10.01.2013

Zoomlion denies allegations

Chinese crane and equipment manufacturer Zoomlion has denied allegations that it falsely inflated the sales during the first three quarters of last year's results.

Allegations emerged after a ‘concerned international investor’ sent a letter - which was supposedly accompanied by 90 pages of internal sales records - to the Hong Kong market regulator, accusing Zoomlion of ‘suspected fraud’ and ‘disclosure of false information’. It also claimed that Zoomlion uses three different categories of sales, two of which do not represent true sales.

In a statement to the Hong Kong stock exchange Zoomlion said: “All the allegations relating to the group’s financial information as reported are false, groundless and misleading. The company has never recognised potential purchase orders as sales, nor has it ever fabricated any fictitious sales in which the existing clients are disguised as some other clients, as has been alleged.”

Zoomlion also denied the existence of any document which reflects or suggest that the company’s sales are classified into different types. Since the allegations emerged shares in Zoomlion have dropped by about six percent.
Please register to see all images