Anta Sports Has Been Evaporated By Institutional Market Value By More Than Ten Billion.

Anta sports was closed this morning, and the suspension was announced at noon, closing down 7.32% at midday. Muddy water issued a report that its earnings data are not credible.

In July 8th, Anta sports midday announcement said that the HKEx suspended briefly. Anta sports was sold short this morning, down 7.32% at midday, at HK $51.25, evaporating more than 10 billion market capitalization and HK $138 billion 400 million in total market value.

According to the report, Anta is closely related to its distributors and privately operates 27 distributors. At least 25 of them are front-line distributors, which account for about 70% of Anta's retail sales. Anta insists that its primary distributor is an independent third party, which is a lie. The fact that Anta controls its primary distributor is well known among Anta's senior managers. Muddy water thinks Anta controls these subsidiaries to manipulate the financial situation of its reports.

Prior to that, Anta sports had encountered the short selling of Blue Orca Capital and GMT Research Limited two agencies, which all pointed to the excessively high profit margins and financial fraud of Anta sports.

In May 30, 2019, Blue Orca suggested selling Anta sports, saying that the company's retail sales revenue of its brand Fila was valued at a potential drop of 34%, valued at HK $32.93 per share. At that time, Anta sports issued a Clarification Announcement, strongly denied the speculation that the speculation is inaccurate and misleading.

In June 2018, GMT Research Limited released a report that a number of Chinese sporting goods companies, including Anta, falsified the company's profits and alleged that they had exaggerated their income and profit margins by fraudulent means. Subsequently, a number of companies clarified the allegation without foundation.

From the performance point of view, in 2018, Anta sports business income increased by 44.4% over the same period, reaching 24 billion 100 million yuan; the net profit of shareholders belonging to listed companies increased by 32.9% over the same period, reaching 4 billion 100 million yuan, maintaining double-digit growth for 5 years, and creating the best performance in Anta's history.