SINGAPORE - Advance SCT, which engages in global recycling and waste management, said on Sunday its independent external auditors have issued a qualified opinion on one of its subsidiaries in China.
Auditing firm Moore Stephens said the financial statements of Shenzhen Jestern Technology Co, a subsidiary that Advance SCT acquired on Jan 3 last year, were audited by another auditor based in China.
Moore Stephens said it was "unable to perform normal audit procedures" on this subsidiary's financials.
It also issued an "emphasis of matter" for Advance SCT, noting its net loss of $6.95 million last year, its net current liabilities of $130,000, and its deficit in shareholders' funds of $491,000.
These may cast "significant doubt" on the ability of Advance SCT to continue as a going concern, it said.