I hope they just come clean.
They‘ve brought more time with the appeal but they‘ll still have to present a 10K to be compliant to get relisted.
The only 10K that any respectable auditor will sign off on will be the equivalent of a forensic.
It appears that DTT was asking for at least something along those lines, and since the DTT specific concerns have been made public, presumably any decent auditor will want to see those DTT concerns addressed also.
If the CEO could not agree with DTT about addressing these issues, why will he do so now?
Is he now prepared to fess up to a smaller business, but one in which his shares are worth more than a pink business?
Dong and Lam resigned, making their disagreement to CEO attitude clear in their letters, and in terms of credibility and worldwide reputation, DTT wins hands down against this CEO in ‘who should I believe?’
The notion that DTT bailed on the company under pressure just doesn’t hold logic with me.
DTT is much bigger than shorts or Deloitte watch
DTT is much bigger than CCME or it’s concerns
DTT does not follow CCME/shorts/ China small caps – like retail investors do
There are justified, widespread concerns in this whole sector about the veracity of the whole sector, not just a number of businesses, DTT had every reason to want to dig deeper this year as should all auditors in this space be doing.
DTT was asking for more information on these issues for some time, it was the company’s responsibility to provide the requested information/address the concerns on time.
I don’t think any would have taken a lot of time to be addressed, such as verifying cash with bank head office etc.
The company failed to meet the DTT request which is why DTT waited as long as they could before finally pulling the pin on the Co. But it was CCME who failed DTT it seems to me.
And Dong and Lam resigned because of this upper management refusal to be transparent from the tone of their resignation letters.
So the way I see it with this appeal.
Either the CEO is hoping to find a ‘friendly’ auditor, or is now, after some reflection on what’s best for him or maybe professional advice that the markets just will no longer allow him to not be upfront, is prepared to restate to the actual reality of the business or maybe he’s just mean spiritedly misleading his investors right to the bitter end.
The way he has not been true to his word so far, makes me not discount the last possibility at all, it may be the zenaphobia is coming from the China end on this one.
AI
