Thread Rating:
  • 1 Vote(s) - 4 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Best World
22-06-2020, 08:38 AM.
Post: #1041
Rainbow  Q&A before today eAGM: Best World
22 June 2020 Q&A for today eAGM BWL

Q28 on dividend
In view of the indefinite and prolonged disruption caused by the Covid-19 outbreak in all the markets that the Group operate in, the Board has decided to suspend the dividend policy for FY2019 and not declare a final dividend for FY2019 as a prudent move to conserve cash in the face of heightened economic volatility and business uncertainty.
The build-up of our cash buffer will also allow the Group to capitalise on any opportunities that may arise in such turbulent times.

Q29 on resuming trade
The trading suspension will only be lifted after we have submitted a trading resumption proposal to and upon fulfilment of the conditions required by SGX RegCo, including the finalisation and issuance of the Group's audited financial statements for FY2018 and FY2019, and SGX RegCo indicating that it has no objections to the resumption proposal.

Reminder to attend eAGM on Monday, 22 June 2020@10am

Stay home and stay safe, valuebuddies.

Find Reply
13-07-2020, 04:44 PM. (This post was last modified: 14-07-2020, 10:33 PM by dreamybear.)
Post: #1042
RE: Best World
Dear vested valuebuddies,

Pls consider signing this petition(btw, it's not initiated by me nor anyone I know). On my part, I have sent Regco my feedback concerning the long suspension earlier, as well as alert them of this petition today which likely indicates a number of investors are also in distress regarding this situation.

It seems that there aren't going to be major issues(whether running afoul of SG/China laws or fraud) uncovered from the review, despite a year of investigation.

While I believe Regco has good intentions, in the context of free mkt : for the common investor, a year of suspension ties up financial resources unnecessarily long and for the professional investor, one is unable to trade the shares based on one's knowledge of the company and industry.

Personally, as an investor, I feel that I am being "penalized" for a long time for nothing, and I can't do anything about it. Notwithstanding WB' teaching that we shd be confident in our investment choices even if the mkt closes for 10 years, I feel as opmi, we don't know what we don't know, and we are somewhat powerless / voiceless. This cld perhaps be one of the reasons why funds request a board seat(e.g. Novo Tellus/ISDN) or that WB prefers to make outright acquisitions.
=========== Signature ===========
"Let all that you do be done in love." 1 Corinthians 16:14

Find Reply
24-07-2020, 08:23 AM. (This post was last modified: 24-07-2020, 08:31 AM by ¯|_(ツ)_/¯.)
Post: #1043
Rainbow  SGX: Best World
24 July 2020 SGXX Suspended BWL

The Company’s statutory auditor, Ernst & Young LLP (EY) has considered the findings in PwC’s Interim Review Report and issued a Disclaimer of Opinion on the group’s financial statements for FY2018. The bases for EY’s Disclaimer of Opinion included concerns about the Company’s relationship and arrangement with the import agents and Vicstar, the group’s potential unrecorded transactions through the payment of partial sales proceeds by franchisees into personal bank accounts as well as the potential impact on the group’s current or prior years’ financial statements given the ongoing independent review and Legal Review. The findings of PwC as well as the Disclaimer of Opinion by EY raise concerns on whether the Company’s financial statements present a true and fair view of the group’s financial position and financial performance.
In the absence of sufficient clarity on the actual financial position of the group and legality of the business including compliance with PRC regulations, trading in the shares of the Company cannot resume in a fair, transparent and orderly manner. The Company will need to submit a proposal to resume trading that addresses concerns raised on (i) PwC’s observations and recommendations; (ii) legality of its sales and distribution model in the PRC; and (iii) lack of clarity in its financial position. SGX RegCo will consider the Company’s proposal and its audited financial statements for FY2019 before making a determination on the Company’s continuing listing on the Exchange.

For those who are keen, read the 50 pages bwl action plan

Wear mask and keep your social distance, everyone.

Find Reply
24-07-2020, 03:55 PM.
Post: #1044
RE: Best World

Very long report there. For those not interested in sifting through the report, this news article probably summarises the important parts.
=========== Signature ===========

Please do your own due diligence. Any reliance on my posts is at your own risk.

Find Reply
29-07-2020, 07:36 PM. (This post was last modified: 30-07-2020, 10:41 PM by dreamybear.)
Post: #1045
RE: SGX: Best World
(24-07-2020, 08:23 AM)¯|_(ツ)_/¯ Wrote: 24 July 2020 SGXX Suspended BWL

For those who are keen, read the 50 pages bwl action plan

There is quite a lot of content to digest and discuss, which probably takes too much effort and time for a counter which nobody knows when it will resume trading again. However, it does give an insight on how BW grew its china mkt - which can be interesting for those who wish to learn more abt overseas bizness expansion.

I just wanted to shout out my deep appreciation to fellow buddies on your selfless sharing. As early as 2017, the China DS challenges have been spotted and passionately discussed in this forum, e.g post #47x onwards. It appears DS in china will likely be a point of contention(for other DS companies as well), and from the developments, BW's china business model seem to be still evolving, i.e. BW plans to transition to DS in China eventually. Though the issues willl be resolved when that happens*, what if other issues involving DS surface after the transition ? Will there then be another round of independent review and suspension ? 

That said, investment is as much about risk mgmt as seeking returns - don't lose money and always remember that.

And finally, I think privatisation cannot be ruled out  : "SGX RegCo will consider the Company’s proposal and its audited financial statements for FY2019 before making a determination on the Company’s continuing listing on the Exchange" [Reg Announcement - 1st link above, emphasis mine]  *fingers crossed*

I do wonder whether there are any HK listed DS companies, and if not, why?

2018年中国直销公司排名  (2018 list of top China DS companies)


"On the legality of the group’s sales and distribution business in China (Legal Review), the Company’s legal advisor has opined that the group complies with the applicable franchise related laws and regulations in China , but certain features of the Franchise Model may potentially be in breach of the regulations on Direct Selling and ChuanXiao传销."  [Reg Announcement - 1st link above]

"To continue growing the demand for the Group’s products in China, the Board is pleased to announce that the Group plans to eventually transition from the current Franchise Model to direct selling, in line with the Group’s long term strategy." [Final Report - 2nd link above]

* "The Board believes that any issues which have been observed by M&T in relation to the Franchise Model should be resolved once the Group has transitioned to direct selling in China." [Final Report - 2nd link above]  

"No, the Franchise model will remain the form of distribution for DR’s Secrets products in China"    [AGM Q&A Jun 2020]

The China Conundrum

Find Reply
30-07-2020, 03:49 PM. (This post was last modified: 30-07-2020, 11:07 PM by dreamybear.)
Post: #1046
RE: SGX: Best World
(29-07-2020, 07:36 PM)dreamybear Wrote: And finally, I think privatisation cannot be ruled out  : "SGX RegCo will consider the Company’s proposal and its audited financial statements for FY2019 before making a determination on the Company’s continuing listing on the Exchange" [Reg Announcement - 1st link above, emphasis mine]  *fingers crossed*

My tots in a privatisation scenario : As D&D/HBC own abt half of BW, assuming an offer price of $2.4(example price $2.4 = P/E 15 while last traded price $1.36 = P/E 8.x), the required cash outlay would amt to 50%*550m*$2.4 = $660m. The company has cash/cash eq of about $200m+ while the recent Pedal Pulses acquisition cost ard $50m.

With respect to the offer price, the covid-19/independent review issues will have to be considered against the excellent china growth potential. In any case, there is also a possibility for D&D/HBC to collaborate with a 3rd party investor to make a joint offer. Who knows, maybe some investment banks may offer financing in view of a potential listing in HK in the future. Thinking OSIM and the $320m loan....*

As a "long suffering" shareholder(due to suspension), I am hoping for the best and just sharing my thoughts purely for discussion purposes(and I hope other shareholders here can contribute, especially what is a fair price Big Grin ) in case it really happens(so far from the developments, I personally think there is a fair chance), pls do not misconstrue as speculation(anyway, share is suspended).

Best World founders should make exit offer to minority shareholder
Thu, Jul 30, 2020 - 5:50 AM

".....SGX should therefore impose a deadline on Best World. If this deadline can't be met, the board should be made to secure an offer for minority shareholders to exit their positions at a fair and reasonable price...."

*After SGX exit, OSIM heads for HK listing as V3 Group

Find Reply

Forum Jump:

Users browsing this thread: 4 Guest(s) | Return to Top | Lite (Archive) Mode | RSS Syndication | CONTACT US: