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Although I have been warning on this counter for a long long time, I'm certainly not happy this happened because 1 friend is still in it.
The standard red flags were there. It was just a matter of time. Haiz.....
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Are these SGX listed China companies whose cash are in China subject to capital control? It mentioned that the management has yet to obtain the approval of the PRC State Administration of Foreign Exchange (SAFE) for the remittance of the funds from the Company’s wholly-owned subsidiary, Fujian Haimingwei Shoes Co., Ltd. Seems to me they have no control over their cash movement. Either SAFE is delaying them or HWM (which is wholly owned) is not forwarding the cash.
A CEO of a company's has a duty towards its shareholders so not contactable for such a serious event is simply not acceptable. Good thing is Audit Committee acted promptly.
I am very curious on the outcomes of the investigation.
(not vested)
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SAFE is used as excuse for too many times, as in the case of china milk. Dividends remitted out of CHina need to go thro SAfE too. There should not be selective clearance. It is quite clear the problem is with the cash, not the procedure
life goes in cycles, predictable yet uncontrollable; just like the markets, but markets give you a second chance
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(30-01-2014, 09:37 AM)Greenrookie Wrote: SAFE is used as excuse for too many times, as in the case of china milk. Dividends remitted out of CHina need to go thro SAfE too. There should not be selective clearance. It is quite clear the problem is with the cash, not the procedure
I agreed. I didn't have issue from dividend paying from YZJ, one of the S-Chip.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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So what is going on with the company audit. Seems like it gives no assurance to the authenticity of the company financial. Surely it is auditor's duty to verify cash do exist during audit. No?
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This also puts to question the credibility of SIAS to protect investors.
I have been shot down many times by people who used SIAS to support their stand in this counter.