Qingmei Group Holdings

Qingmei Group 1Q result is announced today

Quoted from the announcement below.

"Amidst this operating environment, the Group’s revenue fell 85.5% from RMB364.9 million in 1QFY12 to RMB53.0 million in 1QFY13 as sales quantity of shoe soles delivered decreased from 13.7 million pairs to 3.0 million pairs. Sales volume for MD II, MD I and RB dropped 76.1%, 78.3% and 88.2% respectively. At the gross level, the Group recorded a loss of RM18.2 million in 1QFY13. This was attributed to higher fixed overhead unit cost of production due to significantly lower production volume, the write down of inventories to net realisable value and the decrease in average selling price of its products."

Wow, this is a complete U turn, very far off from what someone (CFO?) said last announcement about bottoming out at Q3...

Wait for the counter to drop below 5 cents..

So the news article was CORRECT!!! and directors are bullshitting at AGM??

(12-11-2012, 10:32 PM)CityFarmer Wrote: Qingmei Group 1Q result is announced today

Quoted from the announcement below.

"Amidst this operating environment, the Group’s revenue fell 85.5% from RMB364.9 million in 1QFY12 to RMB53.0 million in 1QFY13 as sales quantity of shoe soles delivered decreased from 13.7 million pairs to 3.0 million pairs. Sales volume for MD II, MD I and RB dropped 76.1%, 78.3% and 88.2% respectively. At the gross level, the Group recorded a loss of RM18.2 million in 1QFY13. This was attributed to higher fixed overhead unit cost of production due to significantly lower production volume, the write down of inventories to net realisable value and the decrease in average selling price of its products."

As of now, Qingmei still has ZERO DEBT and a net cash value of 16.7 cents per shares but Mr Market only values it at 5.5 cents.

isnt this a STEAL?

The financial results can change so much! What's the protection to minority shareholders, who are at the mercy of the directors and CFO! I wonder the cash stated in the financial statements really exists!

(13-11-2012, 11:22 AM)Curiousparty Wrote: Wow, this is a complete U turn, very far off from what someone (CFO?) said last announcement about bottoming out at Q3...

Wait for the counter to drop below 5 cents..

So the news article was CORRECT!!! and directors are bullshitting at AGM??

(12-11-2012, 10:32 PM)CityFarmer Wrote: Qingmei Group 1Q result is announced today

Quoted from the announcement below.

"Amidst this operating environment, the Group’s revenue fell 85.5% from RMB364.9 million in 1QFY12 to RMB53.0 million in 1QFY13 as sales quantity of shoe soles delivered decreased from 13.7 million pairs to 3.0 million pairs. Sales volume for MD II, MD I and RB dropped 76.1%, 78.3% and 88.2% respectively. At the gross level, the Group recorded a loss of RM18.2 million in 1QFY13. This was attributed to higher fixed overhead unit cost of production due to significantly lower production volume, the write down of inventories to net realisable value and the decrease in average selling price of its products."

(13-11-2012, 11:43 AM)Underdogger Wrote: As of now, Qingmei still has ZERO DEBT and a net cash value of 16.7 cents per shares but Mr Market only values it at 5.5 cents.

isnt this a STEAL?

It is called value trap. So called because it looks like deep value but actually destroying value with little chance of turn around. Deep value or vulture investing usually have their own set of skill sets and usually involve taking management control or legal pursuits. I usually don't suggest retailers try this just for bragging rights.

Smart investors will not be fooled even if the P/E is 0.1!!!

(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.

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With such a big drop in volume from 13.7 mil to ONLY 3 mil, who is filling the remaining gap?

its competitors?

(13-11-2012, 11:22 AM)Curiousparty Wrote: Wow, this is a complete U turn, very far off from what someone (CFO?) said last announcement about bottoming out at Q3...

Wait for the counter to drop below 5 cents..

So the news article was CORRECT!!! and directors are bullshitting at AGM??

(12-11-2012, 10:32 PM)CityFarmer Wrote: Qingmei Group 1Q result is announced today

Quoted from the announcement below.

"Amidst this operating environment, the Group’s revenue fell 85.5% from RMB364.9 million in 1QFY12 to RMB53.0 million in 1QFY13 as sales quantity of shoe soles delivered decreased from 13.7 million pairs to 3.0 million pairs. Sales volume for MD II, MD I and RB dropped 76.1%, 78.3% and 88.2% respectively. At the gross level, the Group recorded a loss of RM18.2 million in 1QFY13. This was attributed to higher fixed overhead unit cost of production due to significantly lower production volume, the write down of inventories to net realisable value and the decrease in average selling price of its products."

I believe the foreign shoe brands? QM only supplies to Chinese brands? Chinese are brand conscious and as they move up the wealth segment.. unlikely they want to wear Chinese products?

NV

(15-11-2012, 11:28 PM)jovialger Wrote: I believe the foreign shoe brands? QM only supplies to Chinese brands? Chinese are brand conscious and as they move up the wealth segment.. unlikely they want to wear Chinese products?

NV

Base on info provided, QM carries brands of 双星 (Double Star), 金鼠王 (Jin Shu Wang), 康踏 (Kang Ta), 乔丹 (Qiao Dan), 贵人鸟 (K-Bird), 三六一度 (361) and 特步 (Xtep). There are quite well-known domestic brands in China.

Base on observation, general public in China still using domestic brands. Only wealthier population in first tiered city using foreign brands.

then how is it possible that volumes dropped so much? we are talking about 80%.

Are we saying that suddenly people are no longer changing their worn-out shoes?

(16-11-2012, 08:40 AM)CityFarmer Wrote:

(15-11-2012, 11:28 PM)jovialger Wrote: I believe the foreign shoe brands? QM only supplies to Chinese brands? Chinese are brand conscious and as they move up the wealth segment.. unlikely they want to wear Chinese products?

NV

Base on info provided, QM carries brands of 双星 (Double Star), 金鼠王 (Jin Shu Wang), 康踏 (Kang Ta), 乔丹 (Qiao Dan), 贵人鸟 (K-Bird), 三六一度 (361) and 特步 (Xtep). There are quite well-known domestic brands in China.

Base on observation, general public in China still using domestic brands. Only wealthier population in first tiered city using foreign brands.

Cheap imitation of foreign brands also available online? Speculation only ...

(16-11-2012, 10:06 AM)Curiousparty Wrote: then how is it possible that volumes dropped so much? we are talking about 80%.

Are we saying that suddenly people are no longer changing their worn-out shoes?

(16-11-2012, 08:40 AM)CityFarmer Wrote:

(15-11-2012, 11:28 PM)jovialger Wrote: I believe the foreign shoe brands? QM only supplies to Chinese brands? Chinese are brand conscious and as they move up the wealth segment.. unlikely they want to wear Chinese products?

NV

Base on info provided, QM carries brands of 双星 (Double Star), 金鼠王 (Jin Shu Wang), 康踏 (Kang Ta), 乔丹 (Qiao Dan), 贵人鸟 (K-Bird), 三六一度 (361) and 特步 (Xtep). There are quite well-known domestic brands in China.

Base on observation, general public in China still using domestic brands. Only wealthier population in first tiered city using foreign brands.