Bosideng Suspended Stock Price Record Decline Was &#34, Not Worth "

In June 24th, Bosideng's share price fell 24.8%, encountering institutional short selling, and then announced the suspension. The short selling agency Bonitas (Boli Das) issued a report that questioned the revenue and profits of Bosteng, an old clothing company in China.

The short selling report says Bosideng has fabricated a net profit of 807 million yuan since 2015, and there are many open market frauds, including exaggerated earnings and profits, and undisclosed related spanactions. The report said that the stock was totally worthless, giving zero yuan, and the company responded that it was not true.

According to the report released by Bonitas, on the one hand, Bosideng has fabricated a net profit of 807 million yuan since 2015 and reported 174% more. On the other hand, Bosideng board chairman Gao Dekang made a 2 billion yuan interest from the company through multiple acquisitions by undisclosed insiders.

Although Bosideng claims that its main acquisition is from an independent third party, the SAIC Filings's equity spanfer agreement shows that the three major acquisitions of Boston are from Mr. Zhou, an accomplice of chairman Gao. In our view, Mr. Zhou will buy a small and free clothing brand and sell it to Bosteng in one to three years, which is 40 times higher than the price initially paid by Mr. Zhou.

In the Canada Goose Holdings Inc. Canada goose and Moncler SpA alliance can be favored by the popularity of Boston, over the past year, the performance is brilliant. The company's annual report in June last year showed that in the 2018 fiscal year ended March 31, 2018, the group's net profit rose 57.1% to 615 million 500 thousand yuan, and the net profit in the 2017 fiscal year was 391 million 800 thousand yuan.

Last September, Bosideng attended the fashion week in New York. In October 20th, Bosideng upgraded the flagship store of Nanjing East Road in Shanghai. According to Bosideng information, hundreds of Bosideng shops are open at the core commercial blocks of major cities across the country. Beijing Xidan, Hangzhou Tower, Chengdu Chunxi Road, Tianjin Binjiang Road and so on all appeared a new image of Bosideng shop; in addition, Disney launched cross-border cooperation.

In January 8th, Bosideng announced that the 2018/19 fiscal year was the first year for Bosideng to implement the new strategy of "focusing on the main channel and diversifying". We will continue to enhance the product quality upgrading and fashion function innovation of the brand down garment business, and upgrade the channel, brand image and retail operation at the same time, and develop the brand down garment business steadily.

Boston's midday announcement said the company had stopped trading on the main board of the HKEx at 11:16 a.m. on June 24th, pending the company's response to a clarification notice on the report that the company considered false and misleading.

But Bosideng insiders said, "the fundamentals and the response of new products are all right. They are simply sold out by overseas institutions."