corporate governance and raising the level of supervision. However, less than two years have passed since the company was listed, CGA has encountered fraudulent performances and class actions. Although there are many such incidents in the United States, what will be the fate of such a young Chinese company going to the United States?
Xu Guangxun, the former Nasdaq chief representative in China, interviewed by the "Securities Daily" reporter, said that similar incidents of the CGA have occurred in the U.S. capital market. The SEC conducts random inspections of some companies to do routine enquiries and investigations every year. The comprehensive investigation is not only for Chinese companies but also for companies in other countries. When a company has a stock anomaly or has an unfavorable news event with investors, the SEC will supervise and inspect them. When the inquiry is satisfied, they will no longer investigate; if a crime is involved, the investigation will be initiated. However, this situation is rare.
As CGA's stock price continued to drop, on January 7th, CGA announced through its fully-owned Dingtian Jinong and Beijing Gufeng Chemical Products Co., Ltd. that Beijing Gufeng has been one of the largest domestic fertilizer traders in China. Zhongnong Group Holding Co., Ltd. signed a contract for exporting 165,000 tons of dibasic acid compound fertilizer to India. The voice of the listed company at this time did not know whether it would give investors confidence?
After the newspaper reporter and CGA company Ms. Deng communicated, they interviewed the company CFO Mr. Ren by email. Unfortunately, the emails sent by the reporters were all returned. No one knows what the company’s voice is about. The green agriculture of China, which was caught in a series of things such as fraud in performance, class litigation in the United States, and stock price crashes, has affected investors' hearts at every step.
The concept of Chinese stocks has been "hunted"
On September 15, 2010, UTA was allegedly fraudulent and the stock price plunged by more than 30%. On September 13, 2010, DYP was questioned by the original auditing firm Deloitte who questioned the company’s financial data. Deloitte was dismissed, and the share price of multi-printed stocks plunged by nearly 50% on the same day. The share price of Diversified Global Water (DGW), another stock of the Polytechnic Group, also plummeted by more than 40%. From May 26, 2009 to June 2010, Artis Solar (CSIQ) )'s financial statements, and the company’s predictions of business operations prospects were materially false and misleading. After the news came out, Altus Solar shares plunged; in July 2010, Muddy WatersResearch, a US-invested research company in Hong Kong, accused US securities trading. The (Amex)-listed Oriental Paper (ONP) has fraudulently lowered its rating to sell aggressively, with a target price of less than US$1. The company’s share price has fallen from around the previous US$8 to around US$4; September 2010 On the 2nd, West Blue Gas (CHNG) was sued by investors for concealing debt information. The lawsuit stated that West Blue Gas Company had concealed its existing 17.7 million U.S. dollar debts, resulting in significant losses for investors; September 9, 2010 Fuqi International (FUQI) because the file does not reach the filing requirements, received a summons US Securities and Exchange Commission, its shares fell nearly 50%.
Qin Xuechang stated that Chinese companies going overseas for listing differed from the accounting standards of domestic listed companies. Therefore, there will be some discrepancies in their financial statements. However, in any case, the general financial direction is convergence, and there are problems with individual companies listed in the United States. However, after all, the CGA company did not disclose the reasons for the disclosure of two different financial figures. However, as a listed company, it should take a positive attitude and reduce the losses caused to shareholders by such events.
On CGA's official website, there is such a statement written in the company's corporate culture: failure will come in inadvertently to the details, the results will be obtained in the tireless exploration of the details. The devil is in the details, and heaven is in the details. The future of CGA will be heaven or devil, let us wait and see.
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