Wednesday 2nd September 2015
Dear Reader,
NEW ARTICLES
Cheng
& Cheng's EPS snafu
The HKICPA sanctions the audit firm and its director, but fails to
disclose the listed company involved. We'll tell you who it was. (1-Sep-2015)
Challenges for China and
implications for Hong Kong
Slides from a presentation by David Webb
to the Oxford University Hong Kong Society annual dinner last
night. (22-Aug-2015)
IN OTHER NEWS
Ms Mak Wai
Man fined HK$25k+costs by HKICPA for exaggerating CV
HKICPA, 31-Aug-2015
Unusually, the complaint
came not from the HKICPA but from a member, Gilbert Cho Kui Keung. The media
release states that the complaint was made under s34(1AAA). That's an indirect
way of saying that after the Council decided not to refer the complaint to the
Disciplinary Panels, he forced them to do so using this section. Well done Mr
Cho and shame on the HKICPA - once again demonstrating why self-regulation
doesn't work.
Concentration warning in Noble House (8246)
SFC, 28-Aug-2015
At today's closing price of $5.28, the company has a
market value of $2266m, but its net assets at 30-Jun-2015 were $83.8m, so the
loss-making firm trades at 27x NAV.
4 in
court for alleged illegal use of computers to get school interview questions
ICAC, 28-Aug-2015
This is another
stretch of the Crimes Ordinance using the offence of "obtaining access to a
computer with a view to dishonest gain for herself or another". The ICAC says
that the teachers' smartphones are computers, but presumably the claim is that
the teachers used them to take pictures of the question sheets before they were
returned. If they had instead used a digital camera, or even an analogue film
camera, then the offence would not apply. Another reason to amend the ordinance.
Last
batch of defendants sentenced for sick leave fraud
ICAC, 25-Aug-2015
Mr Cheung Siu Fai wins the
frequent-liar prize for obtaining the largest number of false sick leave
certificates from the Chinese Medicine Practitioner Chan Tung, with 193 of them.
Webb on "All About Money"
RTHK, 22-Aug-2015
Video segment starts at 13:23. Clips in English with Cantonese
narration and subtitles.
Concentration warning in Evergrande Health (0708)
Company announcement, 21-Aug-2015
We would
add that the NAV per share at 31-Dec-2014 was $0.528 (or $0.0528 after the
forthcoming 10:1 split). At the closing price on 21-Aug-2015 of $16.08, the
stock is valued at 30.5x NAV.
No body, no motive but securities firm director given life sentence for
murdering hostess mistress
South China Morning
Post, 19-Aug-2015
Ivan Chan Man Sum was an INED of Lisi Group (0526)
from 14-Jun-2006 until 1-Jan-2013, 15 months after his mistress disappeared.
Lisi was known as Magician Industries until 2010.
Allan (0684): AGM poll results
Company
announcement, 19-Aug-2015
We voted against Prof Lo Chung Mau as INED,
because he didn't attend the AGM, nor has he done so for many years. Webb-site
editor David Webb holds over 11% of this company. In HK, INEDs serve at the
pleasure of controlling shareholders.
HKSAR v Carson Yeung Ka Sing
HK Court of Final
Appeal, 14-Aug-2015
Mr Yeung gets bail pending his final appeal to be
heard from 31-May to 2-Jun-2016, on matters of "great and general importance",
including the question of whether it is necessary for the prosection to prove,
as an element of the offence of money laundering, that the proceeds were in fact
proceeds of an indictable offence. The outcome of the appeal could mark a
turning point, because until now prosecutors have relied on defendants simply
having "reasonable grounds to believe" that money is dirty without proving that
it is, and numerous convictions have been based on that.
Awesome Chinese missiles
People's Daily,
12-Aug-2015
Have you ever noticed that democracies don't parade their
missiles in the capital on national day? Imagine that in the Mall in Washington
DC on 4th July. Fireworks yes, missile displays no. OK, so the UK has trooping
the colour - but that is about brass bands and men in funny hats.
China Galaxy Securities (6881) cuts final dividend after going ex
Company announcement, 7-Aug-2015
More than 3
months after completing a share placement on 5-May-2015, and after going
ex-dividend on 2-Jul-2015, CGS now says that the dividend will be cut by 21%
from CNY 0.16 to CNY 0.126447 per share (pre-tax) in order to divide the same
amount of profit over a larger share base. This is wrong-headed. Investors who
sold on or after the ex-date but before this announcement will be worse off
because of it. They also persist with the inane mainland habit of declaring
dividends "per 10 shares" rather than per share.
HKSAR v Rafael Hui Si Yan & others
HK Court of
Appeal, 5-Aug-2015
Justice Michael Lunn sets out the timetable for
the size and filing of written submissions in the appeals.
And much more besides...
Remember that, apart from our occasional
artisan articles, you can follow Webb-site Reports via RSS,
Twitter or
Facebook.
Pass it on!
This free newsletter goes to over 21,000 subscribers. If you enjoy the site, then please
invite a friend to find out
what they are missing and subscribe!