Sunday 22nd October 2017

Dear Reader,

We're back! Webb-site has moved to a new, higher-capacity server, which we hope will serve you well.

Questions on Teamway (1239) and a bit of soccer
An HKEX decision last week led us to discover an inflated acquisition that looks like a cash extraction exercise, possibly to cover an earlier outlay of "earnest money". A sudden surge in profits of the acquired consultancy coincides with a Chinese takeover of troubled soccer team A.C. Milan, or Rossonori, which prints more red ink than black, and a deeply-subordinated loan to its Chairman. (22-Oct-2017)

Ex-security guard jailed for being in 1 Country, 2 Systems simultaneously
ICAC, 19-Oct-2017
Mr Yim Yiu Chuen signed in to work in HK and then went off to the mainland on 60 occasions during his working hours. His successor Li Pak Ho is accused of doing a similar thing. They were supposed to be checking for unauthorised canines at public housing estates. Perhaps they went to see a man about a dog.

Ex-Funing Property Management Ltd manager charged over festive flowers
ICAC, 18-Oct-2017
The old kumquat racket. Have you ever wondered how those plants end up in your apartment lobby? Mr Wong Kin Wah allegedly faked documents to supply Chinese New Year flowers to Wylie Court, Ho Man Tin for HK$25k.

Fung Chuen v Sandmartin (0482)
HK Court of First Instance, 17-Oct-2017
The court grants inspection of documents relating to dubious deals by Sandmartin. Deputy Judge Alex Lee writes "I am satisfied that... a reasonable case for investigating whether the loans advanced to the two Nepalese Debtors were a pretext by the Company’s directors for siphoning off the Company’s funds to the detriment of its various stakeholders including the minority shareholders".

'Enigma Network' crash spurs HK's largest financial raidThe Enigma Network
Bloomberg, 13-Oct-2017

HKICPA fines Mr Lee Ping Kai HK$30k
HKICPA, 9-Oct-2017
Filling the blanks: Mr Lee is/was a director of Pan-China (H.K.) CPA Ltd, which did the audit of GT Group (0263) for 2014 and the interim review for 2015. HKICPA fails to name either of these. Webb-site filed a complaint against the auditor with the Financial Reporting Council in Dec-2015.

And much more besides...
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David M. Webb