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Alibaba film unit found possible non-compliant accounting

Alibaba Pictures, a recently formed film and TV production unit of Alibaba Group, said it had found possible non-compliant accounting and had requested that trading of its Hong Kong-listed shares be suspended.

On June 24, Alibaba Group completed its $804 million purchase of a 60 percent stake in ChinaVision Media Group, which has been renamed Alibaba Pictures Group.

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Alibaba Pictures said on Friday that it had found possible "non-compliant treatment of financial information" from periods prior to the deal as its new management undertook a review of the company's financial and business matters.

"The company is not yet in a position to comment on the potential impact on its current and historical financial affairs of the matters described above," Alibaba Pictures said.

Alibaba.com's headquarters in Hangzhou, China
Thomas Lombard | Wikipedia
Alibaba.com's headquarters in Hangzhou, China

Shares of Alibaba Pictures last traded at HK$1.61 before they were halted on Friday.

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The stock has more than doubled since late February, prior to the announcement of Alibaba Group's investment.

Alibaba Group is preparing what could be the biggest-ever listing by a technology company in the United States.

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