[서울신문] ‘Seohak Ant’ invested 600 billion won, China’s Yihang stock soared 67%

Lee Hang’s side claims that short seller report is deceptive

China’s drone taxi company EHang, which is controversial over a fake contract, is showing a striking stride in the New York stock market, with stock prices fluctuating nearly 70% a day.

Lee Hang shares, listed on the US NASDAQ, ended at $77.73, soaring 67.88% on the 17th (local time). The previous day’s regular length plunged 62.7% to $46.30.

Lee Hang, headquartered in Guangzhou, China, immediately refuted the report of a short seller who raised suspicion of a fake contract. In a statement, Lee Hang refuted the fake contracts and allegations of fraud raised by Wolfpack Research, an investment information company.

In a statement, Lee Hang condemned Wolfpack’s report as “deceptive” and “full of misrepresentation and unconfirmed statements in numerous errors.” Meanwhile, Lee Hang said that it is considering taking appropriate and necessary actions to protect the interests of shareholders.

However, Lee Hang did not specifically refute what information or statements of Wolfpack Research were wrong. According to the South China Morning Post (SCMP), spokeswoman Lee Hang said the company will release concretely refutable data sooner or later.

Wolfpack Research pointed out that Kunxiang, a Chinese company that signed a contract with Lee Hang, was improvised. He also revealed that he collected evidence of the fraud situation through Kunxiang’s office and site photos. The report contained 33 pages of Lee Hang being a company that manipulated fake contracts and revenue sources. The drone taxi assembly facility did not have the minimum equipment and manpower, and the place called Kunshang, which signed a contract to purchase a drone worth 500 billion won with Lee Hang, claimed that it was actually a’paper company’.

It is also a false allegation that Lee Hang was approved for flight in the United States, China and Europe, the report said. As a result of checking with aviation regulatory agencies such as the United States and Canada, it was revealed that it was only a flight test permit that designated altitude, time, and region, and was not related to the commercial operation of manned drone taxis that actually transport passengers.

A drone taxi developed by Lee Hang was shown at a drone delivery and taxi demonstration event co-hosted by the Ministry of Land, Infrastructure and Transport in Korea in November last year. At that time, Lee Hang’s two-seater drone taxi flew over the Han River for about 7 minutes with a rice kiln.

The company’s stock is also popular with’Seohak ants’ investing in overseas stocks, and is a stock held by domestic individual investors. As of the 16th, the balance of Lee Hang Holdings stock held by domestic investors held by the Korea Securities Depository amounted to $550 million (about 600 billion won). This is a scale that ranks in the top 10 among overseas stocks held by domestic investors.

Reporter Yoon Chang-soo [email protected]