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This May Be The Greatest "Explanation" Ever For Cooking The Company's Books
According to its website, Beijing-based China Animal Healthcare "is a leading animal drug manufacturer focusing on the manufacture, sale and distribution of compound chemical drugs (comprising powdered drugs and injection drugs) and biological drugs (comprising Mandatory Vaccines and non-Mandatory Vaccines) for poultry and livestock in the PRC."
It adds that "as a value-added service, we provide technical and support services such as farming techniques and methodologies and impart knowledge relating to animal health and treatment of animal diseases to both select retailers who meet their sales target and retailers with sales potential."
It almost certainly does none of that; instead the company is merely the latest run off the mill Chinese corporate fraud, although this one is truly hilarious.
More to the point, the publicly traded, or rather not publicly traded company, has had its shares - which quadrupled from mid 2013 to late 2014 - suspended since March 30, pending the release of its still-undisclosed financial results for 2014.
To those hoping for a lift to the stock trading suspension, or a presentation of the financial results, we have bad news: both will never happen.
As the WSJ reports, in September accounting firm Deloitte Touche Tohmatsu resigned as its auditor, saying the firm alleged misconduct by a China Animal Healthcare employee and that the two firms disagreed on bank balances.
Then in October, the company announced that local authorities in Hebei province revoked some of its production permits and manufacturing certificates over local safety and environmental concerns. They also asked that the company relocate some facilities away from residential areas.
In short: the company's business and fraudulent operations were in freefall, the management team is likely facing arrest or worse, and as such the opportunity cost to come up with absolutely ridiculous stories to justify what will emerge as corporate fraud, is low.
So low in fact, that the result was nothing short of today's, if not this year's, most entertaining story of corporate fraud and may enter the history books as the most ridiculous official explanation for why it was cooking its financials.
The "explanation", as it turns out, would make even the IRS' Lois Lerner blush.
Fast forward to Monday when, as @WallStCynic points out, China Animal Healthcare said in a statement to the Hong Kong stock exchange that a truck loaded with four years’ worth of its original financial documents was on its way to Beijing. However, while the truck driver was taking a lunch break, the truck was stolen. One week later the truck was found... but the four years of financial documents were gone.

A driver sits in his truck in Hebei province, China. Bloomberg News
“The possibility of finding the Lost Documents is not high,” the company said in the filing, conveniently adding that local police told them such thefts were common in Qingyuan.
And that's how the only set of the company's "original financial documents" disappeared forever.
* * *
That was the summary. The details, as laid out in the full filing, have to be read ideally in as deadpan a voice as possible, to be believed. The full excerpt from the linked filing follows:
The board (the “Board”) of directors (the “Directors”) of the Company wishes to inform the shareholders of the Company (the “Shareholders”) that on 4 December 2015, a truck of the Group (the “Truck”) loaded with, among other things, all original financial documents of the Group for the four financial years ended 31 December 2014 and for the current year (the “Lost Documents”) were stolen in the Qingyuan District of Baoding City, Hubei Province, China while the truck driver was taking a lunch break on his journey to transport the Lost Documents back to the Group's head office in Beijing (the “Incident”).
The Lost Documents were originally stored in the Group's office in Shijiazhuang, being the document storage centre of the Group. On 3 December, the Group made arrangements to transport the Lost Documents back to the Group's head office in Beijing for collation in order to facilitate, among other things, the Forensic Investigation. At around noon of the same day, the Truck broke down and was towed to a car repair garage in Qingyuan District for repair. On 4 December at around 11:30 a.m., the driver of the Truck picked up the Truck from the garage after repair and went for lunch at a nearby restaurant. The Truck driver discovered after lunch that the Truck was stolen.
Immediately after the Incident took place, the Group made a report to the local public security bureau and sent staff to search for the Truck in the direction the Truck had gone according to the road monitoring system of the local public security bureau. Given the gravity of the Incident, the Group convened a meeting on 5 December 2015 with the driver of the Truck and other relevant personnel of the Group to inquire further into the Incident, as well as set up a special investigation group (the “SIG”) accountable to the Board which is headed by Mr. Li Jun, an executive Director, to (i) investigate into the Incident, (ii) maintain close contact with the local public security bureau to search for the Truck, and (iii) confirm the list of Lost Documents and follow up on this matter.
Based on the findings of the investigation by the SIG, no suspicious person has been identified in the Incident. According to the local public security bureau, thefts such as the Incident are common occurrence in the Qingyuan District.
On 12 December 2015, the Company was notified by the local public security bureau that the Truck was found but not the Lost Documents. As at the date of this announcement, although the possibility of finding the Lost Documents is not high, the Group has nonetheless deployed all possible resources in search of the Lost Documents. Since the occurrence of the Incident, the finance team of the Group has been actively inquiring from different sources to retrieve as many copies of the Lost Documents as possible in order to minimise the impact of the Lost Documents. At the same time, the management of the Company has communicated to the Forensic Accountant on the Lost Documents, so as to minimize the impact on their work. Further investigation by the SIG of the Incident is currently in progress. The Company will publish further announcement(s) to update the Shareholders when there is further development on the Incident.
We eagerly await comparable the-truck-with-all-the-financial-documents-was-stolen excuses (the "excuse") to emerge in the US, once the stock market tide finally goes out.
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The dog ate Hilary Clinton's e-mails then stole this truck.
The dog stole the truck transporting Hillary Clinton's emails. The truck was found afterwards but the emails were gone. According to the local public security bureau, dog thefts such as the incident are common occurrence.
lol
Speaking of China... ;-)
There’s an interesting article in The European Union Times:
Obama’s “Worst Nightmare” Realized As Chinese Troops Flood Into Syria
In what a new Ministry of Defense (MoD) report circulating in the Kremlin today is describing as President Barack Obama’s “worst nightmare”, the Ministry of National Defense (MoND) of the People’s Republic of China has secured the permission of the Syria Arab Republic to begin “flooding” into the Levant War Zone up to 5,000 of its most elite military forces, and which will first include the feared Shenyang Military Region “Siberian Tiger” Special Forces and Lanzhou Military Region “Night Tiger” Special Forces Units.
It would be lovely to watch the Crouching Tiger going “Crazy-ass Monkey” in Syria! ;-)
Looney
Hitlery reads the story, then furiously bitch-slaps Huma across the face..."Bitch, why didn't you think of that before the f@cking Chinese did!!??" ;-)
Sounds like Trump is running this company?
Documentary on Adam Lanza, Sandy Hook Shooter Features Investigators Harrassed Over Newtown Work
I would have believed them if they said they sent the documents by boat and the boat sank but I'm not buying the stolen truck story.
Guess you don't comprehend just how much financial docs fetch on the black market! WTF, just WHO in China is believin' any of this??
More like "The truck containing Secretary Clinton's E-Mails was found, dead, on the side of the road without any of the E-Mails inside. The truck had a bullet hole in the back of its head, its axles chained and steering wheel clubbed, - officials have deemed it as an apparent suicide. Secretary Clinton's office released a statement expressing remorse over the tragedy, and sympathy for the manufacturer."
Building #7 was pulled.
Building #7 held all the FBI and CIA documents and all was destroyed in 9/11
the chinese copy everything from the american's, even ridiculous lies.
Valeant, then Biovail, tried this truck snafu 12 years ago, this is another copy.
That dog ate my tax filings, all the way back to '06.
I was watching you on my webcam and I was thinking "man, boattrash really has a nice tight ass". Can you get up again in front of the camera so we all can see?
Good trick, especially since my cam is taped over.
If looking at another man's hairy ass is what turns you on though, maybe you can learn to use that interweb thingy (what with all your omnipotent wisdom and such). Sure you can see some man-ass there, providing you get the cock & balls outta your face first.
Sincerely,
Boattrash
A truck? I was expecting to read about an unfortunate boating accident.
Looking at that Bloomberg picture of a truck driver, it seems legit to me.
I think I remember seeing that dude at Sandy Hook & the Boston Marathon.
israel joos will stoop to any level to make some joo bucks.
It sounds like the same breed of dog that keeps stealing boxes of straight ticket Democrat ballots and hiding them in the trunks of cars, only the ballots are magically rediscovered just in time for the recount.
Well, it's not like just anyone can get the Diebold password, ya know. Otherwise, Anonymous would've already elected Marblecake.
Also, the game.
Exactly. People are pretty stupid if they believe "documents" are written on paper and driven around in a truck. What, are they stuck in the 50's?
the dog was later found hanged by the door of one of Bill's exes to insure her compliance with reasonable requests
Replace the word "Truck" with "Gold" and we'll all be hearing a very similar corporate (government) story soon.
I'll bet the stock holders wished they had thier own CEDE.
Me thinks the truck driver had a very very nice Christmas.
Until he disappeared. No loose ends allowed.
The same thing used to happen to my algebra homework.
how ironic there are no backup hard drives or copiers in china.
Obviously no scanners, email, or even fax machines.
This is not the Great Leap Forward you were looking for. He can go about his business. Move along now.
The back ups were in a building that the BBC said had collapsed while it was still visible in the background.
And what are OTC stocks again?
Go to Penny Schloks dot com. I go there for laughs. the last one I looked at went from .85 cents to one cent in less than a year.
Safer than keeping electronic copies of all those financials....imagine if they were hacked!
Wait wait wait.... a Chinese company used a Japanese accounting firm? That should have been the red flag.
China is a red flag....literally
ritterrary!
I've got no truck with this...
We are all familiar with trucks as carts and road vehicles, but that's not what's being referred to in 'have no truck with'. This 'truck' is the early French word 'troque', which meant 'an exchange; a barter' and came into Middle English as 'truke'. The first known record of truke is the Vintner's Company Charter in the Anglo-Norman text of the Patent Roll of Edward III, 1364. This relates to a transaction for some wine which was to be done 'by truke, or by exchange'.
In England, a truck is a 'lorry'
In Japan lorry is rorry!
(another duplicate)
In England a Rorry is a guy you pick-up at a gay bar.
& a fag is a cigarette
In the U.S. a fag is the president.
In England, if you see a sign saying Dodge Trucks it's just good advice!
No matter what/which 'worse case scenario' you can imagine, it's worsererer out there in never never land. Anyone for tiffin? I'm hungry!
In China suspicious company presidents may dissappear and undergo enhanced interrogation until the missing unicorns are found.
On the subject of "They're all crooks..." -
Just went to see "The Big Short". For ZHers, a
MUST SEE
MUST SEE
MUST SEE
MUST SEE
MUST SEE
LMFAO!!! Chinese drug company???
I need to get my prescription of panda bear toenails filled. WTF??? My bengal tiger eyelashes prescription is running low too. FAWK!!!
Jon Corzine's explanation for the whereabouts of customers' segregated accounts is still the winner.
"There's no saying where the money went - it was just vaporized."
"Vaporized?"
"Yes, vaporized."
Honestly, Teacher, the dragon ate my homework!
I've got the "documents". These are blank pages. I gave them to the school kids so that they can do home work.
Ho Lee Fuk
Sum Ting Wong
Wei Too Lo
Yu Sik Fuk!
Were they running an all cash business? Wouldn't a bank have the deposits and withdrawals and current balance of their accounts?
Unfortunately the thieves transferred the load to another truck which was last spotted traveling north in a heavy convoy just a few clicks south of the Turkish border, and than there was a fire.
Well, teacher, I know this sounds far-fetched but:
A Boeing 757 flew in through the door of my house last night,
exploded and vaporized my dog, the neighbors AND my homework.
a bigger news story is chinese animal cloning factories: http://www.theguardian.com/world/2015/nov/24/worlds-largest-animal-cloni...