Clarification Announcement Issued to Refute Point by Point To Ensure a Correct Understanding of the Group
HONG KONG, Sept. 29, 2014 /PRNewswire/ — Shenguan Holdings (Group) Limited ("Shenguan Holdings" or the "Company", HKEx stock code: 829, together with its subsidiaries, the "Group"), the largest manufacturer of edible collagen sausage casing products in China, today issues a clarification announcement ("the Announcement") to refute the report issued by Emerson Analytics Co. Ltd on 2 September ("the Report"). The Report contains malicious and groundless allegations and comments concerning the Group’s business and financial operations. The purpose of the Announcement is to clarify the facts, correct the errors in the Report and ensure a correct understanding of the Group.
The Group deplores the use by the Report of unsubstantiated and misleading statements as a basis to revise the Group’s actual financial data and to make baseless allegations as to the integrity of the Group and its management and to attempt to sully the Group’s reputation. The Report contained a disclosure by the Entity that "We and/or our associates/partners may have long or short positions in the equities and/or their derivatives at the time of publication of our reports, and we and/or our associates/partners may maintain or change our positions at any time."
The Group is of the view that the allegations and estimates in the Report were based on a fundamental mistake in that the allegations against, and estimations about, the Group in the Report were drawn from a comparison of the Group with another seven companies in the collagen sausage casing business that are not comparable to the Group. Five of them, which are Chinese companies operating in China, are not comparable to the Group in terms of experience, financial strength and scale of operation. The other two are foreign companies that operate primarily outside China with product types and production bases that are different from those of the Group.
The directors of the Company wish to reiterate that the Group adheres to the principle of "technical innovation and stringent management with integrity", and focuses on its business of collagen casing with the goal of achieving good economic benefits. The Company will continue to strive to maximize the returns for its shareholders, as it always does.
For more details, please refer to the Announcement dated 26 September 2014.
The Company will resume of trading in its Shares on the Stock Exchange with effect from 9 a.m. on 29 September 2014.
About Shenguan
Shenguan Holdings is the largest manufacturer of edible collagen sausage casing products in China. As at 30 June 2014, the Group had three production bases located in Fudian, Wangfu and Sifu in Wuzhou City, Guangxi. Its shares are listed on the Main Board of the Stock Exchange of Hong Kong Limited under stock code 829.
For further information, please visit Shenguan Holdings’ website: http://www.shenguan.com.cn/