CKH (0001) vigorously denies the innuendo of the report of short-selling institution GMT.

CKH suggests, the group’s audited financial statements are strictly in compliance with applicable Hong Kong Financial Reporting Standards. Matters relating to the Group’s reported earnings referred to in the report have all been fully disclosed in the group’s audited financial statements. With respect to the de-consolidation of debt associated with assets held for sale also referenced in the report, these are likewise reported fully in accord with applicable accounting standards and have been reviewed with credit rating agencies. These reviews are fully reflected in the ratings as assigned by the agencies.

CKH believes, the report of GMT appears selective, biased and materially misleading. It singles out non-cash earnings items but fails to mention non-cash losses also reported in the relevant periods. It mentions debt de-consolidated in 2018 financial statements but fails to mention debt brought on balance sheet due to acquisition activity in the period.

GMT released a report yesterday suggesting that CKH may be concealing HKD 57.7 billion of debt, in order to have a higher market rating and access to cheaper credit than it would have.