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stan19 Member	26-Mar-2011 13:01        stan19 About Contact  Quote this Post!
x 0   x 0  Alert Admin	even they sell to public in open market... they will announce changed of holding? hpong5      ( Date: 26-Mar-2011 12:34) Posted: Should have. The easier way is to check on the SGX's Companies' Announcement page for any change in the substantial shareholders' shareholding. Maybe you can check from the date they listed in SGX till now. stan19      ( Date: 26-Mar-2011 12:30) Posted: anyway to check whos the current major shareholder? eg. the company name etc...
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hpong5 Master	26-Mar-2011 12:34        hpong5 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	Should have. The easier way is to check on the SGX's Companies' Announcement page for any change in the substantial shareholders' shareholding. Maybe you can check from the date they listed in SGX till now. stan19      ( Date: 26-Mar-2011 12:30) Posted: anyway to check whos the current major shareholder? eg. the company name etc.... hpong5      ( Date: 26-Mar-2011 12:28) Posted: Also, if the big shareholders really wants to run, they should have ran when the share price was 0.40plus, 0.30plus or even 0.20plus.
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stan19 Member	26-Mar-2011 12:30        stan19 About Contact  Quote this Post!
x 0   x 0  Alert Admin	anyway to check whos the current major shareholder? eg. the company name etc.... hpong5      ( Date: 26-Mar-2011 12:28) Posted: Also, if the big shareholders really wants to run, they should have ran when the share price was 0.40plus, 0.30plus or even 0.20plus.
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hpong5 Master	26-Mar-2011 12:28        hpong5 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	Also, if the big shareholders really wants to run, they should have ran when the share price was 0.40plus, 0.30plus or even 0.20plus.
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hpong5 Master	26-Mar-2011 12:23        hpong5 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	I believe those foreign institutions which have invested in the dual listing would have done the necessary checks on the company's shareholders' shareholding transactions prior to investing in the KDR. But one thing puzzling is the big drop during debut, this is something no analysts can explain till now. stan19      ( Date: 26-Mar-2011 12:17) Posted: hpong5 really encouraging... but only now then i know their big share holder really did sold the the share below IPO price.... This is reallly too fishy,,, james87      ( Date: 26-Mar-2011 12:12) Posted: Thats very encouraging hpong5....but it is really hard not to relate it to some negative possibilities. Anyway, it would be the last time i ever invest in S-chips. No more china PRC company...
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stan19 Member	26-Mar-2011 12:17        stan19 About Contact  Quote this Post!
x 0   x 1  Alert Admin	hpong5 really encouraging... but only now then i know their big share holder really did sold the the share below IPO price.... This is reallly too fishy,,, james87      ( Date: 26-Mar-2011 12:12) Posted: Thats very encouraging hpong5....but it is really hard not to relate it to some negative possibilities. Anyway, it would be the last time i ever invest in S-chips. No more china PRC company.... hpong5      ( Date: 26-Mar-2011 12:09) Posted: Another possibility is cgx had used some of the money for their upstream expansion plans but due to poor book keeping that's why cash balance cannot be verified or confirmed. Many possibilities, positives, neutral or bad, it's anyone's guess. CEO sold his shares can be for many reasons too, not necessarily bad sometimes.
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james87 Veteran	26-Mar-2011 12:12        james87 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Thats very encouraging hpong5....but it is really hard not to relate it to some negative possibilities. Anyway, it would be the last time i ever invest in S-chips. No more china PRC company.... hpong5      ( Date: 26-Mar-2011 12:09) Posted: Another possibility is cgx had used some of the money for their upstream expansion plans but due to poor book keeping that's why cash balance cannot be verified or confirmed. Many possibilities, positives, neutral or bad, it's anyone's guess. CEO sold his shares can be for many reasons too, not necessarily bad sometimes.
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hpong5 Master	26-Mar-2011 12:09        hpong5 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	Another possibility is cgx had used some of the money for their upstream expansion plans but due to poor book keeping that's why cash balance cannot be verified or confirmed. Many possibilities, positives, neutral or bad, it's anyone's guess. CEO sold his shares can be for many reasons too, not necessarily bad sometimes.
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james87 Veteran	26-Mar-2011 12:05        james87 About Contact  Quote this Post!
x 0   x 0  Alert Admin	You still looking to get back the invested money?....I sort of loss hope already, Always hoping hoping hoping...and it turned out to be bad ...worst.....and wat else.. stan19      ( Date: 26-Mar-2011 12:02) Posted: hope it is not a fraud.... james87      ( Date: 26-Mar-2011 11:28) Posted: Haiz....dunno why these people wanna cheat investor money ...isn't it better to do it the right way for the company to progress? You tarnish your reputation and name for such fraud...Now not hoping for anything already.... If it is indeed a fraud...would the CEO be liable? jailed?
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stan19 Member	26-Mar-2011 12:02        stan19 About Contact  Quote this Post!
x 0   x 0  Alert Admin	hope it is not a fraud.... james87      ( Date: 26-Mar-2011 11:28) Posted: Haiz....dunno why these people wanna cheat investor money ...isn't it better to do it the right way for the company to progress? You tarnish your reputation and name for such fraud...Now not hoping for anything already.... If it is indeed a fraud...would the CEO be liable? jailed?
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hpong5 Master	26-Mar-2011 12:00        hpong5 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	Wow! Sounds like IPO money cannot be accounted for. If that's the case, really BIG issues. And will very likely be suspended for a very long time.
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james87 Veteran	26-Mar-2011 11:28        james87 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Haiz....dunno why these people wanna cheat investor money ...isn't it better to do it the right way for the company to progress? You tarnish your reputation and name for such fraud...Now not hoping for anything already.... If it is indeed a fraud...would the CEO be liable? jailed?
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stan19 Member	26-Mar-2011 10:22        stan19 About Contact  Quote this Post!
x 0   x 0  Alert Admin	getting worse.... flyersummer      ( Date: 26-Mar-2011 10:03) Posted: Mar 26, 2011 NEWS ANALYSIS China Gaoxian scandal evokes chilling parallels Similarities with FerroChina scandal in 2008 a scary reminder to stay vigilant By Goh Eng Yeow, Senior Correspondent China Gaoxian founder Cao Xiangbin sold 60 million shares at the point of listing. IT MAY look like just another S-chip train wreck, but the accounting irregularities raised at textile maker China Gaoxian are far more worrying. While China Hongxing Sports and Hongwei Technologies, which both reported accounting problems last month, listed more than five years ago, China Gaoxian made its debut only 18 months ago. This makes this latest S-chip scandal all the more serious, because China Gaoxian listed six months after clean-up measures were implemented following a spate of earlier S-chip irregularities. As one of the biggest IPOs of 2009, China Gaoxian was supposed to flag an all-clear signal to investors that it was back to business as usual for S-chips. After all, its independent directors included Mr Philip Chan, a former listings head with the Singapore Exchange. In January, China Gaoxian rode high on a strong vote of investor confidence to raise $240 million from South Korean investors after getting its stock sponsored as a depository receipt listing in Seoul. So its trading suspension this week is a big blow to the already tarnished S-chip sector and may sound the death knell for similar fund-raising exercises by other S-chips in Seoul. It is also worth noting the interesting parallels between China Gaoxian and steel-coil maker FerroChina, which was suspended from trading more than two years ago. Just to jolt the memory, FerroChina was also riding high with investors when it suddenly closed shop in October 2008, purportedly because banks refused to roll-over its short-term loans. But as some traders noted, the warning signals had been there for years, if anyone had cared to look. Company insiders had been whittling down their stakes, selling about 155 million shares, or 18 per cent of the company, between 2005 and 2008. And as a company purportedly sitting on a huge cash hoard, it had short-term debts of 2.33 billion yuan, with banks taking literally everything - bank deposits, inventories, buildings - as collateral for their loans. Now take a look at China Gaoxian and one will notice more than a passing resemblance to FerroChina. The company's 2009 prospectus showed that executive chairman and founder Cao Xiangbin sold 60 million shares at the IPO issue price of 26 cents apiece at the point of listing. A year later when the lock-up period ended for major shareholders, Carry Luck, a company owned by one Mr Hong Rong Zhi, lost no time in selling out too. In just two days last September, Carry Luck sold 53 million shares at 19.5 cents apiece and another 25.1 million shares at 19 cents each - both well below the 26-cent listing price. The sales took Carry Luck's stake to 4.99 per cent from 10.42 per cent. Another telling sign: the company had raised $78.2 million from its IPO here in 2009 and another $223.8 million from selling 600 million new shares in Seoul in January. Yet, like FerroChina, it had behaved like a cash-strapped firm, asking customers to pay up in cash and drawing down on its bank credit lines. It was this contradiction that prompted the SGX to put a query to the company. In hindsight, investors should have asked why China Gaoxian needed to raise so much cash over such a short period if its growth was self-sustaining. And what happens to that huge sum now? Is it still in the company's coffers? And shouldn't a question have been asked about the huge sales of China Gaoxian stock by a major shareholder last September, at below the IPO issue price? It is strange that irregularities could surface at China Gaoxian with FerroChina scandal still fresh in investors' minds. And it is a chilling reminder to all investors to stay vigilant at all times. engyeow@sph.com.sg
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flyersummer Member	26-Mar-2011 10:03        flyersummer About Contact  Quote this Post!
x 0   x 0  Alert Admin	Mar 26, 2011 NEWS ANALYSIS China Gaoxian scandal evokes chilling parallels Similarities with FerroChina scandal in 2008 a scary reminder to stay vigilant By Goh Eng Yeow, Senior Correspondent China Gaoxian founder Cao Xiangbin sold 60 million shares at the point of listing. IT MAY look like just another S-chip train wreck, but the accounting irregularities raised at textile maker China Gaoxian are far more worrying. While China Hongxing Sports and Hongwei Technologies, which both reported accounting problems last month, listed more than five years ago, China Gaoxian made its debut only 18 months ago. This makes this latest S-chip scandal all the more serious, because China Gaoxian listed six months after clean-up measures were implemented following a spate of earlier S-chip irregularities. As one of the biggest IPOs of 2009, China Gaoxian was supposed to flag an all-clear signal to investors that it was back to business as usual for S-chips. After all, its independent directors included Mr Philip Chan, a former listings head with the Singapore Exchange. In January, China Gaoxian rode high on a strong vote of investor confidence to raise $240 million from South Korean investors after getting its stock sponsored as a depository receipt listing in Seoul. So its trading suspension this week is a big blow to the already tarnished S-chip sector and may sound the death knell for similar fund-raising exercises by other S-chips in Seoul. It is also worth noting the interesting parallels between China Gaoxian and steel-coil maker FerroChina, which was suspended from trading more than two years ago. Just to jolt the memory, FerroChina was also riding high with investors when it suddenly closed shop in October 2008, purportedly because banks refused to roll-over its short-term loans. But as some traders noted, the warning signals had been there for years, if anyone had cared to look. Company insiders had been whittling down their stakes, selling about 155 million shares, or 18 per cent of the company, between 2005 and 2008. And as a company purportedly sitting on a huge cash hoard, it had short-term debts of 2.33 billion yuan, with banks taking literally everything - bank deposits, inventories, buildings - as collateral for their loans. Now take a look at China Gaoxian and one will notice more than a passing resemblance to FerroChina. The company's 2009 prospectus showed that executive chairman and founder Cao Xiangbin sold 60 million shares at the IPO issue price of 26 cents apiece at the point of listing. A year later when the lock-up period ended for major shareholders, Carry Luck, a company owned by one Mr Hong Rong Zhi, lost no time in selling out too. In just two days last September, Carry Luck sold 53 million shares at 19.5 cents apiece and another 25.1 million shares at 19 cents each - both well below the 26-cent listing price. The sales took Carry Luck's stake to 4.99 per cent from 10.42 per cent. Another telling sign: the company had raised $78.2 million from its IPO here in 2009 and another $223.8 million from selling 600 million new shares in Seoul in January. Yet, like FerroChina, it had behaved like a cash-strapped firm, asking customers to pay up in cash and drawing down on its bank credit lines. It was this contradiction that prompted the SGX to put a query to the company. In hindsight, investors should have asked why China Gaoxian needed to raise so much cash over such a short period if its growth was self-sustaining. And what happens to that huge sum now? Is it still in the company's coffers? And shouldn't a question have been asked about the huge sales of China Gaoxian stock by a major shareholder last September, at below the IPO issue price? It is strange that irregularities could surface at China Gaoxian with FerroChina scandal still fresh in investors' minds. And it is a chilling reminder to all investors to stay vigilant at all times. engyeow@sph.com.sg
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Vanpersie Member	26-Mar-2011 01:10        Vanpersie About Contact  Quote this Post!
x 0   x 0  Alert Admin	Not true, the report mentions another subsidiary that lent money to the company... DelphinusSnow      ( Date: 26-Mar-2011 00:47) Posted: i think the company only have those 2 subsidiaries...gaoxian is only the holding company of the former 2....and the money had already been deployed to those 2 subsidiaries. as to your take on the CEO's answers, i'm pretty sure he did query his accountants/CFO first....like you said, he seems solid enuff...so dun think he  " dun give a damn" and  anyhow give answer without seeking his a/ctt's opinions first.
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DelphinusSnow Member	26-Mar-2011 00:47        DelphinusSnow About Contact  Quote this Post!
x 0   x 0  Alert Admin	i think the company only have those 2 subsidiaries...gaoxian is only the holding company of the former 2....and the money had already been deployed to those 2 subsidiaries. as to your take on the CEO's answers, i'm pretty sure he did query his accountants/CFO first....like you said, he seems solid enuff...so dun think he  " dun give a damn" and  anyhow give answer without seeking his a/ctt's opinions first.
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Vanpersie Member	26-Mar-2011 00:31        Vanpersie About Contact  Quote this Post!
x 0   x 0  Alert Admin	Just have another look at the figures in the unaudited financial reports ended 31/12/2010: 1) Cash and cash equivalents Group level: RMB1,062m Company level: RMB3m 2) Cash generated from operations: RMB522m, to which the trade and other receivables contributed RMB212m Bad news is that all the cash are with the subsidiaries. Korea stock exchange has issued their queries by asking some tough and in-depth questions, now it is time for SGX to do their part by demanding an answer as to the size of the cash that EY could not verify. Anyone here can share how many subsidiaries that GX has, and the size of the two in question? The bright  side of the figures  is that, my guess, someone in the subsidiaries saw huge inflow of cash collections and his eyes became big and red , since the internal control (let's assume) was weak or not existing at all, he then took away some of it... I read an article  about the CEO, he  belongs to of those traditional  one-man-build up-the empire  stories. the intention to mess up his own business built thru years of blood and sweat is nil, and as long  he and top management are clean, the fundamental of the company remains unchanged. Just by looking at the way the CEO talks about the operations, he appears to me  a technically know-how person who  knows inside out of the textile business, but when it comes to financials, he is pretty blur. I believe he was aware of the auditor's query, but did not give a damn because he has no idea how serious this could be, and when SGX inquired, he did not link the selldown to the audit issues because he really did not understand why auditor' words can have such an impact.. That sums up his handicap in financial fronts. Again, the possibility of him cheating is unlikely. medivh      ( Date: 25-Mar-2011 23:34) Posted: My 2c thots: 1) Don't fall in love with attractive share prices. The fact of SSH dumping this share shows more secrets are yet to be uncovered. When investor can no longer trust a company because it keeps hidden skeletons in the closet, it is detrimental and will only go down further. *unless something positve and not negative comes out from the audit report. 2) If the company has no hidden secrets, it wouldn't take professional auditors so long -> suspension -> causing investors worries -> lost of confidence. 3) Why suspend? I have mentioned in my previous thread on the only reason why CEO want to request for suspension  is the  need to buy time to find good reasons to cover up for the pitfalls they already know in their books. To me whether CGX survive depends very much on whether they are going to clean up their act and regain investor's confidence to  invest. When this Saga is over, it will probably be like aftermath of " the day after tomorrow" .  This is just a probable scenario: (not for the faint hearted) Lost of confidence -> share px sharp  drop -> lost of monies in their balance sheet -> unable to pay back loans -> wind up whatever progress they have in their undeveloped land. Unless some BB back them up, else like i say GG (good game) hpong5      ( Date: 25-Mar-2011 21:30) Posted: In fact, if green lights are given to lift suspension by end of April, the current price seems attractive now for investment given their expansion plans which are already kinda underway. So lets see if cgx will survive this s***.
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hpong5 Master	26-Mar-2011 00:16        hpong5 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	If bankrupt, investors jialat lor. But unlikely lah. Though the price kelong shot up until 0.40plus but can dual list at krx also got some substance. Consider the current price a chance for people to get in again loh. But if worried better don't buy, at your own risk appetite. Sgx still has other counters. james87      ( Date: 26-Mar-2011 00:01) Posted: How bout in the case of China Hongxing? Has it requested to be relisted again? I just hope that CGX wont becaz of this issue then go bankrupt....btw, even if the stock is suspended, the company is still resuming business right?
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james87 Veteran	26-Mar-2011 00:01        james87 About Contact  Quote this Post!
x 0   x 0  Alert Admin	How bout in the case of China Hongxing? Has it requested to be relisted again? I just hope that CGX wont becaz of this issue then go bankrupt....btw, even if the stock is suspended, the company is still resuming business right?
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hpong5 Master	25-Mar-2011 23:57        hpong5 About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	Need to wait for the results of the investigation and green light. This kind of leaked news about audit issues will definitely cause a sharp drop in price...the bbs will sell first likewise will most people if they knew. If investigation shows hopeless case then game over. Otherwise still can consider attractive for investment if cgx resumes trading. medivh      ( Date: 25-Mar-2011 23:34) Posted: My 2c thots: 1) Don't fall in love with attractive share prices. The fact of SSH dumping this share shows more secrets are yet to be uncovered. When investor can no longer trust a company because it keeps hidden skeletons in the closet, it is detrimental and will only go down further. *unless something positve and not negative comes out from the audit report. 2) If the company has no hidden secrets, it wouldn't take professional auditors so long -> suspension -> causing investors worries -> lost of confidence. 3) Why suspend? I have mentioned in my previous thread on the only reason why CEO want to request for suspension  is the  need to buy time to find good reasons to cover up for the pitfalls they already know in their books. To me whether CGX survive depends very much on whether they are going to clean up their act and regain investor's confidence to  invest. When this Saga is over, it will probably be like aftermath of " the day after tomorrow" .  This is just a probable scenario: (not for the faint hearted) Lost of confidence -> share px sharp  drop -> lost of monies in their balance sheet -> unable to pay back loans -> wind up whatever progress they have in their undeveloped land. Unless some BB back them up, else like i say GG (good game) hpong5      ( Date: 25-Mar-2011 21:30) Posted: In fact, if green lights are given to lift suspension by end of April, the current price seems attractive now for investment given their expansion plans which are already kinda underway. So lets see if cgx will survive this s***.
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