Bosideng refutes short-seller claims
Tuesday, June 25, 2019
Bosideng International (3998) shares resumed trading today and recovered by 10.98 percent to HK$1.92 after the company responded to short-seller Bonitas Research.
The clothing retailer denied all of the allegations against it in the Bonitas report, saying the short-seller's statements were misleading, biased, selective, inaccurate and incomplete as well as groundless allegations and irresponsible speculations.
In response to the allegations that Bosideng has overstated its profit by 174 percent, the company said the accounting standards adopted by Bonitas, which was China Accounting Standards applicable to private companies, are different from the International Financial Reporting Standards applied in the annual report of the company.
Meanwhile, the reporting periods adopted by the short seller and the annual report period of the company are also different.
To the accusation that Bosideng's chairman Gao Dekang used three primary sham transactions to siphon out Bosideng’s cash and stock into the hands of undisclosed related parties, the company replied that the three acquisitions were part of the expansion of its non-down apparel business.