China Ouhua FY2017 audited accounts qualified by auditor

PETALING JAYA: China Ouhua Winery Holdings Ltd's external auditor Messrs UHY Lee Seng Chan & Co have issued a qualified opinion on its audited financial statements for the financial year ended December 31, 2017, after it was unable to determine the recoverability of a RMB118.8 million (RM73.2 million) deposit the company paid for a contract to purchase land and property in China.
The payment of 90% of the purchase consideration of RMB132 million was made to Huangwu Subdistrict Office, Zhifu District, Yantai City, China on December 17, 2013.
The contract was to purchase land, buildings and ancillary facilities including 320KVA power distribution equipment, water supply system, roads surrounding the factory and enclosing wall.
The external auditor was unable to determine whether any adjustments to the carrying amount of deposits as at December 31, 2017 were necessary.
The stock closed unchanged at 7.5 sen.