Muddy water released the fifth part of the short Anta report, the report said Anta sports production costs transferred from itself to the supplier, the financial situation is difficult to trust. Subsequently, Anta issued a strong denial of the accusation in the report, and the related allegations were short selling agencies' opinions. The allegations were not accurate and misleading.

Tencent securities July 22nd hearing, Anta sports response to muddy water short selling report: strongly denied the accusation in the report, the related allegations are short selling agency's opinion, the allegations are not accurate and misleading.

Anta sports announced that in July 21, 2019, Muddy Waters Capital LLC ("MuddyWaters") issued a research report, which contained a number of allegations about one of the suppliers and group business of the group. The board strongly denied the accusation in the report, saying the allegations were inaccurate and misleading.

In addition to those disclosed above, the board of directors recognizes and does not know any other information that must be announced to avoid false market conditions of corporate securities or any insider information to be disclosed under part XIVA of the securities and Futures Ordinance (Chapter 571 of the Hongkong law).

Most importantly, shareholders should be aware of the relevant allegations as short selling agencies, and the interests of short selling organizations may not be consistent with shareholders' interests in general, and the allegations may be aimed at deliberately combating confidence in the company and its management and damaging the reputation of the company. Therefore, shareholders should be cautious about the allegations. The company reserves the right to take legal action against persons responsible for MuddyWaters and / or related allegations.

In July 22nd, muddy water released the fifth part of Anta sports short report. According to the report, the biggest third party supplier of Anta sports may be a counterparty who is secretly controlled by Anta sports. Muddy water believes that Anta sports will shift production costs from itself to the supplier, and the financial situation is hard to trust.

In the report, muddy water focuses on the performance of Anta sports. Muddy Shui believes that Anta sports secretly controls its distributors and transfers costs to them. At present, or the biggest third party supplier of Anta sports, there exists the possibility of Anta sports secret control to transfer costs. By secretly controlling the counterparties, Anta sports excludes these entities from the audit area.

Muddy Shui believes this proves once again that Anta sports's financial position is not to be trusted. Muddy water said that without these controlled suppliers, Anta sports's financial position would drop substantially.