Central Wealth Group Holdings Limited 中達集團控股有限公司

SFC fines Central Wealth Securities Investment Ltd HK$1m for breaching Financial Resources RulesStatement of Disciplinary Action
SFC, 18-Dec-2023
The broker is a 100% subsidiary of Central Weath Group (0139), which has featured in Webb-site Reports many times.
Central Wealth (0139) raises CEO's salary by 400%
Company announcement, 15-Feb-2019
The boost to HK$6m is "to provide incentive…to strive for the continual development and expansion of the Group" - but the pay is not performance-linked. Central Wealth is part of the Huarong-CMB network we warned readers about on 19-Oct-2018. The stock has dropped 64.1% since Mr Xu Ke joined the board as CEO on 27-Feb-2018.
SFC takes CMBC Capital (1141) and 6 former directors to MMTThe bubbles in CNN
SFC, 18-Dec-2018
This alleges late disclosure of market gains in its securities portfolio in 2014, including shares of Icube (0139), Heritage (0412) and Rising Development (1004), all of which have since been renamed. All 4 companies were then in what we call the "Chung Nam Network". On 8-Jan-2015, we warned the market about bubbles in 2 of them.
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) 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.
China Soft Power (0139) restructures deal to buy 1 Lincoln Road for HK$330m
Company announcement, 7-Sep-2017
Now it is buying the BVI company that owns the property, rather than the HK co that agreed to buy the BVI co. No stamp duty will be payable. Buying the property directly would have cost a prohibitive 30% in stamp duty. The owner of the vendor is not disclosed.
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 Soft Power (0139) to indirectly buy 1 Lincoln Road for HK$330m
Company announcement, 14-Jul-2017
CSP is buying a HK company for $16m, which owes $314m to complete the purchase of a BVI company which owns the property. The original purchase price was $360m so it appears that the vendor to CSP is taking a $30m loss. CSP bought 2 Lincoln Road, opposite number 1, for HK$227m in cash and convertible bonds in Nov-2016. The property is described as "a house" but records suggest it was built as 3 adjoining houses in 2008.
China Huarong Overseas gets security interest in 1.8bn shares (3.93%) of CMBC Capital (1141)
Disclosure of interest, 5-Jul-2017
China Huarong Overseas is 51% owned by China Huarong Asset Management (2799) and already owns 4.26% of CMBCC. This security interest is probably because it has loaned money against the shares held by China Soft Power (0139) which owns about 7.38% of CMBCC, including the pledged shares.
Joint Global Ltd joint venture agreement dated 15-Sep-2015
Company filing, 7-Jun-2017
Thanks to the SFC's Takeovers Code, this agreement has been published online by CMBC Capital Holdings Ltd (1141), one of the 11 entities in what we call the "Chung Nam Network" which pooled their shares in HEC Capital Ltd into Joint Global Ltd, which then imploded like a black hole. It relates to our story "The Joint Global implosion", 30-Sep-2016.
China Minsheng Bank (1988) 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 (1141) sells 2 Lincoln Road to CSPT (0139)CSPT announcement
Company announcement, 28-Nov-2016
CSPT owns 15.48% of Skyway and is paying with bonds convertible into 11.11% of CSPT, while Skyway owns 13.56% of CSPT, so this potentially increases the cross-holding. The sale values the property at HK$406m. They are selling the BVI company that indirectly owns the property, thereby avoiding all stamp duties. Skyway only acquired this company on 4-Mar-2016, so if it had bought and sold the property, the sale would have attracted 15% Special Stamp Duty, 15% Stamp Duty and 15% Buyer's Stamp Duty, a total of 45%, if anyone was mad enough to transact on those terms.
China Innovative Finance (0412) bubble
Hao Tian Development (0474) has confirmed our view by dumping 9.06% of CIFG at a 61.9% discount, still well above the net tangible asset value of $0.099. CIFG should trade below NTAV due to its appalling governance and membership of what we call the "Chung Nam Network". The purported profits of its leasing division are largely illusory and depend heavily on 1 customer in which CIFG has invested. HTD has also been allowed by HKEX to skirt the Listing Rules on corporate transactions. (26-Sep-2016)
China Soft Power (0139) lends HK$50m to Skyway (1141), its 15.78% shareholder
Company announcement, 12-Jul-2016
CSPT (0139) sells Pacific Light Cable Network project to Chairman's dad for US$11.3m
Company announcement, 31-Mar-2016
CSPT (0139) half-year results for 30-Sep-2015
Company announcement, 26-Nov-2015
Apart from humungous losses on investments in shares of companies in what we call the "Chung Nam Network", CSPT reveals that on the last day of the period, it sold West West Ltd and Four Sheets Ltd to unnamed parties for HK$45m and $30m. We can add that WW held 303 shares (5.58%) of Co-Lead Holdings Ltd, which it received in a swap in Jul-2015 for its holding in Freeman Corp Ltd, which it subscribed for $88m in Sep-2014. FS held 10m shares of HEC Capital Ltd, which it subscribed for HK$65m in Sep-2014 and at period-end was in the process of swapping for 10m shares of Joint Global Ltd.
CSPT (0139) enters MoU to build Pacific Light Cable Network, pay US$10m working fee on US$400m project
Company announcement, 13-Nov-2015
China Optoelectronics (1332) subscribes HK$90m for 225 shares (3.98%) of Co-Lead Holdings Ltd
Company announcement, 5-Nov-2015
Co-Lead is a hub in what we call the "Chung Nam Network". Before this deal it is 55.27% owned by Mason Financial (0273), 16.58% by Rentian Technology (0885), 10.13% by Dragonite (0329), 5.58% by China Soft Power Technology (0139), 3.87% by National Investment Fund (1227), 2.86% by Celebrate (8212) and 5.71% by unknown others.
China Soft Power (0139) increases to 24.19% of Skyway Securities (1141)Senworth filing
Disclosure of interest, 8-Oct-2015
The 14.75% stake was purchased for HK$434m ($0.31/share). Both companies are in what we call the "Chung Nam Network". Neither company has made an announcement. The vendor was probably Senworth Ltd, which made a corresponding filing.
Celebrate (8212) subscribes HK$50m for 2.86% of Co-Lead Holdings Ltd for HK$50m
Company announcement, 29-Jul-2015
Celebrate buys into a hub in the Chung Nam Network. Co-Lead's other holders include: Mason Financial (0273) with 55.27%, Rentian Technology (0885) with 16.58%, Dragonite (0329) with 10.13%, China Jinhai (0139) with 5.58% and National Investments Fund (1227) with 3.87%.
China Jinhai (0139) injects shares of Freeman Corp Ltd into Co-Lead Holdings LtdWillie announcement
Company announcement, 6-Jul-2015
The other holders of Co-Lead are Willie (0273), National Investments Fund (1227), Rentian Technology (0885) and, after completion, Dragonite (0329). Co-lead is a pooled holding vehicle for shares in Freeman Corp Ltd, which is one of the hubs in the "Chung Nam Network". The deal also allows Benny Kwong Kai Sing to buy 6.50% of FCL from Co-Lead at $3.18 per FCL share. As a result FCL will be 60.52% owned by Freeman Financial (0279), 32.98% owned by Co-Lead and 6.50% by Mr Kwong.
Dragonite (0329) injects shares of Freeman Corp Ltd into Co-Lead Holdings LtdWillie announcement
Company announcement, 6-Jul-2015
It fails to state that West West Ltd is owned by China Jinhai (0139). The other holders of Co-Lead are Willie (0273), National Investments Fund (1227) and Rentian Technology (0885). Co-lead is a pooled holding vehicle for shares in Freeman Corp Ltd, which is one of the hubs in the "Chung Nam Network". The deal also allows Benny Kwong Kai Sing to buy 6.50% of FCL from Co-Lead at $3.18 per FCL share. As a result FCL will be 60.52% owned by Freeman Financial (0279), 32.98% owned by Co-Lead and 6.50% by Mr Kwong.
Forefront (0885) to pool holdings in Freeman Corp Ltd with Willie (0273) and anotherWillie announcement
Company announcement, 19-Jun-2015
The third holder is Up Wonderful Ltd, the owner of which is not disclosed, but we can tell you that at 31-Dec-2014 it was owned by National Investments Fund Ltd (1227). These are all in what we call the "Chung Nam Network". The pooled vehicle, Co-Lead, will be owned 5.11% by NIF, 21.90% by Forefront and 72.99% by Willie. It will own 32.69% of FCL, with 60.52% owned by Freeman (0279), 4.37% by Dragonite (0329) and 2.41% by China Jinhai (0139).
Qualipak (1332) sells 544m shares (6.92%) of Mission Capital (1141)
Disclosure of interest, 3-Jun-2015
The sale price of $0.225 was a 52.6% discount the closing price of $0.475 on 29-May-2015. On the same day, China Jinhai (0139) bought the same number of shares at $0.485 per share. So was someone in the middle, and why? All 3 companies are in what we call the "Chung Nam Network".
China Jinhai (0139) buys 6.89% of Mission Capital (1141) off-market for HK$263.84m
Disclosure of interest, 2-Jun-2015
Both are in what we call the "Chung Nam Network".
China Jinhai (0139) sells 15/F China United Centre in shell
Company announcement, 12-May-2015
The announcement fails to say who owns the buyer. We can tell you that as of 18-Sep-2012, Future Master Investments Ltd was owned by Cordoba Homes Ltd. That is 94.54% owned by HEC Capital Ltd (a hub of the "Chung Nam Network") and 5.46% owned by Mission Capital (1141). The shell deal avoids 8.5% Double Stamp Duty on the deal. The deal occurs just 6 weeks after completing the purchase of the same thing from Qualipak (1332).
China Jinhai (0139) lends HK$100m to Freeman Corp Ltd
Company announcement, 10-Apr-2015
Both companies are in the "Chung Nam Network".
The bubbles in CNN
We warn investors of 3 bubbles amounting to HK$20.0bn (US$2.58bn) in the "Chung Nam Network" of listed companies, Heritage (0412), Rising Dev (1004) and Mascotte (0136) and look at a blatantly bad decision by the board of Hao Tian (0474), and an undisclosed Very Substantial Acquisition by that company. One of the bubbles is even a Russian doll "double bubble" - one owns the other. (8-Jan-2015)
ICube (0139) lends up to HK$50m to Freeman Corp Ltd
Company announcement, 3-Dec-2014
That's on top of the HK$88m it invested in the same company in September. Both companies are in the "Chung Nam Network".
ICube (0139) buys 15/F China United Centre in shell from Qualipak (1332)Qualipak announcement
Company announcement, 28-Nov-2014
Both companies are in what we call the "Chung Nam Network". By transferring the BVI shell they avoid HK$7.82m of Double Stamp Duty at 8.5%.
ICube (0139) lends HK$75m to Cordoba Homes Ltd
Company announcement, 14-Nov-2014
The announcement fails to say who owns the borrower. As far as we know, at 18-Sep-2012 it was 100% owned by HEC Capital Ltd, which is at the core of what we call the "Chung Nam Network". ICube invested HK$65m in shares of HEC Capital Ltd on 22-Sep-2014.
iCube (0139) reduces subscription in HEC Capital Ltd to HK$65m
Company announcement, 22-Sep-2014
iCube (0139) subscribes 2.78% of Freeman Corp Ltd for HK$88m and 1.56% of HEC Capital Ltd for HK$102m
Company announcement, 21-Sep-2014
In a follow-up to the Freeman Financial (0279) announcement on Friday, it emerges that iCube has also subscribed for 1.56% of unlisted HEC Capital Ltd. All of these are in what we call the "Chung Nam Network". So that is a total network investment of $190m.
iCube (0139) subscribes 2.8% of Freeman Corp Ltd for HK$88m promissory note
Company announcement, 19-Sep-2014
As a result, the unlisted Freeman Corp Ltd will be 69.7% owned by Freeman Financial (0279), 27.5% owned by Willie (0273) and 2.8% owned by iCube (0139). Freeman Financial owns 5.8% of iCube. All are in what we call the "Chung Nam Network".
China Strategic bubble
We warn investors of a bubble in the stock of China Strategic, the 80% owner of the proposed buyer of Taiwan's Nan Shan Life Insurance, partly financed by a massive note issue convertible into 78bn shares at $0.10 each. We publish the placing list and analyse the names in the deal. Finally, we warn investors to avoid 7 companies in the "Chung Nam network", which has lost HK$6.2bn in 5 years. (13-Nov-2009)
Re PCCW Ltd proposed scheme of arrangement for privatisation
HK Court of Appeal, 11-May-2009
Re PCCW Limited scheme of arrangement
HK Court of First Instance, 6-Apr-2009
The paid advert opposing the blackout rule
With links to the signatories in Webb-site Who's Who. (29-Dec-2008)
SFC prosecutes Heritage International Holdings Ltd for disclosure failures
SFC, 10-Feb-2006
Radford (0901) ownership investigation results
Company announcement, 27-Apr-2004
Radford (0901) portfolio disclosure and ownership investigation
Company announcement, 29-Oct-2003
The SFC writes: "we note a very close relationship between the shareholders of the Company and its investments". At the suspended price of $1.34, the closed-end investment company was trading at 9.24x its NAV of 30-Sep-2003.
Manipulation probe by SFC
South China Morning Post, 7-Mar-1997
Real Grant fined for withholding records
South China Morning Post, 28-Feb-1997

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