Singapore-listed Sino Grandness rejects claims made by short seller

Mainboard-listed Sino Grandness Food Industry Group on Thursday refuted claims made about the company’s health in a report that was circulated on the internet.

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Singapore-listed Sino Grandness rejects claims made by short seller

23 October 2014

Mainboard-listed Sino Grandness Food Industry Group on Thursday refuted claims made about the company’s health in a report that was circulated on the internet.

In a statement to the Singapore Exchange, the mainboard-listed company’s chairman and chief executive officer Huang Yupeng said the report dated 4 September 2014 contained negative statements relating to the sales and financial position of Sino Grandness and its subsidiaries.

The unnamed authors of the report claimed to have short and other positions in the company, and “stand to realize gains in the event that the price of the stock decreases”.

The report further states that, “the authors make no representation or warranties as to the accuracy, completeness or timeliness of the information, text, graphics or other items contained in this report.”

Sino Grandness strongly rejects the baseless and unsubstantiated assertions made in the report and will seek legal advice in relation to the report, the statement said.

The company said it wishes to inform shareholders that the group is in a sound financial position and had complied with all the statutory and listing requirements. It also said that it intends to release its third quarter 2014 financial results on or about 14 November.

In a separate statement, Sino announced that under a drive to raise its internal production capacity, its new juice production facilities in Hubei province started production in October, and is expected to have a maximum production capacity of about 240,000 tons of juice a year.

The Hubei plant is expected to benefit the group by gradually reducing its outsourcing costs and managing its production volume more efficiently.

Sino Grandness also announced that it had successfully secured “encouraging” indicative orders and engaged new distributors for the Chongqing Trade Exhibition.

Said Mr Huang: “Although the Chongqing Trade Exhibition is not as big as the annual trade exhibition held in Chengdu in Sichuan province, we are still pleased with the outcome of the Chongqing Trade Exhibition with its high turnout by existing and new distributors, as well as approximately RMB300 million (S$62.4 million) in indicative orders being secured, compared to approximately RMB390 million in indicative orders secured in March 2014 in Chengdu as announced previously.”

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