China's SenseTime falls, says short-seller report contains unfounded allegations

SenseTime

28/11/2023 05:41

** Shares of China's artificial intelligence (AI) software
developer SenseTime Group Inc  0020.HK  slide as much as 9.7% to
HK$1.30, their lowest since Nov 4. 2022, after a short-seller
report accused the firm of inflating revenue 
    ** Stock on track for the biggest one-day pct drop since
April 21, if losses hold; biggest pct loser in Hang Seng Tech
Index  .HSTECH  and index on information technology firms
 .HSCIIT  
    ** Grizzly Research says it believes SenseTime was
artificially inflating revenue through revenue fabrication
schemes 
    ** SenseTime says the research report by Grizzly published
on Nov. 28 is without merit and contains unfounded allegations
and misleading conclusions and interpretations
    ** "It also shows a lack of understanding of the company’s
business model and financial reporting structure, and a lack of
thorough reading of the company's public filings" - SenseTime
    ** SenseTime says it is reviewing the allegations and
considering the appropriate course of action to take to
safeguard the interests of all shareholders
    ** Hang Seng Composite Index on information technology firms
 .HSCIIT  falls 1.2%, Hang Seng Tech Index  .HSTECH  slips 0.3%,
Hang Seng Index  .HSI  down 0.6%
    ** Stock down 38.7% YTD
    

 (Reporting by Donny Kwok. Editing by Sam Holmes)
 ((donny.kwok@thomsonreuters.com))