Eratat Lifestyle

[Johncute]

They had not paying salary to workers since Aug last year.
Definitely in some kind of financial trouble. Which explains why they are so desperate to get the bond from SHK with unreasonable interest rate

http://wickedonna1.tumblr.com/post/73754.../2014-1-17

http://wz.wen.oeeee.com/Content/159101.htm

[Boon]

Here are my observations on the two links:

a) http://app.jinjiang.gov.cn/gkxxw/dwgk/ne...p?id=33846
b) http://www.jjjjb.com.cn/html/2013-03/25/...371993.htm

1) Chendai town (陈埭镇) is a town under Jinjiang City (晋江市),
2) Jinjiang City is under Quanzhou City (泉州市)
3) “Fujian Eratat”, “Haimingwei” and “Wangshida” are all in Chendai Town
4) “Quangang Hongli” is in Shanyao Town, Quangang District, Quanzhou City.
5) Link a) covers taxpayers (with above RMB 2 million tax paid) in Chendai Town ONLY, in 2012 ; “Haimingwei” and “Wangshida” were not on the list ( implying amount of tax paid was less than RMB 2 million ) ; “Fujian Eratat” paid between RMB 5 to 8 million of tax ; “Quangang Hongli” is not located in Chendai Town and therefore not on the list.
6) Link b) covers only taxpayers (with above RMB 10 million of tax paid) in Jingjiang City ONLY, which include Chendai Town ; All 3 subsidiaries of Eratat were not on the list as no one paid above RMB 10 million in taxes according to link a) ; “Quangang Hongli” is not located within Jingjiang City and therefore not on the list.

(Not Vested)

[Greenrookie]

Here are my observations on the two links:

a) http://app.jinjiang.gov.cn/gkxxw/dwgk/ne...p?id=33846
b) http://www.jjjjb.com.cn/html/2013-03/25/...371993.htm

1) Chendai town (陈埭镇) is a town under Jinjiang City (晋江市),
2) Jinjiang City is under Quanzhou City (泉州市)
3) “Fujian Eratat”, “Haimingwei” and “Wangshida” are all in Chendai Town
4) “Quangang Hongli” is in Shanyao Town, Quangang District, Quanzhou City.
5) Link a) covers taxpayers (with above RMB 2 million tax paid) in Chendai Town ONLY, in 2012 ; “Haimingwei” and “Wangshida” were not on the list ( implying amount of tax paid was less than RMB 2 million ) ; “Fujian Eratat” paid between RMB 5 to 8 million of tax ; “Quangang Hongli” is not located in Chendai Town and therefore not on the list.
6) Link b) covers only taxpayers (with above RMB 10 million of tax paid) in Jingjiang City ONLY, which include Chendai Town ; All 3 subsidiaries of Eratat were not on the list as no one paid above RMB 10 million in taxes according to link a) ; “Quangang Hongli” is not located within Jingjiang City and therefore not on the list.

(Not Vested)

Wow!! Boon, u know china at the back of your hand! Anyway, it points to the same conclusion that something is amiss. I can't remember the actual figure, by from the footnote of 2012 AR, haimingwei supposed to have pay income tax in excess of 10million. Wanshida is dormant company iirc. As a group, they should have paid 49 mio income tax. Haimingwei do the bulk of the business, quanzhou subsidiary used to be dormant.

[Boon]

Greenrookie,

I don't China that well - it is a huge country. I rely on Google and/or Baidu - haha!

This is an interesting link: http://www.fjqz.gov.cn/9CEA2D0DF0DA20016...4czgp.html

Scroll to : 附件6: 泉州市2012年度在泉纳税额达500万元以上的民营企业参考名单

Non of the subsidiaries of Eratat seems to be on the list.

(Not Vested)

[GPD]

Surely the CFO knows the finances of the company. So he is aware that the company has huge cash but still has to take to route of raising fund for the company expansion. So which is the likely scenario?
A) The cash aren't real. Everything is just wayang wayang to lure investor money in.
B) The cash is real but the CEO is no releasing it.
C) The cash is real but the CEO cannot releasing it.
It seems a great risk to risk one's career if it is (A).

As professional investor, SHK should know the risk involves. So is it that the interest of 12.5% is too tempting to walk away knowing the sort of scandal surrounding S-Chip particular those with huge cash and low market valuation?

Also the most recent scandal is on another textile related company, Foreland which I am still waiting to see what gets play out. One by one they are falling apart.

(not vested in either)

[BestPrice]

http://brand.shoes.net.cn/eratat

.
.
2009年，鳄莱特企业荣获08-09年度“AAA级信用企业”
.
.
2009年，林建程总裁荣获“中国十大最具成长性CEO”

[wahkao]

http://brand.shoes.net.cn/eratat

.
.
2009年，鳄莱特企业荣获08-09年度“AAA级信用企业”
.
.
2009年，林建程总裁荣获“中国十大最具成长性CEO”

maybe the CEO suddenly comes back with a big horde of cash in the bank?

[BlueKelah]

http://brand.shoes.net.cn/eratat
2009年，鳄莱特企业荣获08-09年度“AAA级信用企业”
2009年，林建程总裁荣获“中国十大最具成长性CEO”

maybe the CEO suddenly comes back with a big horde of cash in the bank?

We will find out soon enough...

[specuvestor]

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.

Just to recap...
Eratat: Receives SIAS Investors' Choice Award For Corporate Governance.
11 Nov 2013 11:28

Eratat Lifestyle Limited has been awarded Runner-up of the "Most Transparent Company Award 2013, Mainboard Small Caps Category", by the Securities Investors Association of Singapore at the SIAS 14th Investors' Choice Awards Dinner Presentation Ceremony.
http://repository.shareinvestor.com/rpt_...pe/si_news

This is priceless... they always manage to make a joke of themselves... their timing is impeccable... That takes skills

Looks like the timeline of February looks spot on... The mystery to me is still why SHK would in all sanity do the deal with them... and where did the money go...

"What that means basically is that if any year they can't repatriate the money out from China for whatever reasons, the shareholders will know in February, even if they have hoard of cash on the consolidated basis So this is not something that can be dragged which comes back to the issue of why they need cash now at such high price."
http://www.valuebuddies.com/thread-1167-...l#pid55648

d.o.g. has a good writeup on this post and next: http://www.valuebuddies.com/thread-1167-...l#pid54553

Another example of investing based just on the "Asset Layer" without regards to the "business layer" and "structure layer"... despite the great analysis it is a value trap, NOTHING to do with hindside if people just take notice of the red flags and not be swayed by greed, deep value or punt stocks.

Always remind ourselves that no tickets needed to learn if we just be diligent in learning from observation
http://www.valuebuddies.com/thread-1167-...l#pid54899

[gordonkim]

Total car crash. But can't help watching.

So, what possible outcomes? Obviously pure speculation now but might be interesting exercise?

Big question to me is are revenues fake or not?

In other words: is it just BS that is in tatters and therefore if that is fixed maybe a going concern can be saved, or are both BS and revenues fake and so whole thing dead?

What do you think?


(not vested)