There’s unlikely to be any quick turnaround in fortunes for bust Chinese shipyard JES International Holdings.
Auditors for the Singapore-listed shipbuilder described today “material uncertainties that may cast significant doubt” on the group’s ability to continue operating.
The auditors, BDO, also hit out at the scant information provided by JES.
“We were unable to obtain sufficient audit evidence to assess and ensure that there are no further liabilities required to be recorded in the group’s consolidated financial statements arising from the ongoing disputes and lawsuits between JEHI and its creditors, bankers and customers etc,” BDO stated.
The most recent figures available for JES show a net loss of RMB290.5m for the year 2014. Since then the yard has been embroiled in a financial scandal with founder Jin Xin accused of financial irregularities, at which point the Jin family removed many financial records.
Since last August, JES International has ceased operations and only retains a “skeletal staff” to run the group.
JES’s transparency failure comes on the day the Singapore Exchange publicly demanded listed entities in the Lion Republic to disclose more information, more regularly in the wake of the demise of Swiber Holdings.