Future World Financial Holdings Limited 未來世界金融控股有限公司

A deeper dive into CMBC, CSPT and FWF
After raw-nerve responses from CMBC Capital (1141) and China Soft Power Technology (0139) to our Huarong-CMB network diagram, we zoom in on their network and also look at CMBC's exposure to the controller of 3 more listed companies. (21-Oct-2018)
The Huarong-CMB network: 26 stocks not to own
In our first circuit diagram since the infamous Enigma Network, we examine the overlapping networks, bubbles and funding surrounding 26 HK-listed companies that your portfolio would probably do better without. (19-Oct-2018)
Future World (0572) interim results reveal purchase and losses on 470 Bitcoins
Company announcement, 28-Aug-2018
On 20-Feb-2018 the group bought 470 Bitcoins from "a security customer" for HK$41.5m or about US$11,287 per Bitcoin. On 2-Mar-2018, the group and the unnamed customer "mutually agreed to set off the payables due to each other". The group lost HK$18.352m on the bet up to 30-Jun-2018.
Future World (0572) completes 1 Lincoln Road acquisition and increases loan facility to CSPT (0139) to HK$270m
Company announcement, 25-Apr-2018
CSPT (0139) swaps 1 Lincoln Road for shares in FWF (0572)Future World announcement
Company announcement, 29-Dec-2017
FWF owns 9.21% of CSPT, just below the 10% threshold at which this would be a connected transaction. CSPT owns 8.48% of FWF which will increase to 21.46% on completion. Both are in what we call the "Chung Nam Network". The deal involves the transfer of the BVI company that owns the house, thereby avoiding a prohibitive 30% stamp duty on the $400m property.
Future World (0572) lends HK$150m to CSPT (0139)
Company announcement, 19-Sep-2017
CSPT owns 8.69% of Future World, so it's not quite a connected transaction. Future World owns 11.56% of CSPT.
FWF (0572) and CSPT (0139) issue 470m shares to each otherCSPT announcement
Company announcement, 27-Jul-2017
This increases CSPT from 3.42% to 9.95% of FWF, and FWF from 0.82% to 5.16% of CSPT. Staying under the 10% threshhold in the Listing Rules, neither will become a connected person of the other.
China Minsheng Bank (0245) takes over Skyway Securities (1141)
Company announcement, 8-Mar-2017
Skyway is a company in what we call the "Chung Nam Network" (CNN). Also involved as a smaller purchaser and subscriber in this deal is China Huarong Overseas, a 51% subsidiary of China Huarong Asset Management (2799). Skyway will distribute its holdings of 2 other CNN members: 13.56% of China Soft Power Technology (CSPT, 0139) and 4.87% of Future World Financial (0572). CSPT owns 15.43% of Skyway, so it will receive shares in itself.
Skyway Securities (1141) buys 2 Lincoln Road from Central Wealth Financial (0572) at HK$403mCWF announcement
Company announcement, 4-Mar-2016
Skyway is buying the BVI shell that owns the house via a HK subsidiary, avoiding 23.5% or $94.7m in Buyer's Stamp Duty (15%) and Double Stamp Duty (8.5%). CWF completed the purchase of the HK subsidiary on 30-Nov-2015. CWF reveals that the ultimate vendor then is a substantial shareholder of Skyway and an Executive Director of Skyway is sister of that person. So that person must be Lam Hoi Sze, brother of Lin Yuehe, Chairman of Skyway since 1-Mar-2016. CWF will become a 9.31% shareholder of Skyway.
China For You (0572) buys 19 Cumberland Road, Kowloon
Company announcement, 2-Feb-2016
CFY is actually buying a HK company for HK$117m, which owns the property with a mortgage of up to HK$117m. The property is valued at $240m. The vendor, Eternal Vantage Investment Ltd, is owned by a "merchant" whose name is not disclosed, but she is the niece of the vendor in another acquisition announced on 17-Aug-2015. Eternal Vantage obtained a loan facility of HK$200m from Skyway Securities (1141) on 19-Nov-2015. Transferring the company avoids 23.5% in Buyer's Stamp Duty and Double Stamp Duty on the house. Instead they pay 0.2% on the value of the shares.
China For You (0572) buys 2 Lincoln Road at HK$400m gross
Company announcement, 17-Aug-2015
The property is valued at HK$400m but they are buying the HK company that owns it, Metro Victor, with bank debt of $190m, for HK$210m net, of which $80m is in cash and the rest is a 2% 2-year note. The corporate transfer saves 23.5% in Buyer's Stamp Duty (15%) and Double Stamp Duty (8.5%) that anyone but a permanent resident without a home would pay. Instead they will pay 0.2% on the HK shares, or HK$380k. Metro Victor was owned by Hang Fat Ginseng (0911) until 2-Apr-2012, before its IPO. The sale then valued the property at HK$237m.
China Packaging (0572) loses control of operating subsidiary after chairman went missing
Company announcement, 25-Mar-2014
China Packaging (0572) suspends missing Chairman
Company announcement, 28-Jan-2014
Deutsche Bank petitions to wind up China Packaging over toxic derivatives
Company announcement, 9-Jul-2009
Deloitte quits as China Packaging auditor over unresolved issues
Company announcement, 8-Jul-2009
Breach of Listing Rules: late results
Company announcement, 30-Jun-2009
Termination of toxic derivatives by Deutsche Bank after non-payment
Company announcement, 15-May-2009
Breach of Listing Rules: late results, due to problems with audit
Company announcement, 30-Apr-2009
Comment: a tin pot company opens a can of worms.
Termination of Deutsche Bank toxic derivatives
Company announcement, 11-Nov-2008
Sinotronics follows the lead of First Natural Foods and declines to comply with payment request. DB then terminates. Now what about China Packaging?
Termination of Deutsche Bank toxic derivative
Company announcement, 3-Nov-2008
First Natural Foods says it was "induced" by Deutsche Bank's "representations" to sign the contract, and now regards it as unenforceable. Comment: good, now what about Sinotronics and China Packaging, amongst others?
Deutsche Bank's toxic derivatives
Two years ago, we successfully deterred the issuance of further toxic convertibles by listed companies in Hong Kong. Now we find that another bank is peddling toxic derivatives to small listed companies, including three small, apparently cash-rich, HK-listed industrial companies from Fujian. Both sides are to blame. Listed companies should only use derivatives to reduce risk, not to increase it, and banks should not be selling such unsuitable and toxic products to unsophisticated clients. (30-Nov-2007)

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