Muddy Water "Knock" Anta Issued Fifth Reports Directly Referring To The Latter Controlling Suppliers.

"See who can persist in the end."

In the afternoon of July 22nd, an investor in the investment field communicated with the international finance Daily reporter that Anta encountered the continuous "sniping" of Muddy WatersResearch.

In July 21st, muddy water issued a 20 page report, accusing Anta's seemingly largest third party supplier, possibly a secret counterparty. Muddy water believes that Anta sports will shift production costs from itself to the supplier, and the financial situation is hard to trust.

In July 22nd, Anta issued a Clarification Announcement on the latest short selling report, saying that the report published in muddy water contained a number of allegations about one of its suppliers and Anta's e-commerce business. "The board strongly denied the accusation in the report, saying the allegations were not accurate and misleading."

For muddy water five degree sniper Anta, Shen Song capital executive director Shen Meng told the International Financial Daily reporter that there are two main reasons: muddy water has not reached the expectation of short profit, and Anta has not bowed its head to acknowledge the alleged problem.

　　 Muddy water has thrown out five reports of accusation.

Muddy water "sniping" Anta's drama should be started in July 8th. On the same day, muddy water released a research report entitled "ANTA Part I:Turds in thePunchbowl", which pointed out that Anta sports can achieve the industry's leading business profit margin because of its use of secretly controlled first-class distributors, and deceitfully raised the company's profit margin.

In the morning of July 9th, muddy water released second short reports titled "ANTA Part II:" MensRea, accusing Anta sports of being suspected of internal corruption and deceiving investors, and transferring the high-quality assets of listed companies by proxy system ten years ago.

In July 11th, third short reports entitled "Fila Buster" issued a question about the number of brand stores in Anta sports's FILA.

In the face of successive "attacks" of muddy waters, in July 9th and July 11th, after three clarification announcements were issued in succession, Anta once took a disregarded attitude. In July 14th, muddy water issued fourth reports on Anta, pointing out that Anta's response to its short selling report was "routine".

In response to the fourth report, Anta did not issue clarification notices. At that time, in reply to the International Financial Daily reporters, he only indicated that all the facts had been clarified and no more comments were made.

Muddy water did not want to give up, and the fifth short report came again.

"So far, we have been focusing on Anta's operating profit performance, which indicates that Anta secretly controls its distributors and passes costs on to them. However, in this part, we will focus on Anta's biggest so-called "third party" supplier, and it is also a secret controlled counterparty. We believe that Anta will shift the cost from its production entity to the supplier. " At the beginning of the latest report, muddy water pointed out.

According to this report, muddy water believes Anta can exclude these entities from comprehensive audits by secretly controlling the so-called third party suppliers.

Muddy Shui said that in his first report, he introduced Peng's brothers: Peng Qingyun and Peng Qing Qi. However, it only introduced Peng Qingyun's participation in Anta's secret dealer management company "Yun Yun" and the two "subsidiary" dealers in Anta. In the latest report, it proves that Peng Qingyun's brother and Anta employee Peng Qingqi owns Anta's largest third party supplier, Henan Ruili sporting goods Co., Ltd.

The report also revealed that in addition to investing and building factories, Peng Qingqi's Fujian mobile company also operates several Anta stores, including Anta's sharp move on Tmall and Jinjiang's peak. Among them, the "Jinjiang summit" is a wholly owned subsidiary of Fujian's mobile company. It has a platform for selling Anta and a platform for selling fie brand sportswear.

In muddy water, the foregoing case reveals another lie about Anta's business, further proving that Anta's financial and Fiji's financial data are not reliable.

For the latest allegations, Anta denied it again, but as before, it did not elaborate.

　　 Anta returns by profit.

After announcements of clarification, or to boost investor confidence, Anta also announced the first half of 2019's earnings.

It is said that compared with the first half of 2018, the profit of Anta will grow by no less than 50% in the first half of 2019, and the profit of the company's shareholders should be no less than 25%. Anta said that the expected growth of profit attributable to shareholders was mainly due to the sustained strong growth in sales of Anta brand and other brand products, resulting in an increase of over 35% in revenue and an increase in operating interest rate over the first half of 2018.

An investment bank member pointed out to the international finance daily that at present, the market is not responding to Anta's repeated muddy water shorting.

Goldman Sachs's latest research report reiterated Anta's "buy" rating with a target price of HK $66. The bank believes that the Chinese sportswear industry still has growth advantages over the long term, and it is expected that Anta's newly acquired brand will benefit from China's outdoor sports and skiing market. The bank quoted Anta management as saying that Anta has confidence in the 10%-20% median of retail sales growth for the second half of the year and the whole year.

CITIC Securities recently pointed out in a report to Anta that short selling agencies were skeptical and optimistic. They were optimistic about the company's absolute strength and long-term steady growth and maintained the "buy" rating.

Dorian, a private trader in Xiamen, told the International Financial Daily that the current brokerage did not give a "sell" assessment to Anta, mainly because Anta's major shareholders did not sell. "Big shareholders do not start clearing stocks on hand, which gives some confidence to external brokerages".

As of July 22nd, Anta shares rose 1.87% to HK $57.3. Compared with the opening price of muddy water for the first time in July 8th, Anta's share price rose 5.52%.

In Dorian's view, Anta's fundamentals have not been much affected by the company's previous suspension measures. "The reason why Anta stopped trading is the fear of excessive panic and excessive selling in this period. Anta then resumed and clarified the matter, in fact, it has survived the market's "most destructive" period.

However, Dorian believes that the reason for Anta's subsequent clarification failed to convince the muddy water and even the market that there is a suspicion of "loopholes". He said that muddy water is now trying to directly prove that Anta's so-called third party companies do have a profit transmission with the affiliate companies and the core management of Anta, and Anta's board of directors has direct control over some key management of some companies.

Dorian said that muddy water was also at a critical moment in the short selling of Anta. Muddy water must now directly prove that Anta's shareholders or listed companies themselves have direct benefits to distributors and suppliers of Anta. One way is to point out that Anta is stealthy in controlling these companies. Once Anta's behavior is confirmed, it will directly constitute fraud against investors. But if muddy water can not prove that it is short of Anta's logic, it will suffer huge obstacles.

"For both sides, the next round of response and game will be very important." Dorian blunt.