Miniso Group Holdings Ltd.

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On July 26, 2022, Blue Orca Capital issued a short report alleging that China-based retailer, Miniso Group Holdings Ltd. ADR, made misrepresentations about its core business model, and that the Company’s chairman siphoned IPO proceeds through a crooked headquarters deal and profited from several off-balance sheet transactions.  

According to the report, Miniso claims to be an asset-light, high margin retailer with a network of over 5,000 independent franchise stores. Based on their research, Blue Orca is of the opinion "that hundreds of stores are secretly owned and operated by MINISO executives or people closely connected to the chairman,” Additional details in the report include that “at a 2017 conference in China, MINISO’S brand director said in an interview that most MINISO stores in tier one cities in China are owned and operated by the Company, and that franchising is only limited to lower tier cities. In November 2019, another article published by Chinese state-owned media reported that 40% of MINISO stores were owned and operated by the Company.”

Shares of Miniso Group Holdings Ltd. ADR stock dropped more than 15% in intraday trading on July 26, 2022.

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