There's some suspicion that all is not what it seems in terms of Abit and its financial performance. Stock of the company will be downgraded on the Taiwan Stock Exchange (TSE) to requiring full delivery. The reason? Questions are being asked with regard to its financial reports over the past three years, which might be bogus in some way.
Some doubts cast over the legitimacy of Abit financial affairs are as follows:
-Over 70% of Abit’s total import and export business in the first half of this year were conducted through seven Hong Kong-based companies, all of which were located at the same address, with a registered capital of just HK$2 each.
-The TSE also suspects that management at Abit might have embezzled company funds through the issuance of a euro convertible bond (ECB).
-A total NT$4.1 billion-worth of Abit’s import and export transactions in the January-June period was conducted without shipping documents.
Abit have so far declined to comment on the news, however they said that they would be preparing a statement on these issues later this week.