MonsterMob, whose China woes will be familiar to regular EngagingChina readers, has warned investors that two of its Chinese businesses have stopped sending it trading data.
It said the subsidiaries, M Dream and W Infinity, have told Monstermob they will no longer supply it with financial or operational information.
M Dream was acquired in January 2006 and W Infinity the following April. For the 2006 financial year, they together accounted for slightly less than £12m out of the company's total consolidated turnover of £107m.
But as we recently reported, the performance of all of MonsterMob's Chinese subsidiaries fell significantly in the second half of 2006 due to the China Mobile's clampdown on over-aggressive selling of ring-tones and the like — MonsterMob's main business.
During the second half, M Dream and W Infinity reported a profit of £0.5m at the EBITDA level, on turnover of £4.9m.
Monstermob, listed on London's AIM market, is taking legal advice on the matter, but warned if the impasse is not resolved swiftly it may not be able to deliver interim and full-year results for 2007. A trading statement, though, will be announced shortly, it said.
Elsewhere on AIM:
Betex Group, another troubled China play listed on London's AIM, has lost its UK-based CEO and finance director. They resigned after being unable to get assurances that they would not be arrested if they set foot in China, which they wanted to do in order to sort out the company's problems. Betex was the first foreign investor in China's sports lottery and last month two of its China-based executives were detained by police and investigated for alleged involvement in illegal operations.