Article: ACM Research (ACMR): Dirty Business

Article - Media, Publications

ACM Research (ACMR): Dirty Business

J Capital, 08 October 2020

We believe ACM Research (ACMR) is a fraud, over-reporting both revenue and profit. What real profit the company has is apparently being siphoned off to related parties.

ACMR faces a cash crunch even with a reported $86 mln in the bank. ACMR is borrowing at high rates of interest, and the company is pushing to IPO substantially all the company assets in Shanghai in order to raise cash. This will significantly dilute U.S. investors.

We visited ACMR sites in China, Korea, and California, accessed credit reports on ACMR subsidiaries, reviewed ACMR’s exchanges with Shanghai regulators, and conducted more than 40 interviews.
Continue reading “Article: ACM Research (ACMR): Dirty Business”

Article: ACM Research accused of fraud by short-seller J Capital

Article - Media, Publications

ACM Research accused of fraud by short-seller J Capital

ACMR, 08 October 2020

In a short report published on its website, J Capital Research’s Anne Stevenson-Yang said “We believe ACM Research (ACMR) is a fraud, over-reporting both revenue and profit. What real profit the company has is apparently being siphoned off to related parties… We have evidence that undisclosed related parties are diverting revenue and profit from the company Key means by which ACMR tunnels over-reported profit out of the company may be through about $20 mln in overstated inventory costs and through cash that is inflated or just compromised. We think least $11 mln in warranty and service costs are understated.
Continue reading “Article: ACM Research accused of fraud by short-seller J Capital”

Article: Novagold slams law firm for ‘malicious and false’ claims on Donlin gold project

Article - Media, Publications

Novagold slams law firm for ‘malicious and false’ claims on Donlin gold project

Nahum Asher, 09 July 2020

According to the complaint, throughout the Class Period, Defendants misrepresented and concealed that (1) ACM Research’s revenues and profits were diverted to undisclosed related parties, and (2) consequently, the company materially overstated its revenues and profits.
Investors allegedly began to learn the truth on Oct. 8, 2020, when J Capital Research published a report entitled “Dirty business,” bringing ACM Research’s reported financials into serious question.
More specifically, J Capital concludes ACM Research is a fraud, over-reporting both revenue and profit. According to the report, “ACMR reports industry-beating gross margins of 47%” but “[w]e believe the real gross margins are half at the best.” J Capital also concludes revenues are overstated by 15-20%, undisclosed related parties are diverting revenue and profit from the company, the key means by which ACMR tunnels over-reported profit out of the company may be through about $20 million in overstated inventory and through cash that is inflated or compromised, and warranty and service costs are understated by at least $11 million.
Continue reading “Article: Novagold slams law firm for ‘malicious and false’ claims on Donlin gold project”