Hall of Shame

Information Technology

Linklogis Inc (9959 HK)

Year: 2021

Linklogis Inc is a China-based investment holding company principally engaged in providing supply chain finance technology solutions and innovative data-driven emerging solutions. Its supply chain finance technology solutions include Anchor Cloud and financial institution (FI) Cloud. Its supply chain finance technology solutions help digitalize the process of supply chain payment and financing. Its innovative data-driven emerging solutions include Cross-border Cloud and small and medium-size enterprise (SME) Credit Tech Solution. The Company conducts its businesses in domestic market and overseas markets.

The Company listed on the Hong Kong Stock Exchange (HKEx) on April 9, 2021 and raised HK$9.16B in its IPO.

July 22, 2021 Short sellers, Valiant Varriors, released a short report on Linklogis; "Linklogis (9959.HK): A supply chain of lies".  It was short on the Company as it believed that the Company:

  • Lied about overexposure to real estate: Linklogis is the backdoor that developers use to skirt the regulations and they have blatantly and publicly downplayed that.
  • Blatantly disregarded and violation of Notice 205: At 80x debt-to-equity, the company has far exceeded the regulatory limit for commercial factoring enterprises.
  • Was a massive financial risk from hiding tens of billions in bridge loans and related-party transactions.
  • Had overstated revenues: Questionable accounting practices in the company led to the frequent change of auditors running up to its IPO.
  • Exaggerated technology capabilities and actual use of manual labour: a closer look at the company’s R&D spend and leadership team raised many questions about its credibility and valuation as a tech company.
  • Is a tax fraud: The consequences of underreporting tax was another ticking time bomb that would deal a severe blow to future earnings

Valiant Varriors concluded the report saying that Linklogis' purported supply chain financing system was nothing more than a well-designed and elaborate pack of lies built
using sophisticated deception tactics.  That it was nothing more than a glorified mortgage broker and over-valued in the market. It added that with zero cutting-edge technological capabilities, an over-reliance on the real estate segment for its revenues, management team with questionable integrity, and an increasingly marginalized business model, it should be valued at no more than 10-12 times forward P/E; a 90%+ downside.

July 22, 2021 Linklogis responded to the report in a Clarification Notice. The Company said that the allegations in the report were groundless. It added that the Report contained various misrepresentations, false allegations and obvious factual errors, and the logic employed in the Report is flawed. In an eight page response, it addressed the allegations. 

July 23, 2021 In a rebuttal to the Linklogis response, Valiant Varriors issued a short article; "Fundamentally, is this a financing company or a technology company?". It stated that the management had chosen to beat about the bush and avoid providing any further clarification on the issues at hand. In its rebuttal, Valiant Varriors listed the following points:

  • High concentration on real estate was not addressed,
  • Management was obviously confused and contradicting themselves on financial risk
  • Asks why as a tech company it was getting into a debate with gearing ratios?
  • Overstatement of revenues: a convenient deflection to the accountants
  • Questions whether Linklogis was still trying to prove it had good tech?
  • Linklogis’ tax evasion issue might just open the biggest can of worms

Valiant Varriors ends its article saying that Linklogis was in deep trouble and this was further proven by the quality of responses to the first report. It believed Linklogis was merely a heavy asset lending business trying to fit into a nimble Fintech outfit.

Valiant Varriors: Linklogis Inc. - A supply chain of lies, 20 Jul 2021
Linklogis Inc: Clarification, 22 Jul 2021
Valiant Varriors: Fundamentally, is this a financing company or a technology company?, 23 Jul 2021
Linklogis Inc: Prospectus, 26 Mar 2021


Company From TO
KPMG (HK) 26-Mar-2021 -


IPo Role IPO Party
Joint Lead Managers-Books CLSA Ltd
China International Capital Corp HK Securities
China Renaissance Securities HK Ltd
Citigroup Global Markets Asia Ltd
Goldman Sachs (Asia)
Joint Lead Managers-No Books CCB International Capital Ltd
China Merchants Securities (HK) Co Ltd
Futu Securities International Hong Kong Ltd
Huajin Securities International Ltd
Co-Manager(s) Valuable Capital Ltd
Global Coordinator(s) China International Capital Corp HK Securities
Citigroup Global Markets Asia Ltd
Goldman Sachs (Asia)
Transfer Agent(s) Maples Fund Services Cayman Ltd
Registrar(s) Maples Fund Services Cayman Ltd
Tricor Investor Services Ltd
Auditor(s) KPMG
Legal Adviser to the Issuer(s) Commerce & Finance Law Offices
Davis Polk & Wardwell/Hong Kong
Harney Westwood & Riegels
Legal Adviser(s) to the Manager(s) Haiwen & Partners
Skadden Arps Slate Meagher & Flom
IPO Sponsor(s) China International Capital Corp HK Securities
Goldman Sachs (Asia)


(CAC/MAC Chairman / Member Audit Committee  -  NC Nomination /Governance Comm.  -  CC Compensation/Remuneration Committee)

Type Name Roles From To
Executive Song Qun Chairman, CEO, MCC, MNC 13/Mar/18 -
Executive Ji Kun President 13/Mar/18 -
Executive Chau Ka King Vice Chairman, Chief Risk Officer 13/Mar/18 -
Non-Executive Lin Haifeng   15/Oct/19 -
Non-Executive Zhang Yuhan   9/Oct/18 -
Non-Executive Zhao Yongsheng   27/Oct/20 -
Independent Gao Feng MAC, CCC, CNC 26/Mar/21 -
Independent Tan Huay Lim CAC 26/Mar/21 -
Independent Chen Wei MAC, MCC, MNC 26/Mar/21 -
Senior Management Zhong Songran CTO 18/Jul/16 -
Senior Management Li Xiaogang VP 7/May/19 -
Senior Management Zhao Yu CFO 5/May/19 -
Senior Management Wang Yihan Joint Comp. Sec., Senior Legal Expert Jun/2019 -
Senior Management Wong Keith Shing Cheung Joint Company Secretary 7/Jan/21 -