Friday 18th September 2015

Dear Reader,

If you haven't checked Webb-site recently (and who doesn't?), here's what we've been up to.

You are silly, Yuhua
Yuhua Energy (2728) proposes a 2 for 1 bonus issue and a 4.5-fold board lot increase that it wrongly claims will reduce the market value per board lot and thereby enhance trading liquidity. In fact it does the opposite. (17-Sep-2015)

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)

Ex-Convoy and GET brokers jailed for insurance commission fraud
ICAC, 16-Sep-2015
Mr Fan was also a Responsible Officer of Convoy Asset Management Ltd until 5-Nov-2012.

Kwan Kwok Ki v Tang Shing Bor
HK Court of First Instance, 14-Sep-2015
Mr Kwan claims an oral agreement to share the profits on a building at 297 Jaffe Road, the King's Hotel. Defendant Tang Shing Bor recently took control of ETS Group (8031).

Alex So Yin Wai fined HK$20k by HKICPA
HKICPA, 8-Sep-2015
For turning a blind eye to a HK$3.7m bounced check deposited on the year-end date of Crowning Engineering Ltd, an "Approved Contractor" under the HK Public Works Department. This helped dress up its working capital when applying for renewal. Mr So is an INED of Green Energy Group (0979). So far (16-Sep), that company has failed to announce the sanction as required by Listing Rule 13.51(2)(h), or why he should continue to chair its audit committee. His fee there last year was HK$120k, or 6 times the pathetic penalty meted out by the HKICPA.

Police Sergeant gets 14 months for HK$130k bribery and fraud
ICAC, 7-Sep-2015

3 ex-United Asia Financed staff in court for alleged bribery over referral of loan applicants and fraud
ICAC, 4-Sep-2015
The basic allegation is that a senior supervisor was secretly collecting a cut of the commissions from junior telesales staff. In one case, the alleged kickback was 2% of the loan amount, so you can imagine that the telesales staff were getting more than that in commission.

GLD Controller sentenced for HK$4.2m housing loan & allowances fraud
ICAC, 4-Sep-2015
This case is another example of muddled thinking on civil service remuneration. Civil servants, like anyone else, should be paid what their services are worth, and not an amount based on whether or not they are renting a home or have a mortgage to pay. Mr Leung's "crime" was to claim what someone in his position would have been paid if he had actually rented the flat for the period he claimed.

Sami Said A Alangari v Hanson Cheah
HK Court of First Instance, 4-Sep-2015

Nanyang (0212) appoints Zachary Kwan Wing Kwong as INED
Company announcement, 2-Sep-2015
Zachary Kwan Wing Kwong worked for Shanghai Commercial Bank for 37 years until retirement as a senior manager in 2013. Both the bank and Nanyang are controlled by the Yung family, which has 3 generations on the Nanyang board.

HKICPA fines Mr Lee Poh Yee HK$10k
HKICPA, 2-Sep-2015
In March 2014 the senior vice-president of Resorts World Sentosa was also fined S$20k in Singapore for the offence.

And much more besides...
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