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tags: [potential/short , thesis/fraud , analyst/blue-orca-capital] ...

Blue Orca Capital published on MINISO Group (NYSE: MNSO — $2.34 billion), a China-based global retailer focused on everyday household items. Blue Orca alleged that MINISO “lies about its business model” because it claims to use independent franchisees to sell its products but actually uses stores owned by company executives or related parties. For example, Blue Orca found that MINISO’s Vice President and Chief Operating Officer, Huang Zheng, owns at least ten “independent” stores based on data from the Chinese corporate registry. In addition, Blue Orca alleged that the company’s chairman siphoned money from investors through questionable real estate transactions. Blue Orca also found that the company’s stores are struggling based on conversations with former employees.

Blue Orca concluded,

“Not only does our evidence undermine the authenticity of MINISO’s reported financials, but [it] also suggests that MINISO should trade at a fraction of its current share price.”

Blue Orca’s founder, Soren Aandahl, also did a Zer0esTv interview about MINISO. The company fell 20% this week and is down nearly 75% since its October 2020 IPO.

2023-04-17 Mon 12:21 PM

Stockprice has shot up recently, but has weakened in last week.