Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Aug. 10, 2022 (GLOBE NEWSWIRE) — The Portnoy Law Firm advises MINISO Group Holdings Limited (NYSE: MNSO) investors that the firm has initiated an investigation into possible securities fraud and may file a class action on behalf of investors. MINISO investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: firstname.lastname@example.org, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The investigation focuses on MINISO’s statements about its core business model and use of its IPO proceeds.
More specifically, MINISO has repeatedly attributed its fast growth to its MINISO Retail Partner model and claimed the model is an asset-light, high-margin network of thousands of allegedly independent franchise stores who shoulder capital expenditures and operating expenses while selling company-branded products.
The company’s claims came into serious question on July 26, 2022, when analyst Blue Orca Capital published a scathing report accusing MINISO of lying about the model. In contrast to MINISO’s claims, Blue Orca determined that the company itself owns and operates about 40% of MINISO stores and, in addition, hundreds of stores are registered to company executives or persons connected to its Chairman. Blue Orca attributed MINISO’s secret ownership and operation of stores to years of declining store revenues and profits and its slashed franchise fee, together indicating “a retail brand in stark decline.”
Blue Orca also concluded that, shortly after MINISO completed its $600 million IPO in October 2020 “that MINISO’s chairman, Ye Guofu, bilked hundreds of millions of freshly raised capital from public investors through a series of crooked transactions revolving around the purchase and construction of a massive headquarters in China.”
This news sent the price of MINISO American Depositary Shares sharply lower on July 26, 2022.
Most recently, on July 29, 2022 Blue Orca responded to MINISO’s purported July 28 “rebuttal,” and observed in part that the company (1) simply ignored Blue Orca’s finding that the company owns and operates about 40% of MINISO stores, and (2) admitted its chairman Ye Guofu did not contribute funds to the RMB 346 million deposit to purchase land for MINISO’s headquarters.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
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