China Huishan Dairy (6863)

China Huishan Dairy (6863)

Postby winston » Fri Dec 16, 2016 12:03 pm

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Muddy Waters Shorts China Huishan Dairy: Alfalfa Fraud, Worthless

By Shuli Ren

In its IPO prospectus, Huishan claimed its own alfalfa production costs were $70 per metric ton, versus about $400 per metric ton for imported alfalfa.


Muddy Waters said that Huishan has been importing “substantial” quantities of alfalfa from third parties.

“We and our investigators spoke with suppliers and importers of alfalfa in three different provinces, some of whom were selling alfalfa to Huishan.”


We believe Huishan has engaged in CapEx fraud related to its cow farms.

We estimate that Huishan has overstated the spending on these farms by RMB 893 million to RMB 1.6 billion.


http://d.muddywatersresearch.com/wp-con ... 161216.pdf


Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... worthless/
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Re: China Huishan Dairy (6863)

Postby behappyalways » Fri Mar 24, 2017 7:21 pm

carson-block-stays-up-all-night-to-watch-huishan-crash-he-called
https://www.bloomberg.com/news/articles ... -he-called
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Re: China Huishan Dairy (6863)

Postby winston » Fri Mar 24, 2017 8:10 pm

Huishan Dairy sinks 85% in Hong Kong

[HONG KONG] Shares of China Huishan Dairy Holdings Co sank by a record 85 per cent in Hong Kong before the company halted trading.

The sudden crash wiped out about US$4.1 billion in market value in the stock, which was the worst performer on the MSCI China Index.

A record 779 million shares in the company changed hands, the most on Hong Kong's exchange.

The mysterious tumble will increase concerns about the risks that can befall investors in Hong Kong, after the 47 per cent plunge by Hanergy Thin Film Power Group Ltd in 2015. The move is also a vindication for Carson Block, whose Muddy Waters Capital LLC said in December it was shorting the stock in the conviction the company was "worth close to zero". Huishan said at the time allegations in the report were groundless and contain misrepresentations.

Calls to Huishan Dairy's investors relation department were not answered. Lorraine Chan, a spokeswoman for Hong Kong Exchanges & Clearing Ltd, said the bourse operator doesn't comment on individual companies.

Ernest Kong, a spokesman at the Securities and Futures Commission, declined to comment on the matter.

Source: Business Times

http://www.businesstimes.com.sg/consume ... -hong-kong
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Re: China Huishan Dairy (6863)

Postby winston » Fri Mar 24, 2017 8:13 pm

Huishan Dairy Crashes 90%: Chairman Refutes Allegations

By Shuli Ren

Huishan Dairy (6863.Hong Kong) chairman Yang Kai has refuted allegations published on Sina Finance which sparked a 90% crash in the stock before it was halted on Friday.

Yang Kai told Barron’s Asia that the slumping share price was a result of a short seller attack and Sina Finance’s allegations are all fake. He said Huishan had requested a trading halt because of Hong Kong Stock Exchange rules.

Sina Finance reported that a “major shareholder” of Huishan Dairy had moved 3 billion yuan from Huishan’s balance sheet to invest in China’s real estate markets and was unable to recuperate that money and put it back to Huishan’s accounts. Through investment vehicle Champ Harvest, chairman Yang Kai owns 73% of Huishan Dairy.

Sina Finance said that after the Muddy Waters’ report the Bank of China had found that Huishan had used fake invoices. Sina Finance’s article was very short and provided no details.

Before the trading halt, trading desks in Hong Kong were abuzz with speculation, with one suggesting a major shareholder had received a margin call.

A second desk said that major shareholders are selling because they think Muddy Waters’ fraud claims are not unreasonable.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... ers-cheer/
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Re: China Huishan Dairy (6863)

Postby winston » Fri Mar 24, 2017 8:42 pm

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Huishan Dairy, Muddy Waters Target, Sinks 85% in Hong Kong

by Sofia Horta E Costa and Kana Nishizawa

Sudden plunge erases $4.1 billion in Chinese company
Muddy Waters said in December it was shorting the stock

Chairman Yang Kai said online speculation its largest shareholder misappropriated 3 billion yuan ($435 million) to invest in Shenyang real estate are untrue, Netease reported, citing a phone interview.


Source: Bloomberg

https://www.bloomberg.com/news/articles ... rket-value
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Re: China Huishan Dairy (6863)

Postby winston » Sat Mar 25, 2017 8:32 am

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China Huishan Dairy shares plunge as much as 91 per cent

Dairy company plunges in Hong Kong trade on Friday, one day after it held closed-door talks with 23 major local lenders

On Thursday, representatives of Huishan were called into a meeting with 23 of its major local creditor banks, including ICBC, Bank of China, Bank of Communications and China Development Bank, according to a copy of a notice issued by the finance administration office of Liaoning province seen by the Post.


“Huishan has been constantly raising capital via sale-leasebacks on its assets over the last year with little-known financial leasing companies, which suggests the company is quite desperate for cash”


The company has 1.38 billion yuan of debt maturing in October 2018


The stock plunge could also bring paper losses to Ping An Bank, a unit of Ping An Insurance, which issued a HK$2.1 billion loan to the dairy farm operator in late 2016 collateralised by 25 per cent of Huishan’s outstanding shares.


Source: SCMP

http://www.scmp.com/business/companies/ ... -suspended
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Re: China Huishan Dairy (6863)

Postby behappyalways » Sun Mar 26, 2017 7:30 pm

Huge Plunge in Shares of China Huishan Dairy May Have Been Triggered by Leak of Meeting
http://www.caixinglobal.com/2017-03-25/101070458.html
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Re: China Huishan Dairy (6863)

Postby behappyalways » Wed Apr 05, 2017 10:17 pm

Financial Problems Haunted Huishan Dairy Before Disaster Struck
http://www.caixinglobal.com/2017-04-04/101074297.html
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