Qingmei Group Holdings

Their crooking skills are honed to perfection...there is nothing which cannot be faked over there...

Of course all stocks carry risks, especially S chips. That's why s chips PE is so low, Qingmei's PE is only slightly more than 1.

if we extrapolate the 13.7mil RMB for Q3 for the next 4Qs, it is only $55mil RMB for full year...

Does it mean that going forward for next few quarters, we are going to see net profit squeezed being further, possibly going into losses?

Have written to August Consulting on the terrible Q3 results. Honestly it was too bad. The only thing of interest as far as Qingmei is concerned is whether the net cash on their books is real or not. If it is real there may still be value in the stock at current price levels (Provided management is open to sharing this cash with shareholders on a regular basis like they have done for the last 2 years). If it is a sham we can all write off our investments.

Hi Wrisney,

I was quiet disappointed by the Q3 results declared by Qingmei.

A 54.6% decline in turnover and a staggering 81.3% decline in Net Profits is quiet terrible. I would appreciate if you could let us know the true state of affairs at Qingmei. Have they lost some major customers because it is not possible for sales to drop so precipitously in an industry like footwear. This is a business that would see more or less stable growth rates and only minor declines if times get tougher.

BTW was there any progress for the conference call with shareholders. I am sure shareholders of Qingmei would have a lot of questions for the management.

Look forward to your inputs.

Best Regards,

Hi Sgmystique

Would be very grateful if you could share management's replies with forummers.
many tks.

(10-05-2012, 10:58 AM)sgmystique Wrote: Have written to August Consulting on the terrible Q3 results. Honestly it was too bad. The only thing of interest as far as Qingmei is concerned is whether the net cash on their books is real or not. If it is real there may still be value in the stock at current price levels (Provided management is open to sharing this cash with shareholders on a regular basis like they have done for the last 2 years). If it is a sham we can all write off our investments.

Hi Wrisney,

I was quiet disappointed by the Q3 results declared by Qingmei.

A 54.6% decline in turnover and a staggering 81.3% decline in Net Profits is quiet terrible. I would appreciate if you could let us know the true state of affairs at Qingmei. Have they lost some major customers because it is not possible for sales to drop so precipitously in an industry like footwear. This is a business that would see more or less stable growth rates and only minor declines if times get tougher.

BTW was there any progress for the conference call with shareholders. I am sure shareholders of Qingmei would have a lot of questions for the management.

Look forward to your inputs.

Best Regards,

Wrisney was kind enough to respond to my mail. Have posted the details below:

Dear ,

Thank you for the email. There is a conference call on the 15th, next Wed. I will send you the details as soon as they have been finalized.

It will be an opportunity for you to hear directly from the management and to obtain a clearer picture from them.

Rgds
Wrisney

(10-05-2012, 11:11 AM)potatolover Wrote: Hi Sgmystique

Would be very grateful if you could share management's replies with forummers.
many tks.

(10-05-2012, 10:58 AM)sgmystique Wrote: Have written to August Consulting on the terrible Q3 results. Honestly it was too bad. The only thing of interest as far as Qingmei is concerned is whether the net cash on their books is real or not. If it is real there may still be value in the stock at current price levels (Provided management is open to sharing this cash with shareholders on a regular basis like they have done for the last 2 years). If it is a sham we can all write off our investments.

Hi Wrisney,

I was quiet disappointed by the Q3 results declared by Qingmei.

A 54.6% decline in turnover and a staggering 81.3% decline in Net Profits is quiet terrible. I would appreciate if you could let us know the true state of affairs at Qingmei. Have they lost some major customers because it is not possible for sales to drop so precipitously in an industry like footwear. This is a business that would see more or less stable growth rates and only minor declines if times get tougher.

BTW was there any progress for the conference call with shareholders. I am sure shareholders of Qingmei would have a lot of questions for the management.

Look forward to your inputs.

Best Regards,

(10-05-2012, 10:29 AM)peterlynch Wrote: Of course all stocks carry risks, especially S chips. That's why s chips PE is so low, Qingmei's PE is only slightly more than 1.

The reason why many continues trading at such low PE is that none of them attempt to prove themselves to be real. At a PE of 1, a share buyback is most beneficial since you will have earned back the amount after 1 year. and so long as the company remains profitable it is like a cash cow that has paid for its own cost. What's more, many of these companies are trading below net cash, does it not make sense to use $1 to buy $2? Instead, some of them even has more share placements. San Teh has been doing share buyback because of the huge cash pile and that it knows it cannot spend them all.

At a super low PE, it is also very easy to give very high dividend yield. Is it really hard for all these high ROE S-chip to even give a 10% or 20% payout ratio which will amount to a 10-20% dividend yield assuming PE of 1? Qingmei has given out high dividend before, but then again that is still not a proof that the cash on hand is real since it forms a small part of the total earning.

The excuses that many of these management like to give is that they only care about business and that if business is doing well, the stock price will follow. Some of these companies have lot of cash in hand, but they have neither given it out as dividends, nor reinvesting it in business or doing acquisition. The cash pile just grows and you wonder why are they keeping the cash and not making good use of it. Even if there's no acquisition out there that's attractive, buying your own share definitely is.

Qingmei is just one of several S Chips issuing profit warnings recently. I have seen so many that it appears to be the norm recently. Hopefully I can make it for the conference call.

This is due to the governmental measures to slow down inflation. But it is only short term. If u want to buy any s chips be prepared to keep for 1-2 years at least for them to bear fruit

sgmystique Wrote:The only thing of interest as far as Qingmei is concerned is whether the net cash on their books is real or not.

I posted earlier in this thread about their "Incredibles":

1. unbelievable worker productivity
2. amazing profitability even at low utilisation
3. Su Qingyuan's irrational selling

So far, nobody on this forum has been able to present a sensible explanation for all 3 issues, that does not require Qingmei to be a fraud, Su Qingyuan to be an idiot, or both.