(Yicai Global) June 24 --  The stock of Bosideng International Holdings, which owns the down  clothing brands of Snow Flying and Kangbo, has slumped after a  short-seller claimed that the Chinese firm has fabricated its profits  for years.

Bosideng's [HKG: 3998]  shares fell nearly 25 percent to HKD1.7 (US 20 cents) today, the biggest  decline since going public in 2007. 

Bosideng has forged CNY807  million (USD117.4 million) in net profits since 2015 to nearly triple  the actual figure, Bonitas Research said a report released yesterday.  The Suzhou-based firm has given historical dividends to company  insiders, overpaid for acquisitions, and sold its assets at discounted  prices, it added. Bosideng has not commented on the report. 

The target firm has  trumped up transactions with third parties, possibly linked to its  chairman, to generate investor interest, the report said, adding that  the short-term value of the stock is zero.

Bosideng suspended trading  at 11.15 a.m., logging a market cap of HKD18.5 billion (USD2.4  billion). The firm's share price has nearly doubled in the past year.

The company increased its  net profit 40 percent to CNY860 million last year, according to its  earnings report. Its revenue rose 15 percent to CNY10.2 billion (USD1.5  billion). Chairman Gao Dekang is the founder of the company and the  largest individual controlling shareholder.

Editor: Emmi Laine