BEIJING -- China's bike-sharing company ofo said that its bookings volume has been steady and cash flow is very sound, denying media reports that the company can only survive for a month while its bookings plummet.
"The report is groundless since it never communicated or interviewed the company, just falsified information," said a statement ofo sent to the Global Times on Friday, referring to the report by domestic news portal QQ Tech, citing an anonymous source close to the company.
"There is less than 600 million yuan ($92.88 million) in ofo's cash account after it paid wages for staff and part-time workers on January 10, the monthly payday," the source was quoted as saying in the report.
"If ofo's monthly cash outflow is calculated as 400-500 million yuan including wages and maintenance fees, as well as continuous refunds to users, its cash balance is only good for a month," the source noted.
Daily bookings of the bike-sharing platform have dropped to 10 million, down 60 percent from last October's 32 million, the report said.
The QQ Tech article also reported the difficulty of deposit refunds by several bike-sharing players since August. A Beijing-based ofo user surnamed Chen told the Global Times on Friday that she tried getting her 99 yuan deposit back from the ofo app and succeeded in real time.
"A large number of similar reports have emerged on the internet as the QQ Tech article was published," ofo said, noting the company has evidence that some interest group is behind the bad PR.
The company said its lawyers have begun the process of suing QQ Tech.(Source:Global Times )
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