(Yicai Global) June 25 -- Bosideng International Holdings' shares soared after the down jackets maker rebutted a short seller's report that questioned its earnings figures and helped to lop a quarter off the company's market value yesterday.

Bonitas Research's conclusions are misleading, biased, inaccurate and irresponsible, the Suzhou-based owner of the Snow Flying and Kangbo clothing brands said in a filing to the Hong Kong Stock Exchange today. Its shares [HKG:3998] jumped 15 percent to close at HKD1.99 (25 US cents), but that still leaves the stock about 13 percent lower than it ended last week.

Bonitas' report, published yesterday, said the stock's short-term value is zero because Bosideng overstated its earnings, faking CNY807 million (USD117.4 million) in net profits since 2015, nearly triple the actual figure. The report also claimed that Chairman Gao Dekang buys affordable apparel brands and marks them up by as much as 40 times before selling them on to Bosideng within one to three years. 

Shares in Bosideng plunged almost 25 percent to HKD1.73 (22 US cents) yesterday morning before the company suspended trading. It was the biggest single-day slide in its stock price since the firm listed in 2007.

Bosideng today said it bought Jessie, Buoubuou and Tianjin Ladieswear, some of the brands that Bonitas mentioned, after examining their future earning capacities and setting profit guarantees. 

Bonitas also said that the firm disposed of CNY56 million of real assets at bargain prices. Bosideng responded that it closed deals according to agreements and has documentary support for all payments received.

The activist short-seller also claimed that Bosideng delivered historical dividends to company insiders who own the majority of its shares. The fashion firm said that it has paid proportional dividends nearly annually since going public because it considers this practice to work as proof of its strong financial performance. 

Editor: Emmi Laine