What is the clarification announcement issued by Hua Min Holdings?

A clarification announcement was quickly issued this morning to resume trading. The announcement responded to the query in detail in muddy water PPT, and said that a complaint had been submitted to the Hong Kong Securities Regulatory Commission. The company's share price surged 26% today, rising at 0: 40 1 13.43% to HK$ 6.84.

At 2pm on June 7th, Carson Block, the founder of Muddy Waters Company, released PPT at SOHN Forum in Hong Kong, raising five questions about Hua Min Holdings: First, Hua Min Holdings has undisclosed debts, and the company's profitability and cash flow are inconsistent with the company's disclosure; Second, the tax information of Hua Min Holdings is inconsistent; Third, the comprehensive net profit of Hua Min Holdings Macau subsidiary exceeds 50%, which is either a manifestation of tax evasion or an exaggeration of profits; The fourth is to question the sales growth data of Hua Min Holdings in Chinese mainland; The fifth is to question the export sales data of Hua Min Holdings.

On the morning of June 9th, Hua Min Holdings issued a clarification announcement, claiming that the allegations in Muddy Water PPT were groundless, including various misrepresentations, malicious false accusations and obvious factual errors about the Group. Hua Min Holdings stressed that the company has no undisclosed financial debts, which is also the most worrying point in the muddy water accusation.

Hua Min Holdings said it had instructed its legal counsel to formally sue Muddy Waters with the Hong Kong Securities and Futures Commission. It is also confirmed that 63.5 1% of the shares held by the controlling shareholder are not pledged to a third party.