Anta Is Muddy Water "Knock" How To Dismantle The Empty Bomb?

After encountering two short selling reports by the short selling organization, Anta came to attack third shots of muddy water.

In July 11th, short selling muddy water issued third short reports on Anta sports, which focused on the number of stores in Anta's brand FILA, and said that investors could not believe the number of Anta FILA stores.

According to the report, Su Weiqing, an independent third party, owns 46 FILA stores in Beijing, but Anta has always claimed to hold all FILA stores. First of all, if Anta acknowledges that Su Weiqing is the agent of Anta, claiming that Anta owns all its FILA is not a lie; if Anta shows that Su Weiqing is not its agent, then Anta claims to have all FILA stores, so one of the two sides is a lie.

Among them, muddy water pointed out in the report that Anta's online FILA store shows that there are 42 stores in Beijing and 56 stores in Hebei. According to the SAIC records, 100% of all FILA Style stores belonging to Anta are only a branch in Beijing, while Hebei is not.

However, muddy water survey shows that the FILA store's tripod (Beijing) Sporting Goods Co., Ltd. and Beijing Jiyuan Ting sports sporting goods Co., Ltd. belong to Su Weiqing holding company, while Su Weiqing holds 97.7% stake in Beijing (Beijing), 2.3% of Beijing's holdings, and 60% of Beijing Jiyuan (40%).

In response to the third short selling reports, Anta sports strongly believed that the allegations were not accurate and misleading, and indicated that shareholders should be aware that the relevant allegations were short selling agencies, while the interests of short selling organizations were not consistent with the interests of shareholders, so shareholders should be cautious about the allegations.

As early as the first short selling report in July 8th, muddy water challenged Anta sports to secretly control a large number of distributors, and "beautify" performance through financial manipulation. Muddy water pointed out that Anta sports secretly manipulated 27 distributors, of which at least 25 were front-line distributors, accounting for about 70% of Anta's retail sales.

In the face of the accusation, Anta issued a clarification report in July 9th, saying that muddy water is not true about its related allegations. It points out that some distributors will call themselves group "subsidiaries" or "branches" to facilitate the promotion of business, rather than a legal definition, which only represents a part of Anta brand.

Subsequently, muddy water released the second part of the short selling report, pointing out that Anta sports insiders have been deceiving outside investors and seeking personal gain. In 2008, insiders used the agent system to transfer high-quality assets of listed companies.

Four days, three short selling reports had a certain impact on Anta sports share price. Anta's stock price plunged 8.68% to HK $50.5 on the first day of muddy water, and the stock fell 7.32% to HK $51.25 as of the morning closing. Anta sports made a short decision on suspension. In July 9th, Anta sports re opened, shares rose slightly 0.1% to HK $51.35, basically stable situation; in July 10th, Anta sports shares fell 1.07% to HK $50.8 again.

As the saying goes, "big trees catch the wind" really express the current state of Anta sports. Anta sports in the market all the way to win the battle, in 2018 gained the brilliant performance in history, become the domestic sports brand "big brother".

According to Anta sports 2018 earnings report, in 2018, Anta's business revenue reached 24 billion 100 million yuan, an increase of 44.4% over the same period last year, and net profit reached 4 billion 103 million yuan, an increase of 32.9% over the same period last year.

As a result, Anta sports have been "eyed" by short selling agencies, and they have been short for three times in thirteen months, and the market value has evaporated ten billion yuan.

In June 2018, Anta was shorted for the first time. The short selling report of short selling organization GMT refers directly to the financial fraud of Chinese sports brands, involving brands such as Anta, Lining and XTEP. GMT points the name Anta, which means Anta's profit margin is unbelievably high. It raises doubts about its revenue growth, cash flow, low inventory relative to income ratio, and high proportion of prepaid accounts relative to inventory.

However, the accusation of GMT is not well prepared. Only in the financial statements, it is pointed out that Anta's problems have not been trusted by the broker. So the short selling report did not have much impact on Anta's share price.

The second time was short in May 2019. The founder of the short selling agency Blue Orca openly questioned Anta's earnings data at the 2019 Sohn Investment Forum in Hongkong, and pointed out that Anta's retail sales revenue of its branded brand Fila was a 34% drop in Anta's valuation.

On the day of the short sale, Anta sports shares fell 12%, and then the share price rose gradually, and the closing price dropped to 5.53%.

Anta sports's rising share price and performance are the direct aspect of the short selling organization. As a domestic sports brand with a certain strength, whether Anta can survive the challenge of short selling depends on the follow-up game.

As a sports brand from Jinjiang, Fujian, Anta is breaking through the tight encirclement of competition, and has rushed out of the country to the world, and has become the third largest sport brand in the world. Thanks to the golden age of China's sports industry, Anta has been developing very fast in recent years. It has achieved high performance in the excellent performance of capital operation and brand, and has also earned the public's attention.

Anta sports's rising share price and performance are the direct aspect of the short selling organization. As a domestic sports brand with a certain strength, whether Anta can survive the challenge of short selling depends on the follow-up game.

In July 11th, as of press release, Anta sports shares rose 0.8% to HK $51.3 / share, with a total market value of 138 billion 573 million yuan. Author: Qin Jin Mei