Esprit Is Facing A 6.16% Decline In Share Prices.

Hongkong Besieged

Esprit Holdings is likely to face an investigation by Hongkong's financial reporting regulator.

On Monday, local shareholder David Webb reported that the financial reporting Committee (FRC) might investigate the company. Subsequently, its shares fell 6.16% to HK $7.7 per share ($0.99 per share).

The financial reporting Committee (FRC) is an independent body responsible for auditing and investigating violations of listed companies.

It has the right to pfer cases to relevant regulatory bodies or stock exchanges to follow up actions.

FRC did not comment on the matter.

Si Jie said that he knew the content of the article published by Webb. The company said on the same day: "Si Jie has not received any notice from the financial reporting Committee."

In May 18th, the company issued a profit warning for the financial report as of June 30th, indicating that its business related to China will be damaged by HK $2 billion 700 million (US $348 million 360 thousand).

The company will also pay up to HK $300 million (US $38 million 710 thousand) for its store closures and heavy leases.

After losing 98% of its profits, the company said that the brand had "lost its soul" and launched the "pformation plan" in 2011.

Under the leadership of the company CEO Jose Manuel Martnez Gutirrez, the company also tried to recombine Zara and H&M in the process of restructuring, DBS DBS only Gundam.

Analyst Alice Hui listed this as a "long-term practice".

She said: "it's hard for you to see how much impact you have in the pformation process, which is hard to measure.

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Investors may be more concerned about some of the operational parameters.

The company will publish its annual financial report in Hongkong on Wednesday.

Webb is also an independent non-executive director of the former Hongkong stock exchange. He said that the current FRC chairman is also a former senior executive.

In July 2008, Poon resigned as vice chairman and chief financial officer of Sijie, and he joined the company as executive director and chief financial officer in 1999.

This is the only listed company that he has been in since 1990.