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Since it has so much cash holdings (12 cents per share), might as well delist and give back and reward shareholders.

Mr Market is only pricing it at 7+ cents. Delisting at cash value can earn more?

(29-05-2012, 05:34 PM)peterlynch Wrote: [ -> ]stockerman, your post is very misleading. Geoinvesting was NOT referring to Qingmei. It was actually referring to Chinese companies listed in US. My friend in Fujian has already confirmed that Qingmei is a real company, a solid shoe sole company. It is in operation.
Regarding QIngmei CEO Mr Su, how would u respong to these allegations if you were him?
(02-06-2012, 11:40 PM)peterlynch Wrote: [ -> ]Don't fret, chairman Su has long settled his debt over Xibodeng since he sold 16% of his shares. I agree with u that he shouldn't have involved himself with that mess. But let bygones be bygones. Let's hope u will refocus on Qingmei and reward shareholders who have stuck by him. By the way, he's already stated that Q3 results have reached bottom; the only way to go is up. I'm eagerly awaiting Q4 and year end results before deciding what to do- Sell or buy more?

Do you know who are the principal bankers of Qingmei? Can you obtain a copy of their latest bank statement?
Hongxing - "In the past two years, its share price had crashed to only 11.5 cents before trading of its shares was halted, with questions emerging over its reluctance to pay a big dividend to shareholders despite sitting on a huge cash hoard. "


Same thing might happen to Qingmei.... a lot of cash hoarding without paying out. if company doesnt dare to even pay out a bit, well the cash might not be real after all..


People are still waiting for the photographs of SUPER HEROS working the factory... "Why are we waiting!"

How about the website? why is there such a long long delay? i thought someone said that he has checked with company ???


(24-07-2012, 07:50 PM)Underdogger Wrote: [ -> ]Do u think we can apply the learning points from China Hongxing to this counter?

A lot of cash but not willing to pay out more dividends and do share buy back?


****

Red flags for China Hongxing
Sudden departure of its auditors last year an early sign
By Goh Eng Yeow, Senior Correspondent

A SIMPLE rule of thumb: It's time to get at least a little worried when a company's auditors are replaced.

Take the case of former market darling China Hongxing Sports, which last Friday appointed special auditors after uncovering irregularities.

Investors could have taken heed of warning signals even before the counter was forced to apply for trading suspension of its shares last week owing to possible accounting irregularities.

Chief among these red flags was the sudden resignation of its auditors in October last year, as well as a huge jump in the firm's trade receivables - money owed by customers for goods delivered to them.

The Singapore market is reeling from a fresh round of jitters over the reliability of mainland China firms listed here, known as S-chips, with a second firm - Hongwei Technologies - also raising accounting worries, this time last Saturday.

One key question over China Hongxing surrounds the departure of the company's former auditors, RSM Nelson Wheeler and Foo Kon Tan Grant Thornton LLP, in October. They had been the company's joint auditors since it was listed in 2005.

Only six months earlier, the company's annual report stated that they were willing to be reappointed.

'Should investors be satisfied with a one-line statement that the auditors had no disagreement with the board on accounting treatments for the financial year ended December 2009 and that there were no matters of concerns to be brought up to the audit committee?' trader James Chen asked.

NRA Capital executive chairman Kevin Scully noted that China Hongxing's board had issued a negative assurance which had accompanied the release of its third-quarter results in November, to say nothing had come to its attention which might render the nine-month results 'to be materially false or misleading'.

'Did the board try to probe more deeply before issuing the negative assurance, considering that there was a sudden change of auditors? Did they try to get a more detailed explanation on why the existing auditors resigned?' he asked.

As it turns out, there had been plenty of warnings flagged by other analysts over the very question of a sudden change of auditors in a listed firm.

In September 2008, just months before a string of accounting scandals hit the S-chip sector, JP Morgan warned that a rapid switch of auditors was a red flag that all might not be well with an S-chip.

'Based on our experience in Asia, most auditor replacements are related to unsettled disputes on accounting practices.'

In China Hongxing's case, newly appointed auditors Ernst & Young told the firm's audit committee on Feb 22 that it had uncovered irregularities at the company's units Fujian Hongxing Erke Sports Goods and Quanzhou Hongrong Light Industry.

The company has since appointed nTan Corporate Advisory as its independent special auditors to conduct a thorough probe on the issues raised by Ernst & Young.

Another key question raised by some traders is the near doubling in China Hongxing's trade receivables to 684.6 million yuan (S$132.5 million) at Sept 30 from 363.4 million yuan a year earlier.

The big jump in trade receivables came even as the company's payables - the money it owed to suppliers for goods it received - was only 174 million yuan.

In other words, plenty of goods were going out the factory door but not that much in the way of components and the like were coming in the door.

Question marks over trade receivables had also been a red flag at other S-chips such as China Sun Bio-chem and Sino-Environment, which had also faced accounting irregularities.

But some traders noted that China Hongxing's fall from grace could be traced to as far back as 2-1/2 years ago, when the company disclosed the sale of a big chunk of shares by then substantial shareholder JF Asset Management - a sloppy five months late.

Pressed for an explanation, the company said it had not received any fax notifications on the sales, even though JP Morgan Asset Management, which owned JF, released details which showed that it had notified China Hongxing by fax within two days of each sale.

The most serious issue is that the collateral damage all this inflicts on retail investors is very painful, considering that the counter was once a major favourite S-chip with a market value of almost $4 billion when it reached a record high of $1.42 a share in October 2007.

In the past two years, its share price had crashed to only 11.5 cents before trading of its shares was halted last Tuesday, with questions emerging over its reluctance to pay a big dividend to shareholders despite sitting on a huge cash hoard.
Mr Peterlynch

your pictures are long overdue..

(18-05-2012, 06:20 PM)peterlynch Wrote: [ -> ]haha, ok will get Captain China. and yes i have read your earlier post.

Yes, I believe that SGX is purging out all the problem S-chips or let them die a natural death...

(13-05-2012, 10:18 AM)mrEngineer Wrote: [ -> ]I have a pure guess theory about S chips. I believe SGX is forcing many of the S Chips to report losses especially after the China Sky saga so that they can slowly wither away their cash position or they can be delisted in the future with continued poor performance. This may rescue SGX reputation in the long run.
pictures of QM taken by my fujian friends
the first 3 are the HQ and factory
the last 1 is the hostel
With one share backed by 12 cents , is the company telling investors that they have no resources to do up any website for the benefits of investors ?
It's not a matter of whether they have the resources or not. More often than not, S-chip bosses cannot be bothered with the interest of Singapore shareholders. Even Yangzijiang ship building doesn't have a proper all-english website. They don't think like American ceos. Different culture. The earlier we get used to their mentality, the better. Otherwise, don't invest in s-chips.
Does anyone have a rough estimation of Qingmei's customer base, how much of their sales are to the major chinese sportswear brands?
I wonder if curiousparty, stockerman and underdogger are all shorting this counter simulataneously? it will be good to declare your interestSmile

In any case, my stand is still if the company is trading at such discount to net cash, it should be doing what san teh is doing atm.

(not vested)
At least YZJ has a website. In this age,without website is like living in a cave. Plus I think upcoming results for Qingmei will be worse.

It should drop to a new low..

(13-08-2012, 11:06 PM)peterlynch Wrote: [ -> ]It's not a matter of whether they have the resources or not. More often than not, S-chip bosses cannot be bothered with the interest of Singapore shareholders. Even Yangzijiang ship building doesn't have a proper all-english website. They don't think like American ceos. Different culture. The earlier we get used to their mentality, the better. Otherwise, don't invest in s-chips.

Banking on Qingmei being a fraud. Tks Smile

(14-08-2012, 10:19 AM)shanrui_91 Wrote: [ -> ]I wonder if curiousparty, stockerman and underdogger are all shorting this counter simulataneously? it will be good to declare your interestSmile

In any case, my stand is still if the company is trading at such discount to net cash, it should be doing what san teh is doing atm.

(not vested)
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