Delong Holdings

The company you provided, Acrafile, does not serve listed companies.

Its introductory statement on the need for a company secretary is "Singapore Companies Act states that every company is required to appoint a Company Secretary within 6 months of incorporating Singapore Pte Limited Company".

$288 per year is Acrafile's fee. One can call Boardroom or RHT Law for their charges for serving listed companies. 

(16-08-2017, 06:17 AM)portuser Wrote: The company you provided, Acrafile, does not serve listed companies.

Its introductory statement on the need for a company secretary is "Singapore Companies Act states that every company is required to appoint a Company Secretary within 6 months of incorporating Singapore Pte Limited Company".

$288 per year is Acrafile's fee. One can call Boardroom or RHT Law for their charges for serving listed companies. 

So you are saying company secretary for listed company provides legal advice and non listed doesn't? Neither Companies Act or ACRA differentiate listed or non listed (but private or public). SGX rules does. So far I've not read SGX rules requiring a law firm to be company secretary. An individual can also be the company secretary. Delong's company secretary is the finance manager.

Listco are free to hire one-stop shop for their service. Just as they can get Big 4 or other auditors, but getting Big 4 is not a requirement.

My posts on this thread quoted from the book "Walter Woon on Company Law" and the Singapore Legal Advice.

My post on 12 Aug quoted from the book that directors and company managers are personally liable for improper dividend declaration.

My post on 15 Aug quoted from the Singapore Legal Advice that advisory and fiduciary roles are expected of company secretaries.

I have no pre-conceived idea on such matters. I read up and share info from reliable sources. 

In your post dated 15 Aug, you highlighted that Acrafile charges $288 per year for company secretarial service. 

I pointed out that Acrafile serves non-listed company, based on its website. I know Boardroom and RHT Law charge listed companies more.

I am surprised by your questioning me:
"So you are saying company secretary for listed company provides legal advice and non listed doesn't? "

Have I said company secretary of non-listed companies do not provide legal advice? 

I will only say so based on reliable sources, and will not venture into speculation.

http://infopub.sgx.com/FileOpen/Clarific...eID=473658

In addition, the Company understands from one of its substantial shareholders that it is in the process of carrying out a strategic review of its shares in the Company, which may or may not lead to a transaction.

Delong's FY17 earnings surge more than 10 times to $433 mil on higher selling prices of steel coils

The Edge Daily

SINGAPORE (Feb 27): Delong Holdings reported FY17 earnings of RMB2.1 billion ($433 million), up 10 times from RMB213 million a year ago as average selling prices of hot rolled coil (HRC) soared.

This came after it reported 4Q17 earnings more than doubled to RMB327.3 million from a loss of RMB401.9 million a year ago.

Revenue for 4Q rose 9.9% to RMB2.98 million principally due to continued increase in ASPs of HRC driven by higher infrastructure and construction activities in China, despite lower sales volume in the quarter.

The decrease in sales volume was mainly due to the cessation of Aoyu Steel’s operations in August 2017 coupled with the shut down of Delong Steel’s blast furnaces amid the maintenance exercise and China's environmental policies.

In 4Q17, the group sold 822,841 tonnes of HRC and 60 tonnes of steel billets as compared to 865,455 tonnes of HRC and 30 tonnes of steel billets in 4Q16. Overall sales quantity decreased by 42,584 tonnes or 4.9%.

Total cost of sales decreased slightly by RMB10.3 million or 0.5%, from RMB2.24 billion in 4Q16 to RMB2.23 billion in 4Q17. The decrease was primarily due to lower sales volume as mentioned above, partially offset by higher raw material prices in 4Q17.

Gross profit increased by 59.3% to RMB746.1 million in 4Q17 from RMB468.4 million in 4Q16. Gross profit margin increased by 7.8 percentage points to 25.1% in 4Q17 from 17.3% in 4Q16. The increase was primarily due to the significant increase in average selling prices of products sold which outpaced the increase in raw materials prices in 4Q17.

Other losses decreased by RMB662.2 million to RMB37.3 million in 4Q17 from RMB699.5 million in 4Q16, primarily due to the one-off impairment charge of RMB600 million provided on Aoyu Steel’s production facilities in 4Q16.

In its outlook, Delong says domestic demand for steel in China is expected to remain stable in 2018 amid the steadily-growing national economy, with a focus on quality over quantity.

However, environmental issues remain high on the agenda of the China government, with continued efforts and resources directed towards the tightening of its environmental protection rules to control pollution sources.

This is my first post on Delong here. I started researching on this company recently, so am a bit late in the game. But Delong appears to be a victim of the S-chip fear factor. To be more certain, i have been doing some research on it, and so far the stories behind the company as well as its Exec Chairman and major shareholder Ding Liguo seem compelling. At current share price,the stock is barely trading a PE of 1X, and 0.5X NAV. The company's latest results are open to all to research, so here i will present my take on the company's and Ding's non-financial stories:

I like what I read about Delong’s exec chairman and major shareholder Ding Liguo as well as Delong the company itself. I will have to attend their next AGM to gauge for myself if my gut instinct is correct. But here is why my fear factor for the company is probably much lower than the market's:

1. Ding had a serious car accident in 2000, when he went into a coma for 3 days and was hospitalized for more than 100 days. This is a life transforming incident for most people, and in Ding’s case it showed clearly to be one. There was reflection about life and the search for meaning in life, and he decided that life is not just about making money.

2. During that episode too, he came in touch (or perhaps more in touch) with Buddha-Dhamma. As a practising Buddhist, I know what being in touch with the Buddha-Dhamma means – our lives change as we see the world in a different way: Greed, hatred, delusion and Generosity, loving-kindness and wisdom. In one of the articles, he was quoted as having successively studied Buddhism with several masters. After one of the master died, Ding set up a Buddhist temple at his home and enshrined his Master's relics.  With more than 30 years of trading experience I have not read anything on any CEO being in touch with Buddha-Dhamma, and that alone gives me quite a bit of good vibes.

3. Ding is a philanthropist, and even workers at Delong are encouraged to volunteer in the charity he set up. I have read about his charity and the volunteers and am rather impressed. Ding’s tears from seeing a bowing beneficiary – that’s the manifestation of compassion and loving-kindness. Generosity arises from the absence of greed. So I do not expect Delong to be a victim of greed.

4. He is not a hidden face, but a public figure. The interviews with a philanthropist website, his association with Jack Ma, the long articles on his life and Delong, his representations in many non-business or government organisations  – these are not marks of a man who is hiding out of secrecy and fear, which would have made me wary.

5. When Delong’s $130m bonds were due some years ago, Ding did not take advantage of the situation to close shop (like most S-chips did). Instead, he repaid the bonds even when steel business was in the doldrums. There were ample opportunities for Delong to become another dead S-chip but none was seized.

6. Delong has ACTUAL business, proven by the company’s recent JV in Indonesia (after so many years of listing it’s still genuinely looking to expand; that’s not a sign of it planning to fold) and all the photos of the steel mills in owns in China. We are not seeing invisible cows or missing buildings.

I have more to write about Ding and Delong, but for now, this suffices.

I am taking today’s sell down of Delong shares to accumulate. I think the lack of a dividend payout is the main reason for the sell down, apart from the normal reason of “sell on good news (the results yesterday were anticipated due to positive guidance prior to that)”.

Although my optimism would have been more vindicated with a dividend declaration, I will give Ding benefit of a doubt for now. Perhaps a question on this during the next AGM could allay some fears.
In the meantime, I am inclined to explain away (ie, only my personal view) the lack of dividend as due to old school financial conservatism, possible expansion or M&A plans or simply keeping the cash for working capital.

There are also concerns that steel prices will head lower this year, which means this 2017’s out-of—world figures will not be repeated. This is a valid point, though not an overly worrisome issue. In fact, steel prices in China have already declined over the past couple of months. I think a measured drop will not dent Delong’s earnings too much, and I do not expect the company to repeat its fantastic earnings of 2017 (EPS: S$3.93).

Generally, the talk in the market is one of fear that all those accounting figures are fake, but so far I have not seen any analysis of why they are suspected to be so, other than generalizations about S-chips’ horror stories. Perceptions are useful, but not so all the time.

I will be doing further research on Delong and posting them here as when I am free to do so.

i am not an expert on delong..currently not vested.
The main prob with this company I feel is no dividend payout for the past 10 years. Even if they do well, also no dividend.
Can't they try to understand investors concerns and try to balance capital expenditure and investors expectations? Otherwise why tap the capital market? They should seriously think about privatisation and then run the company whichever way they deem fits.

(28-02-2018, 01:17 PM)mslee888 Wrote: i am not an expert on delong..currently not vested.
The main prob with this company I feel is no dividend payout for the past 10 years. Even if they do well, also no dividend.
Can't they try to understand investors concerns and try to balance capital expenditure and investors expectations? Otherwise why tap the capital market? They should seriously think about privatisation and then run the company whichever way they deem fits.

Yes I agree. Will have to see what Ding say at its next AGM. On the other hand, if it dishes dividends, it will not be a $4.25 stock now. 

Meanwhile, here are some reports of Ding and Delong (can translate to english). I think the website features philanthropists. 

http://www.icixun.com/2017/1031/5919.html   

http://www.icixun.com/2017/1101/5920.html   - The dialogue

(28-02-2018, 04:12 PM)Sumeria Wrote:

(28-02-2018, 01:17 PM)mslee888 Wrote: i am not an expert on delong..currently not vested.
The main prob with this company I feel is no dividend payout for the past 10 years. Even if they do well, also no dividend.
Can't they try to understand investors concerns and try to balance capital expenditure and investors expectations? Otherwise why tap the capital market? They should seriously think about privatisation and then run the company whichever way they deem fits.

Yes I agree. Will have to see what Ding say at its next AGM. On the other hand, if it dishes dividends, it will not be a $4.25 stock now. 

Meanwhile, here are some reports of Ding and Delong (can translate to english). I think the website features philanthropists. 

http://www.icixun.com/2017/1031/5919.html   

http://www.icixun.com/2017/1101/5920.html   - The dialogue

I guess you have to read it with a pinch of salt. Its safer to err on the side of caution after all its our own money. There are many S chips rotten apples. Can only blame oneself if things go wrong. DYODD.

You can read some responses from the company previously below. I doubt you can get any new perspectives from the next AGM.

http://infopub.sgx.com/FileOpen/Co%20Res...eID=481730