September 1 -- Zhejiang New Jialian Electronics (002188) received a notice from the Hangzhou Intermediate People’s Court on August 30, reports stcn.com, citing a company filing. Three shareholders have accused Jialian Electronics of falsifying its securities statements, and they have demanded the firm pay 43,200 yuan and legal fees. Jialian Electronics board chairman and share controller Ding Rentao promised he will compensate the company’s loss caused by this lawsuit.

The Zhejiang Financial Monitoring Office found Jialian Electronics to have violated principles of inventory measurement and revenue recognition and also concluded that the firm had made false statements of profit in its 2009 financial statements.

Pang Hao, independent director and member of Jialiang Electronics’ auditing committee, resigned this June. Internal auditing manager Pan Yushang resigned on August 28.

Zhejiang Guoda Group recently bought a large number of shares from Jialian Electronics’ shareholders, and it will become Jialian Electronics’ largest share holder, the source noted

Source:capitalvue