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(06-04-2012, 10:38 PM)dydx Wrote: [ -> ]Foreland's latest FY11 (ended 31Dec11) AR makes interesting reading.....
http://info.sgx.com/listprosp.nsf/6c6be9...70021219e/$FILE/Foreland%20AR2011-Sgx.pdf

I thought the factory photo in page 5 in the front page looks to have undergone quite substantial photoshop.
So I went online to look for the exact look of the factory.
http://362000.org.cn/show/shop_91489.html
http://362000.org.cn/stree/image.php?pic...lilu_1.jpg

Hmmm...
If you go google map and if you think google map is correct, then the photo in page 4 does not look the same as the google map top view. The white building in the AR does match one of the building in google map but the yellow building on the right in AR does not seem to exist.
Another possible reason is that the google map is not updated...

Input the following to google map to see..
晋江福联织造有限公司

Hi sgmystique,

Can ask about the status of the new factory? Has they resolve the license issue? When will it be fully operational?

Google map is not to-date. If I'm not wrong, it's about 3 years out of date.

(23-04-2012, 10:20 PM)Greenrookie Wrote: [ -> ]Hi sgmystique,

Can ask about the status of the new factory? Has they resolve the license issue? When will it be fully operational?

Well that sure is one of the key queries I have for management. Have collected their announcements on this new factory since listing. Am really curious as to when it will actually go into production. Interestingly Mr. Tsoi has referred to the new production premises in the AR but without any timelines.

(23-04-2012, 10:29 PM)bb88 Wrote: [ -> ]Google map is not to-date. If I'm not wrong, it's about 3 years out of date.

The same factory picture was available since 2007 AR.
Over the last few years, they did not even bother to update the picture..haha..

(28-03-2012, 11:08 AM)sgmystique Wrote: [ -> ]Well with Mr. Tsoi Kin Chit being happy to pick up stocks at rock bottom prices instead of taking his dividends in cash I feel he is happily increasing his stake at cheap in the company. You need to realise that the amount of shares he gets in lieu of his dividends would be difficult to get at the same prices on the stock exchange.

(28-03-2012, 11:03 AM)dzwm87 Wrote: [ -> ]you need to know in context that textile S-chips in the past have been hit with many frauds..

no doubt Foreland has an amazing fundamental qualities - assuming in the first place it is true - but the poor fact is that Mr Market does not think so.. can you convince that Mr Market is wrong?

you can be right but I think for the 'truth' to set in, the time horizon of this investment has to be long-term.

I think the best catalyst will be for Foreland to just pay straight cash dividend, no partial cash & scrip or whatsoever.. unfortunately, they have not done so..

Hi Sgmystique

You got a valid point re scrip dividend option esp for S-chips. Why don't you go to their website and send them an email re the unhappiness of investors on this matter and that you want to bring this matter up in coming AGM. Perhaps they'd address this in the AGM? Hmmm , wonder why they don't have share buyback mandate ??

I make queries or complaints via emails to company's IR dept and I don't care if they read them or not. Some companies reply to queries promptly and regularly . Forget about those companies which never reply .

(24-04-2012, 10:29 AM)cosmic Wrote: [ -> ]

(28-03-2012, 11:08 AM)sgmystique Wrote: [ -> ]Well with Mr. Tsoi Kin Chit being happy to pick up stocks at rock bottom prices instead of taking his dividends in cash I feel he is happily increasing his stake at cheap in the company. You need to realise that the amount of shares he gets in lieu of his dividends would be difficult to get at the same prices on the stock exchange.

(28-03-2012, 11:03 AM)dzwm87 Wrote: [ -> ]you need to know in context that textile S-chips in the past have been hit with many frauds..

no doubt Foreland has an amazing fundamental qualities - assuming in the first place it is true - but the poor fact is that Mr Market does not think so.. can you convince that Mr Market is wrong?

you can be right but I think for the 'truth' to set in, the time horizon of this investment has to be long-term.

I think the best catalyst will be for Foreland to just pay straight cash dividend, no partial cash & scrip or whatsoever.. unfortunately, they have not done so..

Hi Sgmystique

You got a valid point re scrip dividend option esp for S-chips. Why don't you go to their website and send them an email re the unhappiness of investors on this matter and that you want to bring this matter up in coming AGM. Perhaps they'd address this in the AGM? Hmmm , wonder why they don't have share buyback mandate ??

I make queries or complaints via emails to company's IR dept and I don't care if they read them or not. Some companies reply to queries promptly and regularly . Forget about those companies which never reply .

Hi cosmic,

Plan to write to Foreland before the AGM. Hopefully will do it today. A share buyback also makes sense keeping in mind the really low levels the share trades at these days.

Let's see how it goes.

Dear Sir/ Madam,

I would firstly like to congratulate all of you on a fabulous 2011. The results have been truly pleasing for every shareholder.

However you would be aware that the share price of Foreland has been going in the opposite direction of your financial performance. Based on the current market capitalization you can practically buy out the whole firm for the same amount as the net cash on the books. The entire production facilities and all future earnings capability can be got for free. This points to either the market having got Foreland completely wrong OR the fact that your reported numbers do not give the actual picture of how things are.

Please find listed below my queries which I intend putting forward to Mr. Tsoi at the AGM and a list of suggestions as well.

Queries:

(1) What would happen to the existing production facility (of approximately 29,333 sqm) once you move to the new production facility (of 76,000 sqm). Will it still be used for production with the new facility literally trebling your existing capacity/ Will the existing land + Factory be sold off/ Will the existing production facilities be mothballed and left as it is?

(2) When do you move production to the new facility. I have listed below the timelines for the same based on your previous press releases:

On the 6th October 2008 you came out with a Press Release saying that "Barring unforeseen circumstances, the company expects commercial production at the new production facility to commence in the second half of the financial year ending 31 December 2009."

On the 31st Dec 2009 the announcement released said "The commencement of the commercial production at the new production facility (the "Andong Project") will be delayed to the third quarter of Financial Year 2010. At this point of time there was already an estimated cost over-run of RMB 294 million (S$58.2 million). This cost overrun itself is more than the current market capitalisation of Foreland. This does look quiet ridiculous.

On the 27th August 2010 you again mentioned that "Major production premises of the Andong Project will be completed in the third quarter of the financial year 2010 as announced in December 2009. However, the company expects the commencement of commercial production at the new production facility and the completion of staff dormitory will be delayed." This time round you had no updates on the estimated completion works.

On the 3rd April 2012 you have said " The major production premises and the construction of the staff dormitory of the Andong Project have been completed. However, the company expects the commencement of commercial production at the new facility to be delayed." Again you had no news on when the production would actually start.

Based on all the above I would like to ask:

- Has the land actually been purchased (Please provide documentation for the same/ The terms for purchase of the land/ Duration for which the land has been purchased-Is it freehold or leased for a duration of X years)
- Has the machinery been purchased. If yes please let us have a video of the new land, plant, production machinery.
- Once you get the necessary environmental clearances how much time will it take for actual production to get started.

(3) What is the current production capacity and what will be the production capacity once the new plant is operational.

(4) Please let me have your projections on the Financials once the new plant is completely into production.

(5) How do you expect 2012 to turn out based on order projections from existing customers.

(6) Last but not the least, why keep on issuing new shares at a ridiculously low price (in lieu of dividends as well as the other share placements the company has recently made) instead of actually buying back your shares from the open market when you have a situation where the cash balance with the company keeps on ballooning???

I would really appreciate your inputs on the above.

Suggestions:

(1) Please show us some videos of the existing and new production facilities.
(2) Please bring along actual products that the company manufactures to the AGM so that all shareholders can get an actual feel of the excellent fabrics you manufacture.

Look forward to meeting up with representatives of Foreland on Friday.

Best Regards,

hi sgmystique,

Any updates on foreland AGM? Appreciate your input, especially on the status of new production facilities. Many thanks.

Hi Greenrookie,

I had been to the Foreland AGM today morning and had very meaningful one to ones with

1. Mr. Tsoi Kin Chit (Executive Chairman)
2. Mr. Simon Wong (CFO)
3. Mr. Lim Siang Kai (Independent Director)
4. Ms. Susan Foong (Partner at Baker Tilly-Their auditors)

They were well prepared with answers to the queries I had sent them. I will just list out the responses to them out here. These responses have come from the above listed people:

(1) They plan to move the machinery from the existing plant to the new plant. The existing plant will not be used once the moving is completely done. The land the current plant is on can now be used for residential purposes. So they plan to either:

- Sell the plot of land
- Get into construction of residences on that plot with some development company

They have not yet finalised on what would be the final course of action because there is still some time before the production moves completely into the new premises.

(2) Simon had brought along photographs of the new production facilities. The plant is indeed up and so is the staff dormitory.
- They have installed some machinery in the plant but more work can only be done once they receive the environmental clearances which is now the main reason for stoppage of work.
- They will build the water treatment facilities once they know the new environmental regulations and requirements. Once they get the necessary environmental clearances it will take between 3-6 months for the water treatment facilities to be constructed and for actual production to start.
- In terms of timelines they expect prodution to start at the new facility in Q4 of this year. It will take about 6 months to move the entire production from the existing factory to the new one. BTW the new land purchased is on a 50 years lease acccording to Mr. Lim Siang Kai.

(3) (4) (5) Current production capacity is 60.8 million yards and the new enhanced capacity will be about 80 million yards (30% increase). This is expected to happen after the move to the new plant. Consequently the financial numbers for 2012 will not differ greatly from those of 2011. I would expect things to really look up from 2013.

(6) They made the share placements at S$0.1235 in June 2011 to some major shareholders to increase the liquidity and the price of shares. But 9 months down the road nothing seems to have improved. Liquidity is still low and the share price keeps going lower still (It ended the day at S$0.091). It was my suggestion to Simon that if they really want to reward shareholders they should keep increasing the dividend payout on a regular basis as the business keeps growing and their cash requirement for new construction goes down and of course their cash balance keeps balooning ( :

Simon took the inputs in the right spirit. Now we have to wait and see if they do increase dividend payments in times to come.

Inputs from the Auditors (Ms. Susan Foong):

They carry out regular checks on the cash balances and the numbers reported by Foreland are all above board. Interestingly Baker Tilly are also the auditors for World Precision Machinery. They currently audit around 20 companies listed on the SGX.

Suggestions:

(1) They did bring across photographs of the new facility
(2) We all had the joy of watching the products manufactured by Foreland. That I guess is one of the main reasons I am invested in them and they did not disappoint.

We saw umbrellas with prints coming on them as water was poured. There were other samples where colors filled up the designs on the umbrellas as water was poured. These products are mainly sold in the Japanese and Korean markets. Interestingly I have never seen one of these umbrellas in Singapore till today.

This was one of the most fruitful AGM's that I have attended and hopefully Foreland will not disappoint in the years to come. Management is very open to getting shareholders to visit their plant. If we can form a group to go down to Jinjiang City, Fujian Province, management would love to host us out there for a couple of days. We just need to inform Mr. Lim or Simon about our planned timelines and they will make necessary arrangements for us to stay there.

Last but not the least, I got an umbrella from management. This is a perfectly plain lavender coloured umbrella when dry. But pour water on it and beautiful flowers appear all over. Will keep it as a treasured memento (:

Do let me know if there are any other questions you have or any other information you need.

Regards,

(27-04-2012, 05:25 PM)Greenrookie Wrote: [ -> ]hi sgmystique,

Any updates on foreland AGM? Appreciate your input, especially on the status of new production facilities. Many thanks.