Yamada Green Resources asks for more time to report earnings

Mainboard-listed Yamada Green Resources said late on Monday night that a fire in a company vehicle has forced it to ask for more time to release its full-year financial results and to hold its annual general meeting.

The company, a major supplier of shiitake mushrooms, said a vehicle transporting certain finance documents and IT/computer hardware in China's Fuzhou City had gone up in flames on Aug 30, with the driver suffering minor injuries. The vehicle was moving the documents and hardware from the group's research and development centre to its offices as part of an administration consolidation.

It added that a preliminary check found that many of the documents relating to the 2017 and 2018 financial years were among the papers affected or destroyed.

IT/computer hardware was also damaged, including computers that contained records, back-ups and information on finance and related documents.

The group noted that the finance team and records are currently split between two locations - the research and development centre and the office premises. The consolidation of the finance operations at the office premises is intended to improve operational and audit efficiency, and allow both finance staff and external auditors easier access to key management.

It added that the management has "commenced efforts to reconstruct or reproduce the documents affected but will require some time to do so". Under these circumstances, the group's audit for 2017 is expected to be delayed and the external auditors BDO may face certain difficulties in the finalisation of the audit of the group's financial statements for the year.

Yamada flagged a loss for the fourth quarter and full year in a profit guidance on Aug 11. The loss was blamed on unfavourable factors in the group's cultivation business, such as bad weather, rising labour costs and a slowdown in China's economy.

The firm said on Aug 25 that it was applying for more time to file its results and hold its AGM as it had experienced high staff turnover in the finance team and that its external auditors needed more time to complete its procedures.

The company called for a trading halt on its shares on Aug 31.

The stock last closed at 33 cents on Aug 30.

A version of this article appeared in the print edition of The Straits Times on September 06, 2017, with the headline 'Yamada Green Resources asks for more time to report earnings'. Print Edition | Subscribe