CEO Departure Rumors Triggered A Sharp Fall In Share Price Anta Two Announcement Refuting Rumors

Just as Anta was heading forward with a good momentum, a rumor about Anta CEO Ding Shizhong's departure from the country caused a uproar.

Anta's share price also fell.

In response, Anta sports issued two clarification announcements in December 4th, saying that Mr. Ding has confirmed that he did not involve in the incident on the day of the announcement.

We further confirm that Mr. Ding is working normally in the company as usual.

For this reason, analysts say that the potential negative thinking of the outside management or the visibility of the sales volume may be reduced, so the company's rating will be reduced to "reduction".

CEO departure rumours caused a sharp fall in stock prices

Ding Shizhong, chairman and CEO of Anta, is no stranger to the industry.

Under his leadership, Anta sports came out from the low level of the industry and gradually came to the forefront of the industry.

In the semi annual report issued by sports brand, Anta sports has achieved double gains in operating income and gross profit.

Relevant data show that as of June 30, 2014, Anta's operating income was 4 billion 120 million yuan, an increase of 22.4% over the same period, and gross profit of 1 billion 860 million yuan, an increase of 34.4% over the same period last year.

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In the short term, there are still factors such as product homogeneity and fierce competition, so there is uncertainty.

However, as urbanization continues and the proportion of urban population increases, it will help to promote sports demand, and urbanization will increase public incomes, and there will be great potential for the sporting goods market in the future.

Speaking of the industry prospect, Ding Shizhong is full of confidence.

In this regard, insiders believe that Anta has surpassed Lining and has become the leading brand of China's sporting goods industry.

However, under such a good momentum, a rumor has brought a lot of influence to Anta.

According to media reports, in December 3rd, foreign media websites reported Anta.

Ding Shizhong has been involved in many dark scenes and has left the country recently.

Affected by this news, in December 4th, Anta sports shares fell sharply and volume increased significantly. Anta sports had to declare a short suspension.

Anta responded quickly to the stock price volatility caused by the rumor, and issued two clarification announcements at noon and evening on December 4th.

In the clarification announcement issued at noon that day, Anta sports said, "the board of directors has noticed that there have been press reports recently, referring to the involvement of Mr. Ding Shizhong, chairman and chief executive of the company, in Mr. Cai Junwei, the former director of the IRS in Quanzhou, China.

The board has inquired of Mr. Ding about the newspaper report.

Mr. Ding has confirmed that he did not involve in the incident on the day of the announcement.

We further confirm that Mr. Ding is working normally in the company as usual.

In the announcement of "Anta sports further clarification announcement and resumption of trading" released at the end of the night, Anta sports made further information disclosure. "As announced in the announcement, Mr. Ding has confirmed to the company that, as of the date of the announcement, Ding Xian did not involve himself in the incident and asserted that he denied the statement," Mr. Ding regularly worked in the company, and the company did not have any business or any other relationship with Mr. Cai. "

For this incident, the Nanfang Daily reporter has repeatedly called the relevant person in charge of Anta, but the telephone has been in the state of no answer.

However, according to the Xiamen daily, Anta sports brand leader revealed in December 5th that they were not familiar with the foreign media that made the rumor, nor did they contact.

And he has always stressed that this thing has passed. At present, foreign news is based on the announcement and there is no plan for media interviews.

Although Anta's "escaping" rumor has been suspended for a while, the industry believes that the rumor will bring a certain negative impact on Anta.

The public information released by HSBC indicated that Anta sports had clarified the chairman and chief executive Ding Shizhong of the board of directors on corruption investigation involving local officials. However, he thought that the potential negative thoughts on the management might lead to a decrease in sales visibility, so the company's rating was reduced from "overweight" to "reduction".