Ernst & Young LLP, the auditor for Youcan Foods International, has highlighted certain concerns found in the FY09 financial statements of the China-based ice cream manufacturer, which may cast doubts about the group’s ability to continue as a going concern.

Ernst & Young noted the group incurred a net loss of RMB32.21 million ($6.6 million) for the year ended December 31, 2009, against a net profit of RMB9.82 million in 2008.

It also noted Youcan’s current liabilities exceeded its current assets by RMB181.47 million, compared to RMB165.43 million the previous year.

“These factors indicate the existence of uncertainty which may cast doubt about the Group’s ability to continue as a going concern,” Ernst & Young said.