Breaking today, Lukin's COO (Jian Liu) said to have fabricated sales in a massive overstatement of 2019 revs.
But by how much?
Previously stated sales in 2019 were 2.9 billion yuan ($413 million).
Overstated 2019 sales by about 2.2 billion yuan ($310 million).
So essentially... -75.86 % of their revenue was overstated!
Incredibly surprising... but this goes to show how easy it is to obfuscate information and not have someone follow up with fundamental research. Worrisome for the region as well.
But by how much?
Previously stated sales in 2019 were 2.9 billion yuan ($413 million).
Overstated 2019 sales by about 2.2 billion yuan ($310 million).
So essentially... -75.86 % of their revenue was overstated!
Incredibly surprising... but this goes to show how easy it is to obfuscate information and not have someone follow up with fundamental research. Worrisome for the region as well.
Pierce Crosby
GM, Americas @ TradingView
GM, Americas @ TradingView