Qingmei Group Holdings

[d.o.g.]

Totally agree, in fact if we believe the books of S-Chips here's a scheme to get rich.

1) Convince a bank to loan you 20M, buy over Qingmei (current mkt cap 16m) and you will have 67M cash.

2) Now use 20M to launch a hostile takeover of China fibretech (current mkt cap 16m). So now you have spent 40M but have obtained a total of 150M in cash from these 2 takeovers.

3) Now pay back the 20M you initially borrowed and be left with $130M. Use $35M to takeover Universal Resources to get the $109M present in its B/S.

Using this get rich scheme you will now have $200M cash and have paid off your 20M debt.

*For employees of any cash-rich companies reading this, feel free to market this idea to your directors (if they are that dumb enough) on how to "increase earnings of the company".

This is both sarcastic and funny IMHO. And it asks a good question that those who invest purely by the numbers cannot answer.

Too many investors have learnt the hard way that at best, numbers can only be part of the analysis. Depending solely on the numbers is a fool's game, especially when investing in Asia. In the US the SEC can sometimes be an effective policeman, likewise the FSA in the UK. In Asia? Hahaha... although the regulators in Hong Kong did show some teeth in recent years e.g. when they blocked Richard Li's attempt to privatise PCCW in 2009.

As usual, YMMV.

[cywong76]

In the past I ignored my own understanding of the warning signs in those S-Chips that I owned. As a result I lost a few Hundred-Thousand Dollars, (my hard-earned Retirement Fund).

I'm still licking my wounds. The warning signs were there but I looked at the false "Fundamentals" and just "buy when people were fearful".

Those of you who are still vested in this company may like to take note of some of the warning signs.

1) According to the financial statement as on 31.03.14 its Cash & Cash equivalents was 388,857,000 RMB which is about SGD 67M. The current market cap. is about SGD 18M.

If I were the boss, I'll take SGD 20M and buy up the shares and delist the company and take the cash box of about SGD 67M. Is this not a warning sign?

2) 30.04.14 > announcement > Resignation of Chief Financial Officer, Tso Sze Wai, Jackson.

3) 26.05.14 > SU QINGYUAN, EXECUTIVE DIRECTOR continued to disposed off some of his shares.

4) There are more which you can see from SGX website.

The above look very similar to those S-Chips I owned & Lost.

Not Vested.

Anybody remember ChinaPDye? ON paper, everything looks good until the CEO and his wife run road.

I was monitoring Qingmei since it was at 5 cents. If it wasn't S-Chip, I would have vested in it. But lucky, I tell myself not to touch S-chip anymore.

[sgpunter]

Just read the 1Q result. This is a joke of a company (on top of Hongwei for which I have already got a share certificate) which I am still vested in to remind myself of a harsh lesson and also because what my shares are worth are almost negligent anyway.

"The Group has been faced with losses in the last ten quarters since 4QFY12 and this has been
significantly drained the cash resources of the Group, with cash and cash equivalents reducing
from RMB581.9 million as at 30 June 2012 to RMB191.1 million as at 30 September 2014."

I'm surprised they dared to make the statement above. That's around S$80m lost in 2 years 3 months. Only after losing S$80m they have now decided on a downsizing strategy which will incur more costs and probably drain out the remainder of cash in the company. I was actually contemplating whether to attend the recent AGM to F the directors over but I decided it is not worth my petrol and blood pressure to do so. Although now I'm beginning regret not doing so a bit.

"The Group will continue to monitor the market situation and remain diligent in managing its cash
position. The Company will continue to undertake a strategic review to examine the options
regarding the restructuring of its business."

Restructure? Please, no. Just stop business, sell off whatever you can, realize half the NAV of S$0.21 I'll be ecstatic. Another big joke is clicking on the link of their website in the financial statement brings you to a website whereby the domain is for sale. Speechless.

Best part is SGX is still hoping to attract Chinese companies to list here. Please SGX, wake up your idea. You got to clean up the junkyard first. Qingmei is just one of the many out there...and I'm not going to name names.

Well, my hard earned money has been tuition fees paid to Pre-IPO investors, SGX, Bankers and the Su Family. A painful and worthwhile lesson as these S-"CHEAP" choices were made near the start of my investing journey which I hope no one else will have to go through.

[amperex]

Similar movie ( wayang ) on show at another cinema . One company ( under consumer goods - beverages ) reported earnings growth year after year. Share price was above 80 cents at one point in time. Plenty of cash but never declare any dividends. Come out with growth stories to justify why no dividends. Then macro picture ( crackdown on spending ) provide great opportunity to declare losses. Now share trading very close to single digit.

[CY09]

I am not that surprised of the results. All Qingmei is doing is drag through the quarters to burn all its non-existent cash until the true balance sheet remains. This is similar to Foreland which made its cash magically disappear from a "surprising claim made by its customer". At least, the mgmts here are more creative than Eratat's who just pulled off a Houdini ( too boring trick).

Btw if you read my previous thread on how to make s$200M, I have sounded the warning signs albeit in an amusing way. I have posted something similar too on Fujian Zhenyun's thread on how to be the top 50 richest in Singapore just by investing in Stocks listed on the SGX. In fact, I am very tempted to post this on SGX; to let SGX mgmt know they can branch into buying s-chips to boost their falling revenue income as a result of declining trading activity

[Jack31]

Funny thing is why those big institute doesn't make any noise, the losses are small change to them?
Was vested in this in 2011 and I still rem their dividend was around 13% at that time. But it was a one time big dividend and that's it.. The 13% didn't cover my losses, thinking back , was lucky to sell at abt 25% lost. Diverted after the CEO keep placing out shares at ridiculous low price quoting improving liquidity as a reason..

[sgpunter]

We may have just witnessed a classic pump and dump scenario based on the trading activity observed in this counter today...

[sgpunter]

Counter suspended as the company has ceased operations. Another one bites the dust. In the meantime while it tries to look for another viable business, it continues to burn cash (or whatever there is left of it).

I pity those people who were caught in the recent surge in volume. I have been burnt by S-Chips before including Qingmei so I can emphatize.

[Valuebuddies2016]

Counter suspended as the company has ceased operations. Another one bites the dust. In the meantime while it tries to look for another viable business, it continues to burn cash (or whatever there is left of it).

I pity those people who were caught in the recent surge in volume. I have been burnt by S-Chips before including Qingmei so I can emphatize.

Legal rep of Qingmei China has been changed without proper announcement as I was told.. How to protect the investors .. The factory in China are not longer under control .. Cannot safeguard small shareholders interest