Bashi Tosumishi: Short Selling Reports Are False And Will Be Repurchased In Time.

In the early morning of June 25th, Boston issued a Clarification Announcement against the short selling of the short selling organization, and at the same time made a positive response based on the facts, claiming that the content contained in the short selling report was false and misleading. If there is any material loss to the company and its shareholders and investors, the company will retain all its rights and maintain such rights through appropriate means or by any other means. Meanwhile, Bosideng resumed its trading on the 25 th.

On the 24 day, Bosteng, one of China's down jacket, was attacked by Bonitas, a foreign professional short selling organization, which was highly concerned by the market. The short selling report said that its existence includes exaggerated revenue and profits, undisclosed related party spanactions, and the low price purchase of undisclosed insiders. Affected by this, Bosideng stock fell significantly, and then suspended.

Bosideng responded to the false information presented by the short selling organization. At the same time, "since its listing in 2007, the company has endeavoured to comply with all relevant listing rules and regulations, and diligently manage and operate business in order to create maximum value for shareholders. At present, Bosideng's performance is stable and effective, and its effective operation and management has brought about improvement to the company. We have confidence in the company's future. We will continue to strengthen corporate governance, strive to enhance spanparency, continue to take advantage of the company's core competitiveness and brand, consolidate the leading position of the brand down garment industry and expand the market share. We welcome shareholders, investors and regulators to monitor the company's business operations and financial performance. "

Four queries on real data counterattack

The announcement shows that Bosideng has responded positively to the facts, with regard to the four major doubts raised by the short selling agency.

Question 1: disclosure of fictitious net profit in financial statements

Boston responded: the short selling report is not a comparison of similar projects, and the expression of China's Affiliated Companies is likely to cause public confusion because the accounting standards and reporting cycle of the two sides are different.

The report adopts the Chinese accounting standards different from the company's IFRS, and the reporting period (as of December 31st) is different from the annual report of the company in the reporting period (up to the end of March 31st).

The number of subsidiaries covered by the report is far below the number of subsidiaries covered by the annual report (at least 80 or more), and does not reflect the overall operation of Bosideng.

In addition, the report lacks knowledge of Bosideng's internal business operations. Company subsidiaries are used for different purposes, including the purchase of raw materials, design and sales, and these subsidiaries will inevitably be associated with Bosideng.

A subsidiary carries on a spanaction, so the spanaction between them is a normal operation spanaction. This spanaction and related balance sheet items, such as trade receivables and trade payables, are set off in the consolidated statements of listed companies, and will not distort or exaggerate the overall financial situation of the company.

Question 2: overpayment for undisclosed insider sources on multiple acquisitions

Bosideng responded: since 2011, in expanding the business of non down garments, the company has taken the opportunity to merge with all kinds of strong development potential brands, with a view to create synergies and build a combination of women's fashion brands, thus laying the foundation for Bosideng's development of women's fashion business.

The women's clothing brand "Jesse" was founded in 1998 by Mr. Zhou Mei and he was not founded by Mr. Zhou in 2008. Mr. Zhou has more than 18 years experience in the women's clothing industry, and is one of the most important personnel to assist the company in evaluating the acquisition of suitable brands to further expand women's clothing business.

"Bang Bao" brand and "corleano" brand also have a long history of development. The two brands were founded in 2004 and 1992 respectively, and accumulated a large number of consumers in their respective market segments.

The three acquisitions of women's clothing brands (namely "Jesse", "bang Bao", "corleano" and "CORBA") are determined by reference to various factors, including the future profitability of the industry, the financial performance of the acquisition at key time points, the profit guarantee and the payment method, rather than the reference to the net asset value of these Target Corp.

In addition, prior to the three takeover, the company has hired internationally renowned and professional auditors, legal advisers, valuers and / or other consultants to conduct due diligence and valuation to ensure that the pricing is fair and reasonable and in line with the overall interests of all shareholders of the company.

The company has approved each acquisition separately by the board of directors, and the acquisition of women's clothing brand is the important layout of the company. Through the synergy of three companies and the different positioning of women's clothing market, the company is committed to creating a women's fashion platform running through the north south market.

The board of directors of Bosideng also reiterated that the company has made detailed disclosures in accordance with the listing rules and the securities and Futures Ordinance at the acquisition announcement nodes and Dr. Kong Shengyuan and its entities. There is no violation of any listing rules or legal provisions on the above three acquisitions.

Question 3: disposal of assets without payment.

The announcement of the February 17, 2017 announcement that the property was worth about 54 million yuan was sold by Jiangsu Donghua Land Real Estate Appraisal Co., Ltd. in December 31, 2016, after the valuation of the property market value.

In March 2017 and May 2017, the Shandong ice fly Clothing Co., Ltd. received 5 million yuan and 49 million yuan respectively. It was also incorporated into the capital pool managed by Bosideng international apparel (China) Limited, a wholly owned subsidiary of the company.

The company can provide documentary support for all payments received. The company considers that it is totally incorrect to dispose of assets at the bargaining price and the buyer's outstanding payment.

Question 4: pay huge dividends to Bosideng insider with more than 65% of boon's shares issued.

Boston responded: the allegation was groundless. Since the listing of the company, cash dividends have been distributed to shareholders almost annually. The company believes that the practice of dividend payment provides stable and satisfactory returns to shareholders and indirectly proves that the company's financial position is sound.

Gao Dekang, chairman and President of Bosideng's board of directors, said he is confident of the company's overall development, prospects and growth potential, and plans to further increase its stake in the company in due course.

In addition, the announcement indicates that Bosideng also plans to further repurchase the shares of the company at the right time.

Many high quality enterprises have been short sellers.

According to Eide securities data, there are many examples of short listed companies sniping in Hongkong market, such as western cement, frog prince, Zhong Jin regeneration, Shichang medicine, Shougang resources, Qifeng international, Hui Shan dairy, China Tong Tong, Shen Guan holdings, China National Natural gas, Ruicheng international, Hannon thin film solar energy and so on, which can list hundreds of companies.

In fact, short selling organizations sometimes sell not only the nameless generation, but also the famous enterprises in the market, the more recognized white horse, and the companies with consistently outstanding performance have become short sellers. Over the past year, a number of well managed enterprises have been short selling by short selling companies.

According to media reports, the number of short selling agencies has surged by 7 since 2017, and the selling error has risen to 67%. That is, three of the Hong Kong stocks issued by the short selling agencies, the stock price has basically been restored or even innovated in 3-6 months.

Investors' opinions on selling short messages also began to split up. Although some of the companies short selling by the organization declined on the same day, the market performance has stabilized and recovered with the digestion of bad news and the performance of enterprises.

Market participants say that short selling is more common in the Hongkong market based on market natural ecology, and the hidden logic of interest is also known by the market. Short selling reports are just a saying. Investors' opinions on whether they need to see the report are valid, and their reliability and authenticity need to be cautious.

Many brokerage firms are optimistic about Bosideng's development prospects.

It is reported that Bosideng since its inception for 23 consecutive years, the first sales of national down garments, is the first brand of domestic down garments. In 2013, the company and the industry went through a series of adversities such as brand slaughter, inventory accumulation and so on. In the 2014-2016 year, Bosideng down garment business experienced a period of adjustment, and Bosideng was upgraded and upgraded in 2018. At present, the company has entered a new growth cycle after a comprehensive upgrade. As of February 25, 2019, revenue in fiscal 2018~2019 increased by more than 35% over the same period last year, and Boston's single brand retail sales exceeded ten billion for the first time.

According to wind data, since the Q3 quarter of 2018, domestic brokerages have offered "buy or increase" ratings.

　　 Guoxin Securities research reported that "Bosideng deep plowing down jacket for many years, the industry has a strong leading position. Its long history of brand and professional production give its ingenuity to the core, which is different from most local brands.

Guosheng securities research reported that in 2019, with the brand recovery, product design innovation, marketing publicity, terminal stores optimization and upgrading of many measures, along with the spanformation of brand younger, continuous improvement of product quality, fast response mode established, follow-up revenue growth and profitability is expected to significantly improve, Bosideng sales is expected to continue to improve.