Grizzly Research short GigaCloud, claims ‘disguising costs as revenue’

Grizzly Research issued a short report on GigaCloud, which the short-seller calls “a Chinese e-commerce company whose stock has tripled in recent months on excitement of the B2B marketplace, GigaB2B.” The firm argues that GigaB2B’s “web traffic does not square with its growth story” and alleges that “GCT operates a complex web of undisclosed related party shell companies.” GCT “seems to be disguising costs as revenue to inflate its top line,” claims the firm, which contends that “GCT’s fantastic financials are the result of questionable activity.” The firm believes “GCT is your run-off-the-mill China Hustle that is misrepresenting its business to inflate key metrics,” it concluded.