List of Companies with Questionable Practices

[CY09]

Hi all,

Trying to compile a list of SGX listed companies with potential red flags. Below are the 3 so far I have come across. Feel free to look over and think if there are more active problematic listed companies. Goal is to help investors spot at one go companies with governance or mis reporting problems on SGX

Dasin Retail Trust

The company is technically insolvent because the assets valued on the balance sheet is false while the company has produced unexpected off balance sheet liabilites which is eroding equity. While the writing has been on the wall since 2022, the chinese managementcontinue running the REIT and draw a pay while it continues to lose money and spring more bad news.

In my view, this is another Eagle Hospitality Trust. A investigation and liqudation of the REIT property should be enacted immediately to save whatever is left for unitholders. The valuers of Dasin Retail REIT, JLL, should be inquired in how it had derived the valuations and why it has been decreasing so drastically every year.

Best World International Independent Directors

Despite being a profitable and cash rich company, the board of independent directors (ID) of Best World somehow had voted to not issue dividends (on the premise of cash conserving) while at the same time, used a questionable HR agency report to decide that the remeuration for executives of Best World be raised and the increase closely collaborates with the amount of dividends these executives had lost in lieu of no dividends announced for their shareholdings. The resulting act is that Best World executives are the top 5 highest paid CEOs/Chairman among listed companies in Singapore while its net profits are not even 10% of what these other listed companies earn.

Even among global industry comparables of the direct selling industry, these 2 executives are the one of the highest paid in the world, eclipsing the largest 2 direct sellers, Nuskin and Herbalife. 

EC World REIT

Similar to Dasin there was an inflation in property valuations which is now deflating as time goes on.  investigation and liqudation of the REIT property should be enacted immediately to save whatever is left for unitholders.

[weijian]

hi CY09,

There are lots of such "questionable" companies documented in Prof Mak's CG volumes.
https://www.valuebuddies.com/thread-8295.html

I think the stated companies above are just symptoms. What would be more educative would be understanding the causes of the above symptoms. For example, the 2 trust/reits + Eagle have a commonality where the sponsor is relatively unknown (at least locally in Spore) + the existence of opaque master leases with the sponsor.