China-Biotics (CHBT) Falls on Negative Report

China-Biotics, Inc. (Nasdaq: CHBT) is deep in the red following a negative mention from Citron Research today. Shares are down about 9.8 percent at mid-day.

Citron cites another research document, from China Economic Review, which can be accessed here.

Key points made in the report include:

• Distribution channels for retail products are wildly overstated, and the products themselves are not popular enough to justify reported revenue figures;
  
  
• The firm's Shanghai production facility isn’t large enough to generate the implied output of retail products;
  
  
• Published lists of bulk additives customers are false; and
  
  
• Revenue generated from the bulk additives business is exaggerated.

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