By Martin Mou
China Feihe Ltd. Wednesday said allegations by a short seller that the Chinese dairy company has overstated some of its financials were inaccurate and misleading.
Short seller Blue Orca Capital alleged that Feihe overstates its infant-milk-formula revenues and understates its operating costs, such as advertising and labor expenses.
Feihe said it expects a 40% increase in revenue for the first six months of year, mainly helped by sharply higher sales volumes for infant-milk formula.
Feihe shares were last 1.3% lower at HK$15.62.
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