Frog Prince shares 25% hit

Yesterday, Fujian Day of the brand Frog Prince (01259. HK) was questioned by Graus (Glaucus), the US short agency. The news led to the Frog Prince's rush, and in the afternoon suspension. HK $4.66, down 25.68%, before suspension. Yesterday, Glaucus published a report that the Frog Prince sales data is higher than the third party data, there is suspicion of fraud, and refers to the Nielsen retail data, the mainland government on the consumer brand concern research, public tax records, as well as the State administration of industry and commerce data, the Frog Prince in Child moisturizing liquid sales, The tax records, the amount of sales and the actual brand name are exaggerated, with a real sale of less than 25% of the company's claims, with a share value of only 0.75 to HK $0.98. Glaucus pointed out that the Frog Prince Sales of the best product child moisturizing fluid, last year's sales of 723 million yuan, accounting for 46% of the total income, and after the distributor price increase sales, means that retail sales last year at least 1.205 billion yuan. However, according to Nielsen retail data, its children's moisturizing fluid last year only 135 million yuan in sales. In addition, although the company claims that its child lotion is the first brand in China, while the child shower gel and washing shampoo are the second largest brand, Glaucus according to the Chinese government's survey, less than 7% of consumers know the Frog Prince's brand, meaning that their children's bathing and moisturizing category of the market awareness is not small In addition, although the Frog Prince claimed to pay more than 10 million yuan tax every year since 2008, but according to the government of Zhangzhou tax records, only last year, the Frog Prince has paid more than 10 million yuan tax, 2008-2011 are absent. Glaucus, the Frog Prince said last year that its top five customers accounted for 14.2% of sales, or 233 million yuan, but according to the State administration of industry and commerce information, the four major customers last year, the average purchase activity of only 11 million yuan. Glaucus also raised other points of doubt, including its sales growth of 7 times times faster than its peers and the lack of credibility of the 80% per cent return on capital. The agency said there was ample evidence that fraud exaggerated sales figures, Strongly suspected of the cash balance of HK $0.97 per share, and it is expected that the Frog Prince will sell no more than 390 million yuan in 2012, with 1.5 times times the actual value of the Frog Prince as HK $749 million, or HK $0.74 per share, and even if the assumption is relaxed, shareholders can take back 25% cash, The value of the Frog Prince will increase from HK $0.74 to HK $0.98, which has shrunk before the suspension. Indeed, as early as May this year, the seemingly uplifting performance of the Frog Prince was questioned, questioning its operating problems and selling water. The Frog Prince landed at HKEx in 2011, when the share price of HK $2.6, the increase in the birth rate of the baby last year, and the increase in the quality of life for children, increased demand for child care products, and led to a repeat of the stock price, which was set to be listed in Friday.To a new high of 6.76 yuan. Short-selling organization Glaucus in the Hong Kong market sniper fraud Private enterprises record: This year January 28 issued a report questioning the financial data of CICC, making it the first to encounter the CSRC to apply for liquidation of the company. Glaucus last year had sniper Western cement, although the West mud suspension and response, and to refute the allegations, but the stock price is still after the comprised after the flop, and then has been low up and down. This January, Glaucus research director Soren Aandahl suggested that the transparency of Hong Kong's legal environment and information could easily breed fake private enterprises.