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. 



  Write to Martin Mou at martin.mou@wsj.com