SINO GRANDNESS: "GeoInvesting report was mischievous and reckless"

GeoInvesting, while claiming not to have a short position on Sino Grandness, devoted ample time and other resources on the ground in China to put together a negative report on the company. Last Wednesday (Oct 26), its report "Is This Singapore Listed Company Rotten At Its Core?" started to become widely circulated in the market.

As the stock trading turned volatile and unusually active, Sino Grandness decided to halt the trading the next morning while it delved into GeoInvesting's report and prepared a rebuttal.

Sino Grandness this evening issued a detailed rebuttal of GeoInvesting's report, "strenuously refuting allegations" in the report and calling GeoInvesting's conclusions "mischievous and reckless". 

The full Sino Grandness rebuttal is published on the SGX website. 

Trading of the stock will resume tomorrow morning.

In the conclusion section of its rebuttal, Sino Grandness said: Huang Yupeng, CEO of Sino Grandness. NextInsight file photo.While we respect the right of our shareholders and the public to raise their concerns and queries regarding the published results and performance of the Group, the matters stated in the Report has gone beyond fair comment and are misleading. "While GeoInvesting claimed to have acted on information obtained from public sources, they have drawn conclusions which are mischievous and reckless. "We wish to reiterate that our accounts have been prepared in accordance with Singapore Financial Reporting Standards (“SFRS”) and audited by external auditors Foo Kon Tan LLP, and there has been no qualification in their reports over the years. “The (GeoInvesting) Report presents a highly selective and misleading presentation of the financial position of the Group as well as contains numerous errors.” "Based on the clarifications as stated above, the Board is of the opinion that the Allegations in the Report were made without due considerations to the underlying facts, inappropriate and misleading to the Company’s shareholders and potential investors. “The Company reiterates that it is continuing its ongoing efforts towards obtaining the approval for the Proposed Listing of the Beverage Business. The listing application is valid for 6 months from date of submission after which it will automatically lapse and relevant information will need to be updated. The lapsing of the listing application does not mean that the Proposed Listing has been cancelled. The Company is in the process of updating the relevant information including the most recent quarterly financial results.” "The Company views the Report as damaging the value that the Company has created for shareholders over the years and reserves the right to consult its legal advisers on its possible recourse. "The Company and the professionals named in the Report reserve the right, and will be taking legal actions on the advice of its legal counsel to defend their rights and reputation. "The Board of Directors of the Company collectively and individually accepts responsibility for the accuracy of this announcement."