Dukang Distillers Holdings

[BlueKelah]

Dear fellow VBs, I lost a lot on this one, but I've cashed out and ran for my dear life. Just thought I should share this fact since I believe we should watch out for one another in this rather dangerous world. However, please make your own decision and treat what I say as input only, if you see value in it. Regards.

Thanks for sharing. Hope you have diversified enough that your total portfolio has not taken too big of a hit.

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[Bibi]

PPE increase was mainly due to the completion of a office HQ (does it sound logical to spend close to 300mil on an office building when you are right in the middle of a industry wide downturn with NO END in sight?). Inventories increased as company sourced for more and more raw materials (Again, does it make sense for you to stock up with current conditions?)

They are very good at coming out with valid reasons and can sound convincing too. If they become sporeans they might make it big in our politics.

I read it somewhere where they gave the reasons for their 2nd action, something along the line:
"We cannot wait for upturn then increase our inventories, it takes time to make wine and by then we might have nothing to sell. The wine made can be kept even if sales is poor but the longer it is stored, the more expensive it can be sold."

[BlueKelah]

as their business and share price falls, the likelyhood that the real story behind the company coming out will increase.

Refer to CY09's earlier post #150 from last year:
[Why did Dukang borrow RMB160M in Q2, despite having RMB500M cash as a group excluding the borrowed RMB160M loans.

Trouble in one of its brands? Please don't tell me Dukang has to borrow more to maintain banking relationship ]

when management start asking for the usual rights / convertible bond / share placement, once they run into cash flow problem, it will be obvious. Just like OSIM, cash rich and still asking for more fund injection.

[Wildreamz]

Yes.. One of my biggest misstep. The last straw is when they start losing money, and yet still insist on "increasing capacity cautiously".

(divested)

[Curiousparty]

http://singaporeseen.stomp.com.sg/singap...43-million

Fake bank in China operates for 1 year and swindles people of $43 million

[charlesgee]

Married trades coming again...........so obviously..........some black hands....trying to push up & dump?

Really.......anyone...got clear info?

[dydx]

The way and speed this counter has gone up in the last few sessions suggests that something positive could be coming..

[valuebuddies]

http://www.nextinsight.net/index.php/sto...uys-shares

[weijian]

While I admit I am not an expert in making any sort of alcohol or doing logistic business or any sort, it does sound a little bit out of wack (and overly forceful) to try to tag profitability to the main headline of "severe air pollution" that snares up traffic affecting the logistics of its sales agents

SEVERE AIR POLLUTION IN THE PEOPLE’S REPUBLIC OF CHINA AND PROFIT

The Board of Directors (the “Board”) of Dukang Distillers Holdings Ltd. (the “Company”, and together with its subsidiaries, the “Group”) wishes to announce that Ruyang Environmental Protection Bureau had on 21 December 2016 posted a notice issued by Ruyang County People's Government with regard to the emergency and contingency plan against severe air pollution in Ruyang. Severe air pollution and smog has reportedly been affecting traffic conditions, daily operations and productions by enterprises in the People’s Republic of China (“PRC”), particularly in central and northern PRC, in the recent years. The air quality in the PRC has since hit its worst in winter 2016. The Group has been assisting the Chinese Government to manage the air pollution and concurrently implemented some measures to reduce and control air pollution...........
.......
Although such measures did not have any material impact on the Group’s baijiu production for its second quarter ended 31 December 2016, the Group expects its overall revenue and earnings to be significantly lower for the three months ended 31 December 2016 (“2Q2017”) compared to the three months ended 31 December 2015 (“2Q2016”), mainly due to:-
(i) Austerity measures and restrictions in the PRC which further compressed the sales of high-end alcohol market;
(ii) The negative impact on the baijiu market due to a change in consumers’ drinking trend and habits to red wine and beer and a large influx of imported beers and red wine in the domestic market;
(iii) Due to the severe air pollution and smog, stricter traffic controls and poor traffic conditions had impacted the logistics of the Group’s sales agents and thereby resulting in a decrease in the Group’s sales and an increase in its inventories; and
(iv) Intensified liquor market competition in the Henan province, new products entering into the Henan market and downward adjustment of first-tier high-end liquor prices further decreased the Group’s market share in Luoyang, Zhengzhou.

http://infopub.sgx.com/FileOpen/DK%20-%2...eID=436437

[BlueKelah]

Well that's s chip for u. Use whatever narrative best suits them.

Drop in revenue from gov clampdown on corruption should have happened couple years back already, back when Macau casino revenue went down.


Could be another s-chip showing it's true colors...

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