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Along specuvestor's model of ABS, I started with the "S" (structure) look on Anchun.
There were actually 2 things that stood out when i looked at the who's who in the Top20 shareholder list in AR17:
(1) On page91, it details about "employee benefit trust shares". 170k shares (after consolidation) were bought up in 2014, and another 160k shares were bought back in 2017. In the same 2017, 144k were released to employees after 3 years of service. All these shares are held on trust by Dawn Vitality, a company owned by executive director Miss Dai. So, employees are actually accepting shares for their work. Of course these shares were given "free" (based on cashflow statement, it suggests these shares are given free, not subscribed at a cost to the employee) but then again, they must be of some value for them to be accepted. This amount is also not a lot in aggregate but it is still something.
(2) China XLX is a Top20 shareholder with a 3.89% stake. They haven't sold or added any since IPO in 2014. XLX looks like a downstream customer of Anchun and could probably be considered an "insider" of sorts.
These 2 things above i observed are actually things that i don't remember seeing in the "structure" of most of the S-chips that bombed (VBs could correct me if i am wrong). This is not a post for recommendation of any sort. Since we have some potential activist actions, thought it might be beneficial to all to take a closer look at this company.
AR17: http://www.anchun.com/wp-content/uploads...R-2017.pdf
There were actually 2 things that stood out when i looked at the who's who in the Top20 shareholder list in AR17:
(1) On page91, it details about "employee benefit trust shares". 170k shares (after consolidation) were bought up in 2014, and another 160k shares were bought back in 2017. In the same 2017, 144k were released to employees after 3 years of service. All these shares are held on trust by Dawn Vitality, a company owned by executive director Miss Dai. So, employees are actually accepting shares for their work. Of course these shares were given "free" (based on cashflow statement, it suggests these shares are given free, not subscribed at a cost to the employee) but then again, they must be of some value for them to be accepted. This amount is also not a lot in aggregate but it is still something.
(2) China XLX is a Top20 shareholder with a 3.89% stake. They haven't sold or added any since IPO in 2014. XLX looks like a downstream customer of Anchun and could probably be considered an "insider" of sorts.
These 2 things above i observed are actually things that i don't remember seeing in the "structure" of most of the S-chips that bombed (VBs could correct me if i am wrong). This is not a post for recommendation of any sort. Since we have some potential activist actions, thought it might be beneficial to all to take a closer look at this company.
AR17: http://www.anchun.com/wp-content/uploads...R-2017.pdf
