Financial News
Written by: Zhang Weilun
2019-11-22 22:20
Last updated date: 2019-11-22 22:21China Feihe (6186), which was listed only on the 7th trading day, was suspended by the short-selling agency GMT. GMT pointed out in the report that China Feihe has a strong income growth and a large amount of cash. It has never paid dividends in the past five years, which is in line with the characteristics of fraud. It is recommended that investors avoid it.
The company issued a five-page clarification announcement at night, pointing out that the other party’s allegations were unfounded or misrepresented; it also stated that it had applied for a resumption of trading at 9 am on Monday (25th).
Said the joint sponsor has conducted due diligence on finance and business
Feihe responded within the company, stating that the joint sponsor has conducted independent due diligence on the company's financial and business conditions disclosed in the prospectus.
At the same time, it is pointed out that the historical financial information as of 2016, 2017, 2018 and the end of June 2019 contained in Appendix 1 of the Prospectus are audited by external nuclear data Ernst & Young and an unqualified audit report is issued. The joint sponsor has conducted independent due diligence on the financial information disclosed in the prospectus.
The company has obtained the certificates issued by the major cooperative banks in the Mainland regarding the balance of RMB deposits in these bank accounts on September 30, stating that there are 8.229 billion yuan in deposit balances in the six banks.
It is not uncommon to claim that special interest is distributed to shareholders.
The company stated that it has requested the Taxation Bureau of the Qiqihar City Taxation Bureau of the State Administration of Taxation and the taxation certificate issued by the Zhenlai County Taxation Bureau to prove the total tax amount of the company's major subsidiaries in the Mainland in accordance with applicable Chinese laws and regulations in 2018 and from January to June this year. , respectively, 2 billion yuan and 1.4 billion yuan.
The company also pointed out that certain information and statistics on the market for the dairy industry and the infant formula in the Mainland are derived from the market research report compiled by the independent consultants, and that the relevant information and statistics are true in all material respects. Not misleading.
According to the company, after the privatization of FCUS, no dividends were paid for several years for business development and fund management. As disclosed in the prospectus, in order to give back to shareholders, from the past retained profits on October 14 this year, it announced a special interest of HK$3 billion to shareholders, and it is not uncommon to distribute special interest before listing. At the same time, it is pointed out that in each financial year after the listing, a net profit of not less than 30% is distributed to the shareholders. Depending on the company's future investment plan, the dividend policy also represents the confidence of the board of directors in the company's cash flow and cash position. The company stated that the dividend policy has not changed.
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