Despite the accounting irregularities, lies and mismanagement of Yihe, its court-appointed receiver says there’s still hope for the company’s survival.
In his first report, filed Wednesday evening in California District Court, James Wong unveils the company’s brief, but complicated history, detailing how the company went from claiming worldwide sales of $500 million to owing creditors in the United States, Canada and China millions.
According to Wong, in 2012, Yihe’s audit showed revenues of about $98 million, not even a fifth of what the company has been claiming in the media, and in 2013 it began defaulting on numerous loans, including food broker Resource One Holdings LLC, which brought suit against the company in August.
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