China Minzhong Food Corp. said a report by short-seller Glaucus Research Group that questioned its accounts misunderstood the food processor’s business and it delayed the release of its financial results until this evening.
Minzhong, which this week lost half its market value after Glaucus published the report, is preparing a detailed response that will show its financials are sound and address specific issues raised by the short-seller, the company said. Its shares will remain suspended until the end of the trading day tomorrow.
“Most of the issues raised by Glaucus with regard to the financials of the company were nothing new and arose out of a complete lack of understanding of the company’s business model as well as the operating environment in China,” Minzhong said today in a statement to the Singapore Exchange.
Minzhong is seeking to allay concerns as more Chinese companies trading in Hong Kong, Singapore and New York become targets of short sellers. Minzhong is among 143 China-based firms listed on Singapore’s S$967.4 billion stock market, according to the latest data from the exchange.
The full-year financial report was delayed from this morning to “facilitate the verification and confirmation of certain issues referred to in the report,” Minzhong said in the statement.
Glaucus’s report said that the Putian, China-based company had been “significantly deceiving” regulators and investors, sending the stock 48% lower and wiping off $318 million in market value in less than two hours on Aug. 26 before trading was suspended.
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