China FlexPack auditors raise going-concern issue

Singapore

THE auditors of China Flexible Packaging Holdings have drawn attention to potential doubts about the company's ability to continue as a going concern.

"Without qualifying our opinion, we draw attention to Note 2 to the consolidated financial statements which indicates that the group incurred net losses of approximately RMB629.97 million and negative cash flow from operating activities of approximately RMB47.50 million for the financial year ended Oct 31, 2013," joint external auditors HLB Hodgson Impey Cheng and Foo Kon Tan Grant Thornton said in a matter of emphasis. Their audit report was on the company's financial statements for the financial year ended Oct 31, 2013.