Thursday 28 Mar 2024
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KUALA LUMPUR (April 26): Shares of China Ouhua Winery Holdings Ltd fell 6.67% at mid-morning today after its external auditor Messrs UHY Lee Seng Chan & Co has expressed a qualified opinion on the group's financial statements for the financial year ended Dec 31, 2017 (FY17).

The auditor said it was unable to obtain sufficient appropriate audit evidence on the extent of recoverability of the RMB118.8 million deposits that were used for a contract to purchase land and property in China.

At 9.55am, China Ouhua fell 0.5 sen to 7 sen with 580,000 shares done.

The deposit is about 90% of the total cash consideration of RMB132 million, which was made to Huangwu Subdistrict Office, Zhifu District, Yantai City in China, when the group entered into a contract to purchase land, buildings and ancillary facilities, including 320 KVA power distribution equipment, water supply systems, roads surrounding the factory and the enclosing wall.

 

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