Real Nutriceutical Group denies allegations of falsified sales
It cited the author’s disability to conduct a valid analysis.
Real Nutriceutical Group said:
The Company noted that an article entitled ‘‘Allegations of Falsified Sales, Real Nutriceutical Group responds by stating that the financial information were audited and approved” has appeared on the internet in the Daily Economic News on 15 January 2013.
The Article quoted statements from an internet blog, where the identity of the author has been intentionally blocked by its host. In summary, those allegations include that
(a) the Company’s sales were falsified;
(b) Two major customers/distributors have undisclosed relationship/connection with the Company;
(c) The level of the Company’s borrowings and the related interest rate were unreasonable;
and (d) The Company’s spending on capital investments/technology development was not justified as the Company’s business does not involve significant technological development.
The Company clarifies and reiterates that each of the Allegations are false and not substantiated by any fact, and seriously questions the credibility of the statements made in the internet blog.
These speculative Allegations simply reflect the author’s disability to conduct a valid analysis on the Company’s business, industrial trend and basic accounting principles. The Company reserves its rights to claim against such person(s) that spread unsubstantiated rumours relating to the Company.
The Article also refers to recent decrease in the shareholding of Mr. Wang Fucai, the Chairman of the Company, in the Company.
The Company clarifies that prior to the listing of the shares of the Company on the Stock Exchange in 2010, the Chairman granted options 2% of the share capital of the Company to employees of the Company.
This information was disclosed in the prospectus of the Company in 2010, and the recent decrease in the Chairman’s shareholding in the Company was the result of exercise of such options by the Company’s employees.