Shirble Department Store has enhanced internal controls after its auditor found management loopholes in its sourcing and property acquiring process, which led to a delay in announcing its financial results.
The Shenzhen-based retailer yesterday announced results for the past financial year to December, with net profit plunging 64 per cent to 71.6 million yuan (HK$89.1 million) because of increased labour and rental costs, and one-off losses.
Turnover grew 12 per cent to 1.43 billion yuan.
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The company suspended stock trading on March 29 and
postponed issuing its annual results three times between March and June, as its auditor Moore Stephens needed more time to investigate a number of transactions.
"Following its investigation and the review of the Moore Stephens review report, the [company's] audit committee is of the view the group had various internal control weaknesses," said Yang Xiangbo, the chairman and acting chief executive of the company.
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The accounting firm said the company's internal control was inadequate when it bought and decorated two properties in Meizhou and Haifeng, in Guangdong province.
