Novo Group   

Any opinion about Novo Group

yap, at least it they did not make any red in FY09 or else they can forget about the dual listing

 

After seeing Abterra failure to get dual-listed this year, I guess the Management will wait till after FY 10 results are released in June 21 before proceeding for dual listing. HKSE requires companies to report HK$30 million net profit in the last financial year and a further HK$20 million in the previous 2 years. Novo FY 09 earnings was small...so I guess it will wait for FY 10 results first. Novo earned US$10.1 million in 9M 10. 

 

No difference. The plant haven't been construct yet and would only be ready in 2012. So it has no financial effect on Novo's results. Novo was prepared to invest US$24 million in this project - perhaps they found something better ie a iron ore mine ??? Either way, if it turns out to be a success in 2012, Novo can exercise their right to subscribe into the scrap processing Company.

 

What does that imply to the fundamentals of this stock? How will the investor perceive this piece of news? Please advise.......

 

UPDATES ON SCRAP STEEL PROCESSING PROJECT

Further to the announcement made on 13 January 2010 in relation to the proposed scrap steel  processing project (the “Project”), the Board of Directors of Novo Group Ltd. (the “Company”, and  together with its subsidiaries, the “Group”) wishes to update Shareholders as follows:

1. Subsequent to receiving the letter of approval from the local authority of the PRC regarding the  reservation of the land to Iron and Steel Resources Limited (“ISRL”) for the construction of the  Project, the parties have been working on the definitive terms and conditions for the allocation  of land with the relevant authorities. In view that the definitive terms and conditions imposed by  the relevant authorities are more stringent than the original understandings of the Company, in  particular, in respect of the investment commitment requirements, the Company has decided  not to participate in the Project at this stage. Instead, the joint venture partner of ISRL, (which is unrelated to the Directors and substantial shareholders of the Company) (“JV Partner”) and  following to the disposal of entire shareholding of 55% in ISRL by the Company to the JV partner, will continue to explore the opportunity to undertake the Project at its own costs.. The Project Investment Agreement was signed by the JV partner and Local government recently.

2. Taking into account the core expertise of the Group in global steel trading and distribution, strong networks of the Group with banks and financiers which helps in sourcing financing, the Group’s strong networks with PRC steel mills and overseas steel mills which can provide the supply of raw materials for the proposed scrap steel processing plant and the Group’s network of customers which can become the potential customers base for products of the scrap steel processing plant, as well as the Group’s familiarity with the entire supply chain of steel production and its products from raw material, semi-finished products to finished products, the JV Partner has already signed a legal binding MOU with the Group, offering a first right of refusal to subscribe for up to 60% of the equity in the investment holding company controlled by the JV Partner that will be undertaking the Project. The subscription price and other terms of the subscription for the Group’s investment in the said investment company will be mutually agreed between the parties at a later date should the Group wishes to participate in the equity of the said investment company in future. In such event, the Company will make the necessary
announcements, seek approval from Shareholders (where necessary) and comply with the applicable requirements of the Listing Manual.

BY ORDER OF THE BOARD
Yu Wing Keung, Dicky
Executive Chairman
7 May 2010

 

DISPOSAL OF INDIRECT SUBSIDIARY – IRON AND STEEL RESOURCES LIMITED

The Board of Directors of Novo Group Ltd. (the “Company") wishes to announce that Global Wealth Trading Limited, a wholly-owned subsidiary of the Company, had disposed its entire shareholding of 55% in Iron and Steel Resources Limited (“ISRL”) (together with its subsidiary, Xintong (Taizhou) Steel Products Limited) for an aggregate consideration of HK$5,500 (the “Disposal”) to Mr. Lin Xiutong, who is not related to any of the Directors or controlling shareholders of the Company.

The Disposal is not expected to have any significant impact on the financial position of the Company for the current financial year.

None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the above transactions.

Updates on scrap steel processing project to be undertaken by ISRL is being released separately to the Singapore Exchange Securities Trading Limited.

BY ORDER OF THE BOARD
Yu Wing Keung, Dicky
Executive Chairman
7 May 2010

 

Looks like Novo have decided to stop their proposed investment in a scrap processing plant (to be operational in 2012) due to the higher than anticipated cost. It has divested its share of the project for HK$5,500 to its JV partner. If the project turns to be a success, Novo have the right to subscribe up to 60% of the project at a later date. Novo was prepared to fork out US$24 million for this investment. Could they have a better target in sight ?

 

Back to 20 cents. 

 

0.195 !!! what happen ??

 

hitting 0.2 soon

 

Time to accumulate this counter........anything 0.20 and below, just go ahead and buy to put in your freezer........Happy investing

 

grandmaster89,

 

any impact to the organisation on the piece of news you posted? Thanks

 

INCORPORATION OF A SUBSIDIARY

The Board of Directors of Novo Group Ltd. (the “Company") wishes to announce the incorporation of the
following subsidiary:

Name : Hua Qiang (Shanghai) Trading Limited 上海华强贸易有限公司
Registered Capital : RMB5,000,000
Paid-up capital : RMB5,000,000
Principal Activities : Trading of metal products and materials
Country of Incorporation : People's Republic of China

The incorporation of the aforesaid company was funded through internal resources and is not expected
to have any significant impact on the financial position of the Company for the current financial year.

None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in
the above transactions.

BY ORDER OF THE BOARD
Yu Wing Keung, Dicky
Executive Chairman
26 April 2010

 

haha.......i have kept my novo shares in the freezer too...... ; when the dual listing gonna starts? any spectacular news...?  

 

Last minute small sell-down LOL. 

Keeping my Novo shares in the freezer till dual listing is confirmed or some spectacular news is announced. 

 

Gone case 0.215 !!!!!!!!!!1

 

should have waited a bit longer.....still think that it will dip below 0.22..perhaps back to 0.20

 

Just bought at 0.22. Hope it does not drop further.... Sigh....

risktaker      ( Date: 19-Apr-2010 23:15) Posted: I will surely go in @ 0.22 :) Happy to buy below 0.23 placement price

 

Will join you in buying at around 0.22-0.23 price level. Just hope the BBs will do the same as well. Cheers!

risktaker      ( Date: 19-Apr-2010 23:17) Posted: Any BB here are in line with me to buy up this baby to $0.50 + ?

 

Any BB here are in line with me to buy up this baby to $0.50 + ?

 

I will surely go in @ 0.22 :) Happy to buy below 0.23 placement price

 

 

Good to compare the operating results and the valuation of Novo's rivals - Abterra, Federal and Albedo. Then, we can see how wonderful Novo is hehe :)