HG Metal    Last:0.565   -

HG Metal a hidden gem ?

haha doubt they will care abt us ~

hope tis counter fly soon ~

 

Hello, those are my own guessed, thus just for consideration only and to my own opinion. Hope the old team will not come after me to sue me ! Ha Ha, lol.

 

You mentioned the motive of dumping BRC Asia at last min ! I think the outgoing teams did it so that the new come in on board cannot get the benefits of their investment on BRC previously. This is some how a very low tactics. Hip hip hooray, the arrogant and the nb ch2% b#% old team is out ! We should look forward to this year 2010 !

abc2020      ( Date: 04-Jan-2010 18:02) Posted: Tomorrow not need to vote.... two of the director already resign. Really dont know what is their motive to sell some of BRC shares before leaving. I believe major holder, MR Sia which currently hold 14.41% able to bring HG metal into black. I notice that, investment of Mr Sia in Hg metal never least than 10% since 2003.  04-01-2010   Detailed Reason(s) for cessation * MR WEE IS LEAVING THE COMPANY TO PURSUE OTHER PERSONAL INTERESTS.     4-01-2010   Detailed Reason(s) for cessation * MR LEE IS LEAVING THE COMPANY TO PURSUE OTHER PERSONAL INTERESTS.

 

2 gone and 1 to be go soon today ! Good Luck to the new upcoming team ! This seems got potential to re-look at this counter again. Just my point of thought.

 

Published January 5, 2010

HG Metal's CEO, exec director resign Move comes a day before EGM called to oust them   By JAMIE LEE   (SINGAPORE) In a surprising turn, two directors at HG Metal Manufacturing are resigning just a day before they could have been deposed.   Reason for quitting: Mr Wee (above) and executive director Lee Leng Loke say they would be leaving the company 'to pursue other personal interests' This dramatic twist came right before today's extraordinary general meeting (EGM) being held for shareholders to decide if chief executive Wee Piew, chairman and founding member Tan Chan Too and executive director Lee Leng Loke should stay. And just hours after Mr Lee and Mr Wee resigned, their replacements were announced in the form of Chng Hee Kok - chief executive of Hartawan Holdings - and hedge fund manager Roy Ling Chung Yee. The entire series of events was kick-started last month when non-executive director Sia Ling Sing - who is also HG Metal's largest shareholder - proposed to boot out the three executives over the five straight quarters of losses posted by the company thus far. Through his private ship-building and chartering companies Lingco Marine and Lingco Holdings, Mr Sia called for the meeting to be held at Hotel Re! The choice of venue may be significant. The boutique hotel is run by ship-chartering and property company Hartawan. Formerly known as Vita Holdings, it is now led by chairman Winstedt Chong Thim Pheng, who owns 3.7 per cent of HG Metal, Bloomberg data showed. Mr Chong is a former substantial shareholder of HG Metal who sold down his stake then of more than 10 per cent in 2005. Hartawan also has Mr Chng and Tan Eng Liang on its board. Both are former Members of Parliament whom Mr Sia recommended as replacement directors for the executives. Mr Tan Eng Liang will replace Mr Tan Chan Too if the latter is booted out today. Together with his direct stake of 3.75 per cent, Mr Sia controls 14.4 per cent of the company on paper. Mr Lee and Mr Wee announced yesterday that they would be leaving the company 'to pursue other personal interests'. They gave no further details in the regulatory filings. What is odd is the decision of the two executives to quit just a day before the EGM. This signals that Mr Sia may have garnered strong support from other shareholders in his move to remove these directors. This is especially so since the three directors seemed ready to defend their positions just two weeks ago. Late last month, the trio said that the current string of losses has not been compared against the company's stretch of profits since its listing in 2002. They also suggested that Mr Sia's comparison between HG Metal's successive losses and that of other steel companies - which did not post the same long-running losses - could be misleading because of the vast differences in the nature of businesses and the types of steel handled. Mr Sia could not be contacted by BT at press time. The resignations follow another by an independent director, Samuel Poon, on Dec 30, 2009, with Mr Poon saying that the EGM has caused 'some disruption and instabilities to the company's operations'. 'The shareholders that called for resignation of all executive directors have so far not suggested alternative management to run the operations of the company,' Mr Poon added. For the fiscal year ended September 2009, HG Metal posted a net loss of $67.5 million, reversing from a net profit of $22.6 million a year ago. Based on figures cited in a circular to shareholders, the steel stockist's five consecutive quarterly losses started in the fourth quarter of FY 2008 when it posted a post-tax loss of $33.4 million.

 

Date of Appointment *	04-01-2010
Name of Person*	LING CHUNG YEE ROY
Age *	33
Country of principal residence *	Singapore
The Board's comments on this appointment (including rationale, selection criteria, and the search and nomination process) *	TO FILL THE VACANCY ARISING FROM RESIGNATIONS OF MR WEE PIEW AND MR LEE LENG LOKE

 

 

Date of Appointment *	04-01-2010
Name of Person*	MR CHNG HEE KOK
Age *	61
Country of principal residence *	Singapore
The Board's comments on this appointment (including rationale, selection criteria, and the search and nomination process) *	TO FILL THE VACANCY ARISING FROM THE RESIGNATION OF MR WEE PIEW, MR LEE LENG LOKE AND MR SAMUEL POON.

 

Tomorrow not need to vote.... two of the director already resign. Really dont know what is their motive to sell some of BRC shares before leaving. I believe major holder, MR Sia which currently hold 14.41% able to bring HG metal into black. I notice that, investment of Mr Sia in Hg metal never least than 10% since 2003. 

04-01-2010
Detailed Reason(s) for cessation *	MR WEE IS LEAVING THE COMPANY TO PURSUE OTHER PERSONAL INTERESTS.

 

4-01-2010
Detailed Reason(s) for cessation *	MR LEE IS LEAVING THE COMPANY TO PURSUE OTHER PERSONAL INTERESTS.

 

any news on tt AGM?

 

Very strange that current management of HGPL in such a hurry to dispose off BRC - that is more profitable than HGPL! Also, disposal at rock bottom price, HGPL only make $2.7m from this disposal (i.e. gain of 0.34c per share, less than half cent). Is co in financial trouble - short of working capital or is mgt planning to run road due to potential removal @EGM ? Come Monday could be good trading opportunity if HGPL price drop on this news. See SGX announcement 24/12/09.

"HGPL currently holds 293,434,619 BRC Shares, representing approximately 43.67% of the issued and paid-up share capital of BRC Asia. Upon completion of the Placement and

assuming that all 80,641,080 shares in BRC Asia have been placed out, HGPL will hold 212,793,539 BRC Shares, representing approximately 31.67% of the issued and paid-up

share capital of BRC Asia. The Company's interest in BRC Asia will therefore decrease from 43.67% to 31.67% upon the completion of the Placement (assuming that all 80,641,080

shares in BRC Asia have been placed out)."

 

anyone here will attend to AGM....... and vote to remove the current directors? please pm me..... i would like to ask you to become my proxy.

 

Read :

http://www.sgx.com/wps/portal/marketplace/mp-en/listed_companies_info/company_announcements/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3gTn1DXUFNLYwMLtwA3AyMvZ3Mf09AAA_dAc6B8JE55A3czArq99KPSc_KTgPb4eeTnpuoX5EZUOjoqKgIAFOdGOQ!!/dl3/d3/L2dBISEvZ0FBIS9nQSEh/

Now the  founder and his team, tells their story.

So how !

You tell your story, then they retailate their story. But I am still curious, how come within 1 year, the total asset reduce from S$660m to S$171m. this is fantastic story. And they still have the cheek to elaborate, nb cb.

(legend : nb is nabei and cb is chee b@#$%)

 

This counter everyday almost top volume, but no values, the price is stagnant ! I wonder who is buying er ...and who is selling on the other hands !! ha ha, maybe the power struggle founder asking close friends and relatives to buy to support their % holding. Sky not clear yet, punters watch out ! Goodluck.

 

I don't agreed, a mistake is a mistake, since you have been given 5 chances - 5 consecutives of Qtr lost. And even you have proven that you did make profits for this organisation and did bring in dividends for investor, but all are in an equal and normal amount, but now in one Years time, you just lost all the previous that you have accumulated.

 

Read the EGM circular, and compare with the peers and see and judge yourself what others same trade is doing !! Then you comment fairly. 

abc2xyz      ( Date: 07-Dec-2009 11:31) Posted: I think if the directors are veterans in the business, give them a chance to prove themselves so that when the economy improves, the credit does not go to the wrong people.  But if the business profits despite bad economy, then you can really recognize the heroes. Not vested.

 

I think if the directors are veterans in the business, give them a chance to prove themselves so that when the economy improves, the credit does not go to the wrong people.  But if the business profits despite bad economy, then you can really recognize the heroes.

Not vested.

 

Top Print Edition Stories   Published December 4, 2009   Mr Wee: Acknowledged that the losses have been a concern for the board but said that the situation did not warrant a removal of directors Look at the comment, so arrogant, not a simple of humble and remorseful, claim "Mr Wee also noted that he and the other two directors have been veterans in the business." Then how come still lost so much $$ since you claims that you know your business. Take a look at other company example :   C2O, the new mgt ask the old mgt to get out. Before doing that, they give them chance, if in their IT business if more than 3 consecutives lost in their core IT distribution business,then the new mgt will want to dispose of the IT business and concentrate the shipping busines. Thus, this year eventually, the founder is asked to go. So same thing, here, what talking cock you are " in football game", come on la, this is all share holders hard earn $$. If you cannot perform, please don't occupied the tiolet bowl, let others do something ! Maybe new mgt can turn the company into a profitable shipping business !

 

Yesterday Business Times :

Published December 4, 2009

5 quarters of losses haunt HG Metal directors Lingco units call for their removal; EGM date set on Jan 5   By JAMIE LEE   (SINGAPORE) The reason for the bid by a non-executive director of HG Metal Manufacturing to oust three executive directors, including the CEO and the chairman, has come into the open: five straight quarters of losses at the steel products company.   Mr Wee: Acknowledged that the losses have been a concern for the board but said that the situation did not warrant a removal of directors 'We are deeply concerned with the poor financial performance of the group, which is evident from the consecutive losses made in the last five quarters,' said substantial shareholders Lingco Marine and Lingco Holdings in a circular yesterday. The two Lingco units, which are involved in shipbuilding and ship chartering, are linked to non-executive director Sia Ling Sing, who has been on the board of HG Metal since 2003. Mr Sia - who is the managing director of the Lingco group of companies - holds a 3.75 per cent direct stake in HG Metal. He also has further control through a 10.66 per cent stake held by Lingco Marine. The two Lingco units have called for an extraordinary general meeting on Jan 5 next year to remove CEO Wee Piew, chairman and founding member Tan Chan Too and executive director Lee Leng Loke. The meeting will be held at Hotel Re!. They have also proposed to replace them with former members of parliament Chng Hee Kok and Tan Eng Liang, as well as hedge fund manager Roy Ling Chung Yee. For the fiscal year ended September 2009, the steel stockist posted a net loss of $67.5 million, against a net profit of $22.6 million a year ago. Based on post-tax losses cited in the circular, the company's five consecutive quarterly losses started in the fourth quarter of FY2008 when it registered a post-tax loss of $33.4 million. The Lingo units acknowledged the impact of the global economic crisis but expressed concern that the company continued to suffer heavy losses even after the substantial inventory write-down of $47 million in the fourth quarter of FY2008. The company also made inventory write-downs of $9 million and $14.3 million for Q3 and Q4 respectively of FY2009. This was despite including profits from recently acquired BRC Asia - of which Mr Sia is also a board member - from the first quarter of fiscal 2009. The same circular showed that BRC Asia had made a total post-tax profit of $16.5 million for the fiscal 2009. They also compared its results with competitors' such as those of Hupsteel, Lee Metal and Union Steel, which did not post the same stretch of losses. Mr Wee said that he was disappointed with the ouster bid, saying that Mr Sia had never threatened to remove him and the other executive directors from the board. Mr Wee acknowledged that the losses have been a concern for the board but said that the situation did not warrant a removal of directors. He argued the need to take into account the profitable periods since the company's 2002 listing. 'It's like a football match. You can't lose one game and sack the manager,' said Mr Wee. He also defended the write-downs that dragged the company into the red, saying that it has to make conservative provisions with the huge swings in steel prices. He noted that the largest write-down of $47 million that triggered the reversal into losses in the fiscal 2008's fourth quarter was due to sharp falls in steel prices and follows a record nine months of profits for the company. Mr Wee also noted that he and the other two directors have been veterans in the business. Shares of HG Metal closed unchanged yesterday at 13.5 cents.

 

 

I totally agreed, time will tell and we as the minor share investors would want our hard earn $$ being protected as well as our interest. I would like to see the new mgt do well in  terms to engage good people to run the show ! Not like F@#$%Y family business that they still think they can do anything and everything, nabei (in hokkien). 

Do they know what is a public listed means - Belong to public who hold the shares, but please be honest and answerable to how the hell you managed to lost S$60m in one year (the old mgt)! Don't use arrogant way and not sincere simple kind of remorse and say " in this time last year ,only 4th Q lost S$33m, we cut to S$11.5m lost this year, come on man, a lost is still a lost, please show the truth figure, whole YEAR 2009, ending SEP in one fiscal year, lost is S$60M. I invested so many years, please don't take us for a fool.

 

I guess we can view this move from two angles, a political move to remove the CEO and founder at the opportune moment when the results are not performing. Other that that how to remove them, what excuse to use?

The other angle is to bring in fresh blood to prop up the company business.

Your guess is as good as mine. Only time will tell.

Hope all these power struggle does not affect the interests of the shareholders.

 

The appointment of former Members of Parliament Chng Hee Kok and former Minister of State (Finance) Tan Eng Liang, make me wonder is SG getting involve in HG ? looking at past history, these Chng and Tan don't simply walk into any companies just like that.

in the past they have appeared in many boardrooms changes representing some organisation  ???  Temasek or Gov  ???? 

After losing Natsteel, SG may be making a comeback.

HG owned BRC which itself is the biggest steel welded mesh manufacturer in Singapore.

 

 

Thus if Mr. Chng and Mr. Tan who are Independent Directors of many listed companies are appointed as IDs, then nothing will have changed.  If they are appointed Executive Directors and can play the required roles of EDs, then it might open judgement as the years pass by whether the company can attribute profits or losses to them.

abc2xyz      ( Date: 04-Dec-2009 14:33) Posted: If you want to know the truth, you will be disheartened.  Independent directors play little or no role in most public companies.  There are there for the sake of fulfilling the statutory requirements.  I attended many EGMs and AGMs and heard few words if any at most times from IDs. equator2010      ( Date: 04-Dec-2009 14:25) Posted: RE: knightrider's kind post as follows: [QUOTE] They have also proposed to appoint former Members of Parliament Chng Hee Kok and Tan Eng Liang, as well as hedge fund manager Roy Ling Chung Yee as replacements. [UNQUOTE] I wonder if these incumbents possess any related experience (to steel/ construction industry), networking skills (big MUST in Asia markets), proven track record of successful business management ? afraid I can't make it to attend the EGM. My concern is that investors might usher in another breed of incapable managers and this merry-go-round will destroy the corporate image and performance.