Bosideng Counterattack And Resume Trading For 15 Minutes, Ceng Pan Returns To Market Value Of HK $2 Billion 500 Million.

03998-HK, a sniper by the financial predators, was criticized for being worthless. The market value evaporated 6 billion Hong Kong dollars in one hour yesterday. In June 25th, Bosideng counterattacked and issued a clarification notice, in addition to refuting the four crimes mentioned in the short selling report and countering the five crimes of financial predator Bonitas Research.

In order to express confidence in the company's development prospects, Gao Dekang, the controlling shareholder of the company, intends to further increase the shareholding of the company in due course. In addition, the company also repurchased shares in the market at an appropriate time. The company's shares opened after the resumption of trading today, and the share price rebounded V. At 9:45, it saw a record high of HK $1.98, up 14.5% or 0.25 Hong Kong dollars from the 1.73 ports before the suspension yesterday, and Ceng Pan returned to HK $2 billion 500 million over a short period of 15 minutes.

Gao Dekang, chairman of the board of directors of Bosideng International Holdings Limited, issued a clarification notice of the company's signature, which has five crimes against Bonitas's short selling report, including:

1. contains misleading, biased, selective, inaccurate and incomplete statements, unwarranted accusations and irresponsible guesses.

2. before or after the short selling report, the other party has no contact with the company or the director.

3. Bosideng also noted from the Hongkong Securities Regulatory Commission website that Bonitas has not been authorized to conduct any regulated activities in Hongkong, including investment advice.

4.Bonitas may have an investment position in the company's stock and may achieve significant gains by fluctuating stock prices.

5. the individual authors of the report chose to remain anonymous, and should be extremely cautious in reading the report and its allegations.

Bosideng hopes to invite Bonitas and its research supervisor to visit the company to better understand Bosideng's company strategy, business layout and operation.

As for Bonitas's four crimes against the company, Bosideng was hit by one blow:

1. in the declaration of financial statements, fictitious profits.

Bonitas's accusation: "although the disclosure documents of the Hongkong exchange disclosed that Bosideng accumulated a net profit of three yuan for 1 billion 300 million yuan in the past year, the comprehensive China credit report showed that Bosideng Affiliated Companies only created a net profit of RMB 463 million yuan. For us, evidence shows that Bosideng has created a net profit of RMB 807 million yuan and 174% yuan since 2015. Bosideng insiders conduct false inter company spanactions through a number of direct and indirect Affiliated Companies.

Boston responded: the above credit reports are based on Chinese accounting standards, which are different from the international financial reporting accounting standards adopted in Boston's annual report; the credit reporting period is the year ended December 31st, while Boston's reporting period is the year ended March 31st; the number of Affiliated Companies covered by the short selling report is much lower than that of the Affiliated Companies at least 80 or above covered by the Boston annual report, which failed to reflect the overall operation of the group.

There are many direct and indirect Affiliated Companies in the group for inter company spanactions, because these Affiliated Companies have different purposes, including the purchase of raw materials, design and sales, and such Affiliated Companies will inevitably trade with other Affiliated Companies of the group. Such inter company spanactions and related balance sheet items are set off at the merger of the group level, and will not distort or exaggerate the overall financial situation of the group and are audited by the statutory auditor.

2. make overpayments to the undisclosed insider in many acquisitions.

Bonitas's accusation: "we believe that Chairman Gao used three major false spanactions to spanfer Boston's cash and shares to the undisclosed related parties: Jesse, bond and Tianjin women's wear. The core personnel of the high chair plan are undisclosed conspirators, namely, Zhou Mei He and Kong Shengyuan.

Boston's response: the fashion women's brand "Jesse" was founded in 1998 by Zhou Mei and in 1998, instead of being claimed to have been established by Zhou in 2008. "Bang Bao" brand and "corleano" brand were founded in 2004 and 1992 respectively, and accumulated a large number of consumers in their respective market segments. The price of the three acquisition of fashion women's clothing refers to the future profitability of the industry's price earnings ratio, the financial performance at the time of acquisition, the profit guarantee and the payment method, rather than the reference to the net asset value of Target Corp. In addition, the group has hired internationally renowned and professional auditors, legal advisers and valuers to conduct due diligence and valuation. The acquisition of fashion women's brand is the core strategic plan of the company, and is committed to creating a fashionable women's wear platform that runs through the north south market.

3. dispose of assets without payment.

Bonitas's allegation "Boston Affiliated Companies, Shandong ice fly Garments Co., Ltd. is the seller of Shandong property to Chairman Gao." At the time of purchase, Munami Jito, the high president, paid 10% of the initial cost (RMB 5 million 400 thousand), while the remaining RMB 52 million yuan of Nami Jito, Shandong, had been disclosed as a "other receivable", and the money owed by the high chairman of Shandong to Bostan was disappearing.

Boston's response: the accusation is in fact incorrect and misleading. The cost of the sale of the property is about 54 million yuan, and the cost has been settled according to the prescribed timetable set out in the sale agreement.

4. paid huge dividends to bosiden insider.

Bonitas's accusation: "in the past, Bosideng insider paid over Bosideng's over 65% stake paid huge dividends".

Boston's response: the accusation is malicious and groundless. Since its listing on the stock exchange, the company has paid dividends to shareholders on a pro rata basis on an annual basis, providing stable and satisfactory returns to shareholders and indirectly proving that the company has a sound financial position.

The clarification notice emphasizes that shareholders, investors and regulators should supervise the operation and financial performance of the company, but will not tolerate the slander on the company based on its own interests, damaging the reputation and business prospects of the company. If there is any material loss to the company, its shareholders and investors, the company will retain all its rights and maintain such rights through appropriate means or by any other means.

At the same time, Bosideng held a telephone conference yesterday to communicate with the securities industry and the fund sector to make a detailed explanation of the short selling report. Analysts then released an analysis report. Dahua follow-up report pointed out that the company's foundation was stable, giving a rating of buying investment, and the target price remained unchanged at HK $2.35. The report considers that the evidence of the short selling report is not specific enough, and Bosideng management also refutes the allegations one by one. After Boston's share price slumped yesterday, the forecast price earnings ratio in 2020 was 13.8 times, while the price earnings ratio in the same industry ranges from 10.8 to 22.5 times. Soochow securities issued a report to continue to see Bosideng focus on the management bonus release of the down jacket main channel strategy, and maintain the buy investment rating. The company's Clarification Announcement has refuted the query raised by the short selling report. The report shows that since the listing of the company, the average dividend yield has exceeded 70%, reflecting good operation and healthy cash flow.

Bosideng yesterday recorded short selling amount of HK $58 million 50 thousand, and this morning the short selling amount was nearly HK $31 million 478 thousand. From this morning's stock price performance, it closed at HK $1.92 at noon, up HK $0.19 or nearly 11%, first win, and hit short sellers at the same time.