SKIPPACK, Pa., May 27, 2015 /PRNewswire/ -- GeoInvesting, LLC ("GeoInvesting" or "Geo"), a research company that specializes in providing high quality insights on equities both in the China and U.S. spaces, today announced that it has released a research report that calls into question specific allegations of fraud made in critical reports about China-based U.S. listed company Vipshop (VIPS) over the past few weeks.
In the report, released today and available here, GeoInvesting questions some of the primary critical points that have been used to allege fraud against Vipshop. GeoInvesting's findings, based on primary sourced evidence and on the ground due diligence, differ greatly from those alleged in critical reports of the company. Specifically, the report's conclusions include:
- The allegation that VIPS doesn't "own close to 500,000 square meters of logistics centers and office space in Tianjin" appears to be based on a glaring misrepresentation of the company's 2014 20-F
- Contrary to critical report findings, Geo's diligence found that VIPS does in fact lease warehouses from Goodman in Tianjin, and also owns a brand new separate logistics center next door
- VIPS' massive new logistics center in Ezhou clearly exists, despite critical reports claiming the company has not yet funded it.
- Research indicates that VIPS' fixed assets are likely exponentially higher than critical reports claim. In the course of Geo's research, it saw no apparent reason to doubt the company's disclosed USD $308 million in property, plant and equipment.
- Sales volumes and traffic checks may have been done at the least reliable time: when VIPS was in the process of moving and building new logistics centers.
- While other reports had trouble finding VIPS' small loans businesses, Geo found two subsidiaries and provided their pertinent records.
- Geo questions the value of pointing out that a small portion (less than 0.5%) of the company's sales – two years ago - could have been imported.
The report, in its entirety, can be read here. To receive exclusive notice of further reports from GeoInvesting, as well as to access its archive of research and insights, readers can visit www.geoinvesting.com to become part of GeoInvesting's investment community.
About GeoInvesting, LLC
At GEO, our focus is on providing high quality stock market research tools and insights on U.S. mid and micro-cap equities and performing in depth due diligence on Chinese companies trading in China and the U.S. Since our inception, we have come to be known by our GeoBargain selections, which are a group of "bargain" priced value stocks that meet our rigorous screening criteria and that we believe can outperform their peers. We are also the leading research boutique charged with helping investors navigate the treacherous China equity universe.
Co-Founder and Vice President, GeoInvesting, LLC
SOURCE GeoInvesting, LLC