China MediaExpress Holdings said its auditor Deloitte Touche Tohmatsu has resigned, a month after a short seller accused the advertising company of inflating its results.
Deloitte, whose Hong Kong office audited the company, said in its resignation letter dated March 11 that it was 'no longer able to rely on the representations of management'.
MediaExpress said chief financial officer Jacky Lam resigned two days after Deloitte ended its ties. The company is listed on the Nasdaq market in the United States.
Trading of shares in MediaExpress has been halted since March 11, after losing half of their value since late January when they hit a high of US$22.80. They last traded at US$11.83.
It claims to be the largest company that hosts display advertising on cross-country buses on the mainland.
Its stock fell 33 per cent on February 3 after Muddy Waters Research, an online research firm and short seller, said in a report that China MediaExpress overstated its revenue and only operated half the in-bus DVD machines it claimed to.
