China Minzhong gives detailed rebuttal, says short seller was "mischievous"

CHINA Minzhong Food Corporation has given a detailed rebuttal to short-seller Glaucus Research Group's allegations of fraudulent disclosures, saying they were "mischievous and calculated to cause panic and impose maximum damage on the price of the company's securities for their own benefit".

It was the third response by the China vegetable seller since highly damaging allegations from Glaucus on Aug 26 sent its share price down as much as 51 per cent.

United States-based Glaucus had claimed that China Minzhong had fabricated sales and other figures for the years leading up to its 2010 listing, doctored its capital expenditures and boasted growth that was too good to be true.

The two responses from China Minzhong last week denied the Glaucus allegations, but were generally lacking in specifics. In the firm's latest salvo on Sept 1, every allegation was highlighted and rebutted in a 19-page response.

China Minzhong also provided 11 annexes with numerous documents like receipts, invoices, and sales contracts to support its position.

It even included over 20 photographs of its new Putian industrial park, to rebut allegations that its capital expenditure figures were artificially inflated in order to mask fake sales on its balance sheet.

China Minzhong shares had been halted since around 11am on Aug 26. Its shares will resume trading on Sept 2.