Follow-up Report on China Household (SEHK:692)

A Complete Scam

Posted on 2017 Oct 6


Summary

Blazing Research is publishing follow-up report on China Household (“China Household”, SEHK:692). Credibility is of utmost importance to us. We never accuse any companies without sufficient and concrete evidences. To further prove that China Household has been fabricating its books since its backdoor listing, we have conducted extensive investigation in these few months and collected further evidences demonstrating that:

- China Household is closely connected with its major customers and suppliers. For example, its largest supplier is owned by the former network administrator of China Household and many of its major customers, including its largest customer from 2014 to 2016, are actually sharing the same address with China Household

- The identity of some brokerage account holders mentioned in our initial coverage are actually employees of China Household. We found that the driver of China Household managed to hold about HKD 60 mn worth of China Household’s stock

- China Household has been keeping two sets of books, which are submitted to auditor and local tax bureau respectively. Both sets of books have been included in the report and we found almost all of the cash disclosed on the auditor’s book disappeared on the book filed to local tax bureau


English Version: Download Full Report (PDF) View on Scribd
Chinese Version: Download Full Report (PDF) View on Scribd