Cedar Strategic to conduct special audit of accounts, suspends trading after SGX query

SINGAPORE - Cedar Strategic Holdings is engaging an independent auditor to review the firm's accounts for financial years 2013 and 2014 to uncover any potential irregularity. Trading of its shares has also been suspended.

The Catalist-listed property firm made this announcement on Tuesday in its response to Singapore Exchange's queries, which came on April 9 following unusual volume movements in the Cedar's shares.

Over 69 million Cedar shares were traded on April 9, up from the one to three million share level just days before.

"The board has decided to engage an independent auditor to conduct a special audit to, inter alia, review and/or ascertain the accounts and transactions of the group for the financial year ended Dec 31 2013 and financial year ended Dec 31 2014, whether there are any irregularities in the accounts and transactions of the group," Cedar said i a filing with SGX.

The company is unaware of any other information that could lead to the unusual volume movements, it claimed.

Formerly China Titanium, the company was renamed Cedar Strategic in 2012 as it switched its focus to property businesses. As part of the transformation, Cedar acquired Trechance Holdings in 2013, which has various property development and management units in China.

But the venture has failed to take off amid financial uncertainties. In February this year the company announced that it's selling its shares in Trechance.

"Due to financial constraints and limited resources, the company was unable to commence developments of certain real estate projects in China," Cedar said in February, adding that the company decided to dispose of Trechance to avoid the property market headwinds and credit volatilities in China.