Baofeng did not elaborate on the nature of the allegation, except to say that it is “not about corporate crime,” and that it does not know if the matter is “related to the company.”
“We have not received any notice that the company will be investigated,” Baofeng added.
CNN has been unable to contact a representative for Feng.
Baofeng Group operates Storm Codec, a popular media software in China. It also offers online entertainment services and manufactures virtual reality glasses.
Its stock has fallen more than 20% since that statement was released.
The Beijing-based company said that recent media reports on Feng have had a “relatively big negative impact” on its investors, employees and business partners.
The company said in its filing that some of the reporting about Feng contained “false or misleading information.” But it did not elaborate.
“So far, our core workforce has been stable,” the company said. But it added that it will “try to keep operation costs low, reduce various costs and expenditures” and maintain stability.
Last year, Baofeng Group suffered a loss of 1.09 billion yuan ($160 million).
Nanlin Fang contributed to the story.
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