[TechWeb] May 14th news reports, vip.com in overseas short sellers about its financial fraud made a positive response, pointed out that short sellers do not understand vip.com’s business model, has no basis, there are a lot of discrepancies with the facts.
Beijing last night in Forensic Research research company Mithra (hereinafter referred to as MFR) in May 12th published an article entitled "vip.com: your earnings we do not buy" short report made a response.
in response to the beginning pointed out: "vip.com believes that these accusations are unfounded, there are a lot of mistakes, no facts to support speculation and misunderstanding out and out of our business model. The company has been to the board of directors and the independent audit agency informed the short report, however, we are going to the first few days for some of the key error report clarification."
in the "revenue recognition" (revenue recognition), according to the report questioned vip.com in that revenue method is undeserved, vip.com pointed out that the company has disclosed in the 2014 annual report of 20-F and detailed instructions, accounting is appropriate.
in the "inventory accounting statistics" (inventory accounting), according to the report that vip.com managed to confuse the inventory (inventory-held-on-consignment) and purchase inventory (purchased inventory) said, vip.com said, MFR this conclusion is the wrong assumptions based on.
in the "other receivables", the report said vip.com "other receivables" (other receivables) an unusually high level of growth in said, vip.com said that the file 20-F in the 2014 annual report of the company notes 5 (Note 5) have been made to explain, mainly because VAT should increase receipts and savings (increase of deposits and VAT receivables).
in the "capital expenditure", according to the report accused vip.com of deliberately exaggerated and accelerate the capital expenditure issue, vip.com said the company at the end of 2012, at the end of 2013, at the end of 2014 the size of capital expenditures were $12 million 400 thousand, $22 million 200 thousand, $25 million 600 thousand, growth is mainly due to the need to expand the warehouse and logistics and other related infrastructure. It has been disclosed before.
in the "cash flow", the report on the vip.com cash flow is not driven by the size of the profit, and accounts payable and and (accounts payables accrued expenses) driver said "