Industry Recycling industry Founded 2000 | Headquarters Guangzhou, China Parent organization Wellrun Limited | |
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Type Privately owned company Area served People's Republic of China Key people Chairman: Mr. Chun Chi-wai Website China Metal Recycling (Holdings) Limited Subsidiaries Zhongshan Yatong Metal Materials Co., Ltd | ||
China metal recycling holdings limited case solution analysis thecasesolutions com
China Metal Recycling (Holdings) Limited (SEHK: 773) was a company that at one time claimed to be the largest recycler of scrap metal in Mainland China by revenue. Based in Guangzhou, Guangdong, it was mainly engaged in collecting scrap steel, scrap copper and other scrap metals and processing them using equipment to produce recycled scrap metals for its customers. Its recycling facilities were located in Guangdong, Jiangsu and Hong Kong. The company was wound up and de-listed after accounting fraud surfaced.
Contents
History
The company was established in 2000. The company was listed on the Hong Kong Stock Exchange in June 2009 with the IPO price of HK$5.15 per share. Its stock price was closed at HK$6.44 at the first trading day, 24% higher than its IPO price. On 17 November 2009, its price suddenly plunged 24%, the most since listing, as its Chief Financial Officer, Wong Hok-leung, resigned after saying he was denied information. Trading in the shares of the Company on the Stock Exchange was halted from 9:17 a.m. on 28 January 2013. American short-seller Glaucus Research Group said that "CMR purports to be the largest scrap metal recycling company in China. We believe this is a lie. Publicly accessible import data from the Chinese government suggests CMR is a blatant fraud that has deceived the market about the size of its business." Chun Chi Wai, the Chairman and Chief Executive Officer of the Company, announced that he had engaged legal advisers to initiate legal proceedings against Glaucus.
The Securities and Futures Commission won a court order in February 2015 to wind up the company, and the company was delisted from SEHK in December 2015 for "obtaining its initial listing by fraud."