Qingmei Group Holdings

If everyone opts for script dividend scheme, then the additional shares listed would be about 16.5m/13.5c = 122M shares. That would be about 19% of the current 640M shares outstanding, means that the eps will be diluted by 19%. am i right to say that?

http://info.sgx.com/webcorannc.nsf/Annou...endocument

ANNOUNCEMENT OF CESSATION AS CHIEF FINANCIAL OFFICER

Reason: To pursue other career opportunities.

Hmm.....
Seriously, the above declaration for the reason is basically useless.
Might as well don't ask.

Yes theoretically if everyone subscribe for the scrip, then additional shares should be around 122m. But only 40m shares were issued. So if only the significant shareholder opted fully for scrip while others opted for cash, his 60% stake should result in 70m++ new shares(0.6*122) which meant he did not fully opt for scrip. But his announcement implied that he would opt for scrip....Well for those who argue that this counter PE is low and etc....good luck...

http://info.sgx.com/webcoranncatth.nsf/V...200246138/$file/Qingmei_sellof23millionshares_7Oct11.PDF?openelement


http://info.sgx.com/webcoranncatth.nsf/V...B00120266/$file/Allotment_and_Issue_of_New_Shares_21Dec11.pdf?openelement

No vested interest

(10-11-2011, 09:22 PM)jackphang Wrote: If everyone opts for script dividend scheme, then the additional shares listed would be about 16.5m/13.5c = 122M shares. That would be about 19% of the current 640M shares outstanding, means that the eps will be diluted by 19%. am i right to say that?

Significant shareholder got 36m new shares from scrip dividend....meaning he could have opted 50% each for cash and scrip

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Quite misleading announcement below because the significant shareholder's stake increased because few of the other shareholders opted for scrip while he himself opted around 50% for scrip.....

http://info.sgx.com/webcoranncatth.nsf/V...D000B9875/$file/Qingmei_News_Release.pdf?openelement

This dividend scip thing is potentially not fraud-proof.

With the CEO opting for scrip, it doesn't mean he believes the business is good. It is more possible that the company has not enough cash to pay off its large share, hence he opt for scrip while hoping to build some confidence within the current shareholders..

Think it this way, if I am the CEO, I will cheat off 90% of the cash and pay off 10% as dividend to prolong confidence.. 90% of cash cheated for 10 years is better than 100% for 5

Might be better to opt for cash the next time and at least hope the subsequent dividend payment can allow initial cost of investment to be covered..

*not vested*

(22-12-2011, 05:55 PM)dzwm87 Wrote: This dividend scip thing is potentially not fraud-proof.

With the CEO opting for scrip, it doesn't mean he believes the business is good. It is more possible that the company has not enough cash to pay off its large share, hence he opt for scrip while hoping to build some confidence within the current shareholders..

Think it this way, if I am the CEO, I will cheat off 90% of the cash and pay off 10% as dividend to prolong confidence.. 90% of cash cheated for 10 years is better than 100% for 5

Might be better to opt for cash the next time and at least hope the subsequent dividend payment can allow initial cost of investment to be covered..

*not vested*

there's a chinese saying for this: 放长线，钓大鱼 (eng translation: patiently release the fishing line to get the bigger fish)

Amazing, still seeing positive growth... It seems that there must be some superman or superwoman working there?

SALE OF SHARES BY CONTROLLING SHAREHOLDERS
http://info.sgx.com/webcoranncatth.nsf/V...7000F34C1/$file/Qingmei_private_placement_2012.pdf?openelement

(After Hu An's result is out, I bet the significant shareholder will continue to sell to willing minority shareholders)

The more interesting question is "Who is the buyer?"
Unless the share placement is placed out in such a way that none of the buyers exceed 5%.

But, the CEO is real nice. Giving up such a big stake in such a profitable company so as to " enhance liquidity, broaden the investor base of the Company and meet investors’ demand for the Group’s shares."

1. Scrip dividends(no need to pay out cash)
2. Grp has RMB$438m cash hoard, zero debts
3. Director reducing stake 62% stake to 46% by selling 114.32m shares at between $0.16 and $0.17 or an estimated amount of RMB$100m.

If I am the director, I would do a cash distribution......maybe half of the company's cash hoard.....let's said RMB$200m and my 62% stake would get me RMB$120m. The company should be ok to take on some debts since ZERO debts. Why should I sell at such a low PE and NTA. Hhmmmm maybe it is because the company is more important than my personal interest or that it is an opportunity to enhance liquidity, broaden the investor base of the Company and meet investors’ demand for the Group’s shares. Or maybe the clue might be in the scrip dividend......no need to pay out CASH.........no need to pay out CASH.......such a selfless director like what yeokiwi have said.....give him a clap...selling shares at a cheap to enhance liquidity, for the sake of all shareholders. I bet he would sell his whole stake to you if you are interested.....call him if you are interested but remember to ask for a further bargain for I am sure he would be too kind not to oblige.....

http://info.sgx.com/webcoranncatth.nsf/V...3003B734E/$file/Qingmei_2Q12Results.PDF?openelement