Yesterday shares of LDK Solar Co., Ltd. (NYSE: LDK) were down more than 18% after the company released second quarter earnings, which reported a second significant inventory write-down. The shares are down 82% since asensio.com issued its first report on LDK.
asensio.com previously issued 17 reports on LDK beginning in October 2007 concerning accounting irregularities. The irregularities centered on the company’s inventory figures and reported earnings.
To read the asensio.com reports on LDK’s inventory issues and previous write-down, click here.
In Febuary 2008, LDK stated that a purportedly independent committee found no material errors in LDK’s inventory accounting. The committee retained the law firm Simpson Thacher & Bartlett to handle an investigation on the inventory issue. asensio.com questioned the validity of the findings.
A research analyst from Soleil Securities Group published a report following the earnings release stating that LDK would be “bankrupt anywhere but China.”
The case of LDK appears similar to the accounting irregularities of another U.S.-listed Chinese company reported on by asensio.com: China Sky One Medical, Inc. (NASDAQ: CSKI). To read reports on CSKI, click here.