EuroSports Global Limited

[GPD]

Ok I am getting a bit kpo here.

The company said, there is a decrease of $550k due to fewer Lamborghini models sold. 13 compared to 15 last year. So 2 Lamborghini cost only $550K???. From LTS website, the basic cost (ie before dealer's profit) of a Lamborghini is close to $1mil.

Where have I got wrong?

[level13]

Casualty of the new ARF scheme...

New?
Isnt this tiered ARF scheme in force since Mar/Apr 2013?

http://transport.asiaone.com/news/wheels...car-market

[egghead]

Well, it sure didn't feel like the scheme is two years old...the right word is perhaps "revised ARF scheme"

[level13]

Well, it sure didn't feel like the scheme is two years old...the right word is perhaps "revised ARF scheme"

If i am a shareholder, my next qn to the management will be:

This revised ARF scheme has been in force for 2 years. What steps have the company taken to soften the impact on profit?

Knowing this government regulation is forced upon them, there is not much they can do, my qn is mainly to gauge the pro-activeness of the management more than anything else.

[mkmk]

Ok I am getting a bit kpo here.

The company said, there is a decrease of $550k due to fewer Lamborghini models sold. 13 compared to 15 last year. So 2 Lamborghini cost only $550K???. From LTS website, the basic cost (ie before dealer's profit) of a Lamborghini is close to $1mil.

Where have I got wrong?

They didn't give the breakdown of the Lamborghini automobile sales, but to simplify, let's assume FY14 was $15mil, hence FY15 is 14.5mil

FY14: 15 sold, each cost (15mil/15) = $1mil
FY15: 13 sold, each cost (14.5mil/13) = $1.12mil

Hence, it doesn't mean that 2 Lamborghini cost $500k. On the flip side, it means the Company would have profited if 1 more Lamborghini has been sold due to higher pricing per Lamborghini.

[karlmarx]

Supercar business continues to suffer. Eurosports Global has $30m debt and $12m equity.

http://infopub.sgx.com/FileOpen/Full%20Y...eID=455203


Hong Seh recently stopped distributing Maserati. Anyone bought one during the clearance sale?

http://www.todayonline.com/singapore/mas...lear-stock

[karlmarx]

Executive Chairman & CEO Melvin Goh has been quite active buying back shares recently. This is despite the poor super car market and company's performance. Planning to buy back the company, protect its reputation, or issue more shares?

http://infopub.sgx.com/FileOpen/_Form%20...eID=468330

[MrValue]

I fail to understand why would its CEO be willing to buy back more shares of the loss making company at 5 times book value.

Dealership retailing of super cars in Singapore is a tough business, with v high fixed cost so markup has to be high to compensate for the low sales volume. But not that many buyers are willing to pay the v high markups and disproportionately high taxes, especially with competition from the parallel importers.

[Triple70]

A founding CEO's personal nett worth is based on the share price x no. of shares he owns.
Usually banks would offer such ppl credit facilities backed by the shares he holds.
A falling share price may result in margin calls.
Therefore.. It is in everyone's interest to maintain the share price at a high level, regardless of the performance of the company.
Take salary.. To buy back shares.. In the end.. Guess who are the losers.

[weijian]

So, a luxury car distributor with losses in 8 out of the last 11 years has decided to plough in 1/3 of their total assets into development of an electric maxi-scooter. Scooters generally only sell well in the Global South and the Indonesian government's efforts to electrify their 2 wheelers largely missed their targets by a huge margin. Therefore, I suppose we can't really blame the auditors for issuing a "qualified opinion".

RESPONSES TO RELEVANT AND SUBSTANTIAL QUESTIONS FROM SIAS

SEC keeps our manufacturing strategy nimble by working with contract manufacturing partners globally. BYD is our first contract manufacturing partner, and BYD will conduct the final assembly of the Lambda Scorpii.

The SEC investment is carried at $4.24 million, with an additional $8.09 million in receivables due from the entity. In light of the mixed performance of the group’s distribution business, some shareholders consider SEC as a potential source of significant value creation and capital recovery

SEC has trailblazed to create Singapore’s first electric motorcycle for the world. We are currently seeking external funding to enter into mass production and scale up. The Group is strategically evaluating all options to unlock shareholder value.

Management is unable to comment on the auditor’s audit process or the choice of wording used by the auditors, RSM SG Assurance LLP, in the independent auditor’s report. However, management disagrees with SIAS’s suggestion that management was unable or unwilling to provide RSM SG Assurance LLP with the necessary information.

Throughout the audit, the auditors were given unrestricted access to the required documentation, including budgets and forecasts. In addition, the auditors met with the directors in various meetings — including independent directors in certain meetings—on matters related to, but not limited to, the qualified opinion.

While management is disappointed with the issuance of a qualified opinion, we wish to draw attention to the announcement dated 17 July 2025, which sets out the Board of Directors' commentary on the audit qualification, and invites readers to read it.

https://sias.org.sg/media/qareport/EuroS...202025.pdf