China Essence

[CityFarmer]

A good case study of a slowly-death company. Interestingly, no sales, but 2 mil in S&D expense. A peek into the company balance sheet, the only asset left are land right, and receivables. Net asset is negative at 674 mil RMB, due to loan (bank loan and CB) and payable.

Why bank didn't pull the plug?

China Essence still mired in losses

SINGAPORE (Feb 11): Potato-based food manufacturer China Essence Group ( Financial Dashboard) managed to shrink its net loss in 3QFY15 to RMB27.22 million ($5.9 million) from RMB39.5 million despite not making any sales in the quarter.
Nonetheless, China Essence’s net loss for 9MFY15 jumped more than fivefold RMB552.703 million compared to a net loss of RMB103.88 million a year ago.

Although it made no sale, China Essence said it still incurred selling and distribution expenses of RMB2 million. Administrative expenses also increased 37.3% to RMB68.7 million due to the provision for impairment of trade receivables, depreciation, insurance, and staff-related expenses.
...
http://www.theedgemarkets.com/sg/article...red-losses

[happyharvest]

NON-BINDING MEMORANDUM OF UNDERSTANDING - A VERY SUBSTANTIAL ACQUISITION OR REVERSE TAKEOVER



no wonder I feel there is hidden buying recently

[CityFarmer]

It doesn't look good to both the company, and the ED Stephen Chow... 

Director of suspended China Essence quits after one month on job
...
http://www.theedgemarkets.com/sg/article...-month-job

[CityFarmer]

It is a good case study, on how bad can a S-Chip goes wrong...

China Essence cancels AGM; ‘unauthorised transactions’ remain unresolved

SINGAPORE (Oct 29): Potato producer China Essence has postponed its annual general meeting for FY2015 ended March yet again.

On Aug 17, the company had received the approval from SGX to postpone its AGM to Oct 31, but the meeting is now cancelled.

China Essence says it is not able to hold the AGM because the company was not able to locate its former chairman and CEO, Zhao Libin, who was found to have made unauthorised transactions in at least two subsidiaries. Despite the help of former CFO Yap Kong Wai and various channels, the current board was unable to reach Zhao to obtain more information about the case.

On Sept 4, Moore Stephens had notified China Essence that the shareholding of at least two subsidiaries had been changed to certain individuals in April 2015.
...
http://www.theedgemarkets.com/sg/article...unresolved