1999 HK Man Wah Holdings: A Quick Accounting Review

Analyst

Alasdair Moody

Exposing Creative Accounting

Bucephalus Research Partnership

Bucephalus Research Partnership Limited. Exposing Creative Accounting.

At the Bucephalus Research Partnership (BRP) we analyse financial statements using our accountant's practical experience and our own quantitative algorithms for corporate governance, accounting risk and peer performance.

Our thematic research refines our unique algorithms while our single stock research focuses on examples where we discover a significant gap between published accounts and business reality.

​Bucephalus Research Partnership:
- Is an independent fee-based research service
- Does not take proprietary positions, long or short
- Does not solicit business or fees from the corporates we review

Forensic Accounting

<p>Man Wah came to our attention in both July’s thematic report on debt manipulation and our up coming tax report.  When we realised that Man Wah has a very unusual approach to its treasury operations and some almost miraculous performance statistics, we felt it was time for a closer look.</p><p>Man Wah has been surprisingly profitable for several years but, in FY 2017, it outdid itself, reporting Chinese wholesale gross profit margins that appear to be over 60%. This, combined with a 34% increase in…</p>

Man Wah came to our attention in both July’s thematic report on debt manipulation and our up coming tax report.  When we realised that Man Wah has a very unusual approach to its treasury operations and some almost miraculous performance statistics, we felt it was time for a closer look.Man Wah has been surprisingly profitable for several years but, in FY 2017, it outdid itself, reporting Chinese wholesale gross profit margins that appear to be over 60%. This, combined with a 34% increase in…

Man Wah Holdings (1999 HK): Looking Over-Stuffed