Growth Enterprise Market-listed Greencool Technology's share price plunged 19.1 per cent after the company's product claims were questioned in a mainland magazine. An article in Caijing magazine said the company had over-inflated claims about its refrigerant products. It also questioned their energy-saving capabilities. A Greencool spokesman said the article was misleading. 'The company will take action and we will make an announcement next week,' she said. She said the company needed time to gather evidence to counter the magazine's claims. Greencool's shares closed yesterday at HK$2.85, 30.7 per cent higher than its initial public offering price of HK$2.18 when it was listed in July last year. Caijing cited unnamed industry experts as saying Greencool's refrigerants were not unique, as the company has claimed. It also said the energy-saving capability of its refrigerants had not been proven by stringent tests. Last year, Greencool Technology derived 91.3 per cent of revenues from projects converting refrigerants containing ozone-depleting chlorofluorocarbons (CFC) to CFC-free ones, and the remainder from sales of refrigerants. It has a 20-year exclusive right to distribute refrigerants manufactured by its parent, Greencool Tianjin. It does not charge first-time customers for replacing refrigerants. Instead, it charges them 10 per cent of the electricity costs of the machine in which the refrigerant is being replaced. Based on its claim that customers can save 20 to 25 per cent on their electricity bill by using its refrigerants, Greencool can theoretically reap 10 per cent to 15 per cent of its customers' savings. The magazine said it had also conducted telephone interviews with 14 out of 21 customers listed on the refrigerant distributor's marketing literature for referral purposes. Of the 14, only five said they had made significant energy savings after using Greencool's refrigerants. Of the remaining nine customers, five said they had never bought Greencool refrigerants, while one customer said he had never used the refrigerants after testing the products at Greencool's request. Three other customers said their refrigeration systems had not given energy savings as claimed by Greencool. Caijing made its name with a series of exposes of stock market manipulation earlier this year. Last month, in an interview with Business Post, Greencool chairman Gu Chujun said he believed the company's products were the only energy-saving ones in the market. 'The other refrigerants do not have energy-saving properties . . . this need not be claimed by us. When we were listed, researchers of listing sponsor ING Baring conducted due diligence.' ING had found figures given by other companies on their Web sites showed their CFC-free refrigerants were not energy-saving, and consumed more energy than those they replaced, he said at the time. ING declined to comment. Greencool's competitors include international chemical giants Dupont and ICI.