China-based smartphone maker Coolpad again delayed the release of its 2016 financial results citing outstanding audit issues, Reuters reported.
Coolpad delayed reporting its results a number of times because of audit problems since March, when the annual report was due. Trading of its shares have been suspended since then.
According to a filing to the Hong Kong Stock Exchange, the vendor said it needs more time to provide information requested by auditors regarding “rationale and business substances of various prepayments and/or loans made by the company as well as going concerns”, Reuters reported.
The company’s chairman Yueting Jia, who founded the LeEco group, is Coolpad’s largest shareholder with a 29 per cent stake.
Jia resigned in May as CEO of cash-strapped LeEco, but remains the company’s chairman. He acknowledged in November 2016 the company, which moved aggressively into smartphones, smart TVs and electric cars, was expanding “too fast” and its capital and resources were not keeping pace. A month later LeEco said it was planning to restructure its business following the suspension of trading of its shares on the Shenzhen Exchange.
According to Reuters, Coolpad received a letter from the Hong Kong exchange spelling out the conditions for its stock to resume trading, which included releasing the results, conducting investigations to address audit issues and disclosing relevant information so investors could appraise the firm’s position.
In May Coolpad released unaudited results showing a loss of HKD4.23 billion ($542 million) for 2016, from a profit of HKD2.3 billion profit in 2015.