Jadeorstone.com, which bills itself as a “corporate investigator aimed at Chinese companies traded overseas” issued a report on Telestone Technologies Corp., a Beijing telecommunications company whose financial reporting and history were the subject of previous Sharesleuth reports.
Jadeorstone’s report on Telestone (Nasdaq: TSTC) alleged that:
- The company’s production capacity is roughly 75 percent below the figure listed in its official statements
- Telestone’s core wireless communications technology – WFDS 1 – is simplistic and easily duplicated.
- There are egregious gaps between Telestone’s reported revenue and income in its Securities and Exchange Commission filings and those in its local
Chinese tax filings.
The author of Jadeorstone’s report, which comes in at over 30 pages and is replete with photos of Telestone’s sometimes empty offices and production facilities, remained anonymous. Jadeorstone said its findings “were attained from on-site visits to all of the company’s main facilities and interviews with company’s employees, among other sources.” Read the full report.
