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Bosses and cash vanish at shoe firm Ultrasonic | Bosses and cash vanish at shoe firm Ultrasonic |
(about 1 hour later) | |
Chinese footwear firm Ultrasonic has announced the disappearance of its chief executive and chief operating officer, along with most of its cash. | Chinese footwear firm Ultrasonic has announced the disappearance of its chief executive and chief operating officer, along with most of its cash. |
The firm, which is listed in Germany, said that both the men, Qingyong Wu and Minghong Wu, had "apparently left their homes and are not traceable". | The firm, which is listed in Germany, said that both the men, Qingyong Wu and Minghong Wu, had "apparently left their homes and are not traceable". |
At the same time, its cash reserves in China and Hong Kong had been transferred and were "no longer in the company's range of influence". | At the same time, its cash reserves in China and Hong Kong had been transferred and were "no longer in the company's range of influence". |
Ultrasonic shares immediately fell 79%. | Ultrasonic shares immediately fell 79%. |
The Cologne-based firm said its German holding company still had a "relevant six-figure amount" of money under its control, so it was still able to meet its payment obligations as normal. | |
Ultrasonic's chief financial officer, Chi Kwong Clifford Chan, and the company's supervisory board were in talks with authorities and business partners in an effort to clarify matters, the firm said. | |
"As soon as new, reliable facts can be verified, they will be disclosed immediately," Ultrasonic's statement on its website concluded. | |
Mysterious | |
Ultrasonic specialises in the design, production and sale of shoe soles, sandals, slippers, urban footwear and accessories in the upper price range. | |
With several facilities in the People's Republic of China, it targets the country's burgeoning middle class. | |
Prior to this mysterious development, Ultrasonic had been enjoying steadily rising revenues and profits. | |
Revenues had grown nearly 10% to 163.8m euros (£130.7m) over the last five years, while net income had risen nearly 14% to 35m euros. | |
In 2013, the company had over 100m euros of cash reserves. | |
Tuesday's share price collapse will have wiped about 57m euros off the company's stock market value. | |
Earlier this year, another Germany-listed Chinese manufacturer, Youbisheng Green Paper, said its chief executive had gone missing without explanation. | |
It later initiated insolvency proceedings. |