U.S.-based short seller Grizzly Research issued a short report Thursday on ZTO Express Inc (NYSE: ZTO), one of the leading players in China’s domestic logistics market.
ZTO fraudulently engineering its financial statements to achieve standout margins, the short seller said, alleging the company has been underreporting revenue and costs to falsify its financial results. In a tweet, Grizzly said they believe the company’s financials are “fake” and that executives could be stealing.
The short report by Grizzly Research said ZTO’s SAIC filings, which are the financial statements submitted to the State Administration for Industry and Commerce in China, present a completely different reality than its SEC financial statement.
Benzinga has contacted ZTO for comment on the short report. ZTO, which was listed on the New York Stock Exchange in 2016, has not publicly responded to Grizzly’s allegations.
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