Technological Industries (0669) was attacked yesterday (23rd) by the short-selling agency Jehoshaphat Research. After a sharp drop of nearly 20%, trading was suspended. The suspension was reported at 74.95 yuan, a drop of nearly 19%.
The company issued an announcement denying the short-selling agency's accusation. Trading resumed this morning (24th), and the stock price rose 5% to 78.65 yuan.
Chuangke issued an announcement at night, saying that it usually does not comment on third-party articles or reports.
However, the company strongly denies the allegations contained in the report, which it believes contain numerous defamatory, biased, out of context, inaccurate and incomplete statements.
Chuangke pointed out that the author of the report did not try to confirm or collect any information about the group's financial statements from the group.
As a listed company, the board of directors and its management team strictly view their fiduciary responsibilities, and have full confidence in the adopted accounting practices and independent audited financial statements.
TTI vehemently denies the allegations contained in the Report, which it believes contain numerous defamatory, biased, out of context, inaccurate and incomplete statements.
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reserves the right to take legal action
In addition, Techtech implements strict internal control over the business to ensure that the Group's financial statements strictly comply with Hong Kong Financial Reporting Standards and truly and fairly reflect the Group's financial status.
The company pointed out that shareholders should be aware that the relevant allegations are individual opinions of short-selling institutions. Under normal circumstances, their interests may not be consistent with the interests of shareholders, and they may also deliberately undermine confidence in the company and management, and damage the company's reputation.
It is therefore believed that shareholders should handle these allegations with caution.
The company reserves the right to take legal action against Jehoshaphat and/or those responsible for the allegations and publication of the report.
The Board considers that the Report contains misleading statements and unsubstantiated allegations that may cause unusual price fluctuations.
Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company.
Short-sellers: Innovation and Technology Manipulates Accounting
The company pointed out that it will issue another announcement at an appropriate time in accordance with the rules governing the listing of securities on the Stock Exchange to clarify and deal with the allegations against the relevant group.
He also pointed out that he has applied for resumption of trading at 9 am tomorrow (24th).
Jehoshaphat Research published a report accusing Innovation and Technology of increasing profits through manipulation of accounting records.
Innovation and Technology's "tricks" in accounting have made the company's profit level trend quite perfect, even rare on earth.
At the same time, it pointed out that among all listed companies with an annual revenue of more than US$1 billion, only Innovation and Technology's gross profit rate can rise every six months and last for 10 years.
The short-selling agency predicted in the report that the share price of Innovation Technology will fall by 60 to 80% in the future.
What is the history of TTI (0669)?
"Electric Drill King" Zhong Zhiping and Horst Julius Pudwill founded Techtronic Industries in Hong Kong in 1985. It was listed on the Hong Kong Stock Exchange in 1990 and was included as a constituent stock of the Hang Seng Index (blue chip) in 2019; the company's cordless electric drills are widely popular welcome.
What brands does TTI (0669) own?
TTI's brands include MILWAUKEE, RYOBI and HOOVER.
