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(06-12-2014, 09:55 PM)CityFarmer Wrote: The company financial is ugly...
I guess the first thing we should look at when we assess a business is whether it has a competitive moat. This can be evident from the financials (i.e. margins and returns), but sometimes merely looking at an industry and whether it has low/high barriers to entry makes it easy to sift out the wheat from the chaff.
For Xpress' case, I recall it was a major printer for Annual Reports of listed companies - but many companies have now since "gone green" and started using CD-ROMs for soft copy annual reports, along with a 1-3 page summary of the key financials as well as the Chairman's Statement or MD&A. Such a shift in demand, along with the reduced used of print media and the introduction of online media sources, would definitely be permanently detrimental to Xpress' business.
The MD&A taken from the latest financials (year ended July 31, 2014) tells a sorry tale:-
"Due to the rapidly changing trends in the overall print industry and the rise of new media, traditional commercial printing businesses are facing immense pressure to transform to cope with the uncertain business conditions facing the industry.
This adverse industry trend is exacerbated by the difficult business environment in which the Group operates. The impact of these challenges can be seen in the growing number of small, medium and big printers closing down while those remaining in operation had to face a sharp decline in business, especially in recent months. This gave rise to excess capacity thus leading to aggressive price wars and fierce competition among printers. As a result, the Group has experienced significant downward pressure on business volume."
It also seems strange that this new owner (who is taking a 31% stake in the Company) is running a company which sells sauces and condiments. Not very sure how that gels with knowledge in running a printing firm!
I feel sorry for the owners though - they have had to pledge their personal assets as collateral for a loan for a failing business, meaning there is a chance they may lose a substantial chunk of their assets. 
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We should never assume Chapter 11, wouldn't happen in SGX...
HSBC takes legal action to wind up Xpress Holdings
SINGAPORE (Jan 13): HSBC Institutional Trust Services (HSBCITS) has filed an application to wind up Xpress Holdings ( Financial Dashboard), saying the printing firm had failed to pay more than $900,000 in rental arrears.
The amount of $913,863.57 is related to a lease agreement between the company and HSBCITS for the period from Jan 30, 2008 to Jan 29, 2015.
The action by HSBCITS, which also wants to appoint a liquidator for the company, was taken despite Xpress having paid a security deposit of $981,878, the Mainboard-listed firm said in a regulatory filing, adding that it has been in talks to repay the arrears since July last year.
The winding-up application is scheduled to be heard before the Supreme Court on Jan 30.
Xpress shares rose 12.5% to 0.9 cent yesterday.
http://www.theedgemarkets.com/sg/article...s-holdings
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The company remains in trouble...
(not vested)
Xpress ordered to pay creditor in High Court judgement
SINGAPORE (May 27): The Singapore High Court has ordered Xpress Holdings ( Financial Dashboard) to pay plaintiff Thong Soon Seng a total of $1.08 million in damages.
In an update on the legal proceedings to the Singapore Exchange, Xpress said the judgement was made in respect to the writ of summons issued by the lawyers of Thong on Oct 23, 2014, to the printing company over unpaid debts.
The case was heard in the High Court on May 19 and 20, 2015.
The damages include the principle sum of $1 million; interest at 5.33% per annum from the date of the writ to the date of judgment; costs of $40,000 and disbursements of $7,611.25.
Xpress closed unchanged at 1.7 cents yesterday.
http://www.theedgemarkets.com/sg/article...-judgement
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SGX issues warnings against Xpress Holdings and its ex-CEO
Singapore Exchange (SGX) has issued a warning to Xpress Holdings Limited (Xpress) for breaches of Listing Rule
704(20), which requires a company to immediately disclose winding-up applications filed against it or its
subsidiaries. Xpress did not make immediate disclosure of two winding-up applications filed against the company
and its subsidiary, Xpress Print Pte Ltd.
SGX also issued a warning to Fong Kah Kuen @ Foong Kah Kuen (Mr Fong), Xpress’ former Executive Chairman
and CEO, for his role in relation to the breaches of Listing Rule 704(20).
...
http://infopub.sgx.com/FileOpen/Regulato...eID=352746
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The financial situation of this company is in very bad shape.... More to come, I reckon.
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Hmm... more trouble for the Xpress Holding founder. The "truth" of a person, can only be revealed during adversity...
Xpress Holdings' KK Fong sued over loan
16 Jul 2015 09:00
By Selina Lum
A businessman agreed to lend $500,000 to the founder of listed printing company Xpress Holdings without having met him.
Mr Thong Soon Seng said he met Mr KK Fong for the first time when he handed over the cash - five stacks of $1,000 notes - at a meeting with three others present.
Mr Fong, 62, signed an agreement to repay the loan with interest at 13 per cent in the first month and 10 per cent in the second.
Now, Mr Thong, 50, is suing Mr Fong for repayment after four cheques issued by the latter bounced. Mr Fong does not deny taking the loan but says he received only $390,000. He contends the interest charged was so exorbitant that the deal is not legally enforceable.
...
Source: Straits Times
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The company has changed its name to A-Smart Holdings Ltd with effect from 14 October 2016.
Specuvestor: Asset - Business - Structure.
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(16-07-2015, 10:00 AM)CityFarmer Wrote: Hmm... more trouble for the Xpress Holding founder. The "truth" of a person, can only be revealed during adversity...
Xpress Holdings' KK Fong sued over loan
16 Jul 2015 09:00
By Selina Lum
A businessman agreed to lend $500,000 to the founder of listed printing company Xpress Holdings without having met him.
Mr Thong Soon Seng said he met Mr KK Fong for the first time when he handed over the cash - five stacks of $1,000 notes - at a meeting with three others present.
Mr Fong, 62, signed an agreement to repay the loan with interest at 13 per cent in the first month and 10 per cent in the second.
Now, Mr Thong, 50, is suing Mr Fong for repayment after four cheques issued by the latter bounced. Mr Fong does not deny taking the loan but says he received only $390,000. He contends the interest charged was so exorbitant that the deal is not legally enforceable.
...
Source: Straits Times
Is it legal for a person to lend to another for high interest rates? Its considered similar to loan shark lending and illegal in Spore?
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(15-10-2016, 05:58 PM)Bibi Wrote: Is it legal for a person to lend to another for high interest rates? Its considered similar to loan shark lending and illegal in Spore?
There is no limit for those annual income is $30,000 or more.
"If your annual income is $30,000 or more, the caps above are not applicable and interest rate is to be agreed upon between the moneylender and the borrower."
https://www.mlaw.gov.sg/content/rom/en/i...glish.html
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