Hall of Shame

Consumer Staples

Vitasoy International Holdings Ltd (345 HK)

Year: 2020

Vitasoy (Chinese: 維他奶)  is a Hong Kong beverage company. It hosts a brand of beverages and desserts named Vita. Founded in 1940, it now operates under the Vitasoy International Holdings Limited. Its headquarters are in Tuen Mun, New Territories, Hong Kong. Vitasoy products were centered on the high-protein soy milk drink that the company first produced. Over the years the company expanded into a wider variety of beverages. Some of them (such as fruit juice, milk, tea, soft drinks, water, and tofu) were given the derivative brand name "Vita". It listed on the Hong Kong Stock Exchange in March 1994 raising HK$290.02M in it's IPO.

January 16, 2020 Short seller, Valiant Varriors, issued a report "Vita - Sell". In the report Valiant Varriors said that Vitasoy Chinese and Australian profits and Capital Expenditure have been overstated, thus inflating its margins while underplaying the impact of rising costs on its bottom line. It also questioned Vitasoy's capital expenditures, pointing out the big discrepancy between its reported numbers and filings to China's State Administration for Industry and Commerce. The report also questioned Vitasoay's poor cash flow.

January 16, 2020 Vitasoy released an announcement vigorously denying the allegations contained in the report and considered them to be inaccurate and misleading.

January 17, 2020  Valiant Varriors replied to the announcement with a short report saying every statement in the report is backed by hard, irrefutable evidence.

January 17, 2020 Vitasoy released rebuttal to both reports covering the main allegations.

January 21, 2020  Valiant Varriors responded to Vitasoy's rebuttal with another short report saying it raised more questions than answers and that the most salient points in it's report remained unanswered.

Valiant Varriors: Vita Sell, 16 Jan 2020
Vitasoy:  Announcement, 16 Jan 2020
Valiant Varriors: Short Report, 17 Jan 2020
Vitasoy:  Rebuttal, 17 Jan 2020
Valiant Varriors: Response to Rebuttal, 21 Jan 2020
Vitasoy:  Annual Report 2017
Vitasoy:  Annual Report 2018
Vitasoy:  Annual Report 2019