ShareJunction - Member Posts

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Hope you are don' t mislead the ppl here especially those without financial knowledge.
You mentioned BW name 2 times in the first para.

bayduck ( Date: 16-May-2019 16:14) Posted:
Your understanding is correct. I did entertain that possibility before, and made the argument that ....
maybe BW is booking $2 profits even though it' s actually only $1, then proceed to pay 80 cents in dividends.
In that case, BW can be both inflating profits and paying dividends at the same time.

Sin_Cos_Tan ( Date: 16-May-2019 16:52) Posted:

For Full yr 2018, Earning per share (EPS) was abt 5 cents.

Sin_Cos_Tan ( Date: 16-May-2019 16:28) Posted:

IMPOSIBLE, how to pay 80c dividend when your NAV is only 30c ??

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1. 1st Qtr 2019 EPS : 1.88 cents
2. PWC now have to report solely to SGX RegCo and not as arranged previously (report to BWL audit committee & SGX)
3. Expand the scope of PWC review FY2015 - FY2018 and not FY2018 only.

michaeltan ( Date: 16-May-2019 16:46) Posted:

Perhaps BW can sell their product here for those who are thick skin required an effective treatment to make your skin soft, smooth and glowing as to look ever younger and handsome.

To my understanding , the Primary Import Agent has ceased in operation and was replaced with BWL Franchise Model. Your concern is already raised by Bonitas.

Bonitas claims that the Company&rsquo s management secretly controlled and created the Primary Import Agent in order to fabricate sales and fraudulently overstate the Group&rsquo s profits in FY2017. However, since the Group&rsquo s transition to the Franchise Model in June 2018 and the replacement of the Primary Import Agent by BWL China, the Group&rsquo s sales and profits have increased substantially, as shown in the Company&rsquo s announcement of the Group&rsquo s unaudited financial statements for 3Q201819 and 4Q201820. The fact that the Company&rsquo s sales and profits have increased substantially since the replacement of the Primary Import Agent disproves Bonitas&rsquo claim that the Primary Import Agent was created to fabricate sales and inflate profits. Furthermore, based on PwC&rsquo s interim update as of 12 April 2019, the Board and the Audit Committee understand that PwC has not identified any matters that may have a material impact on the Group&rsquo s unaudited financial statements for FY201821.

Sin_Cos_Tan ( Date: 16-May-2019 16:28) Posted:

IMPOSIBLE, how to pay 80c dividend when your NAV is only 30c ??

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For Full yr 2018, Earning per share (EPS) was abt 5 cents.

Sin_Cos_Tan ( Date: 16-May-2019 16:28) Posted:

IMPOSIBLE, how to pay 80c dividend when your NAV is only 30c ??

bayduck ( Date: 16-May-2019 16:14) Posted:

Your understanding is correct. I did entertain that possibility before, and made the argument that maybe BW is booking $2 profits even though it' s actually only $1, then proceed to pay 80 cents in dividends. In that case, BW can be both inflating profits and paying dividends at the same time.

But if it' s that' s the case, then I should see a widening divergence between aggregate accounting earnings and cash earnings (because if actual sales is 70M instead of reported 100M, BW will only get 70M in cash, no matter what the accounting numbers say), which I am not seeing if you look across the last 5 years.

Not saying that just because there' s no divergence it means earnings are not inflated (since the cash number itself could be faked, just harder to do so), but it reduces the probability a little

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IMPOSIBLE, how to pay 80c dividend when your NAV is only 30c ??

bayduck ( Date: 16-May-2019 16:14) Posted:

Your understanding is correct. I did entertain that possibility before, and made the argument that maybe BW is booking $2 profits even though it' s actually only $1, then proceed to pay 80 cents in dividends. In that case, BW can be both inflating profits and paying dividends at the same time.

But if it' s that' s the case, then I should see a widening divergence between aggregate accounting earnings and cash earnings (because if actual sales is 70M instead of reported 100M, BW will only get 70M in cash, no matter what the accounting numbers say), which I am not seeing if you look across the last 5 years.

Not saying that just because there' s no divergence it means earnings are not inflated (since the cash number itself could be faked, just harder to do so), but it reduces the probability a little.

curious_moo ( Date: 16-May-2019 16:01) Posted:

have anyone consider the the below case which i thought BR is trying to highlight, or is my understanding totally wrong.
e.g. BWL sold 100mil to Changsha, and Changsha managed to re-distribute out 70mil thru MLM or direct sales or whatever.
if Changsha is really controlled by BWL but posed as an independent wing (via " investments" from BIL), the book on BWL will mention 100mil as revenue (inflated), but in actual fact their revenue is the actual sales from Changsha best which is only 70mil. the rest are just inventory reported on Changsha best books.

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suka ee kon....lol

michaeltan ( Date: 16-May-2019 12:32) Posted:

What is the intention of Changsa low responsibility?
Perhaps for tax avoidance?
Difficulties and mitigation of risks doing business with China counterparts?
Important is that the transaction is genuide and in accordance with company appointment agreement.

bayduck ( Date: 16-May-2019 11:59) Posted:

1) Legal rep' s status in China is basically emperor of the company, responsible for all things. So many cases of S-Chips gone case even though CEO is Singaporean, because the legal rep of the operating sub is PRC and basically just took control

2) BIL also has 100% claims to profits of Changsha, being the sole shareholder. Yes, many people invest more than $100,000 in a stock, but don' t get involved, but that' s such a bad analogy. The $100,000 is only share capital, and if Changsha is really importing hundreds of millions from BW, the profits must also be huge. BIL is entitled to 100% of the profits, so the monetary value is definitely beyond $100,000. A better analogy would be that you invest $100,000 as sole shareholder to start a business, but the business then grew to make revenues in hundreds of millions, making many millions in profits. You, as the sole shareholder, is entitled to ALL the profits. It' s a hard sell to convince me you do not exercise control or influence, or that you completely heck care the business. If you had been a minority shareholder, then it' s more believable

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Which price you are looking for? $0.47 or NAV of $0.31?
Brokerage CLSA is keeping its " sell" call on Best World.
Analyst Low Horng Han slashed his 12-month target price for the stock from S$1.75 to S$0.47 on Monday, based on a lower multiple of five times forward earnings, instead of 12 times.
http://www.businesstimes.com.sg/companies-markets/best-worlds-independent-reviewer-to-report-only-to-sgx-regco-from-now

destinykraze ( Date: 15-May-2019 21:41) Posted:

Realistically speaking shortist would be looking $1.1 -$1.2 to cover back in off-market deals.
The rest would probably hope for more bad news so they could cover back when it' s lower.
There is a low chance that BW becomes a clean slate again, but even then, it would take a long time.

slidoffads ( Date: 15-May-2019 19:30) Posted:

I am looking for shortist to close their position rather than fresh buyer

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500 thousands shares...

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海比河大 , 海纳百川 .
【滄海一聲笑】
http://www.youtube.com/watch?v=j0K27MndYBk

Superkilat ( Date: 14-May-2019 22:13) Posted:

If i am nonitas, i will find whatever means to detroy the accounting documentation such as fire in warehouses. Once this is done, BWL go to china yellow river also cannot clear its guilt. Sin_Cos_Tan anything to add?

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Stories you might have missed
http://www.businesstimes.com.sg/government-economy/daily-debrief-what-happened-today-896
Best World confirms CEO' s brother-in-law owns main customer in China, discloses other connections
BUT the company' s board did not give a clear answer to queries by the Singapore Exchange (SGX) about whether import agent, Changsha Best Commodity Trading Co, is considered an independent party.

Best Worl' s independent reviewer to report only to SGX RegCo from now
http://www.businesstimes.com.sg/companies-markets/best-worlds-independent-reviewer-to-report-only-to-sgx-regco-from-now

Referring to the SGX rule book, the company said that Changsha Best was not an interested person, as far as the rules that govern interested person transactions (IPTs) went.

Corporate governance advocate Mak Yuen Teen told The Business Times that he is not satisfied by Best World' s logic:
" Unfortunately, our IPT rules are porous (and) Best World could have used a very technical interpretation of the rules as an excuse."

The SGX rulebook states that a CEO' s associates would include her immediate family members in--aws are not included.

Prof Mak said: " We have already seen companies like Datapulse Technology drive a truck through these rules.
The SGX needs to review the IPT rules and drive home the message that it will enforce the spirit of the rules, not just the letter.
Saying that companies must follow the spirit, which the rules say, but not enforcing accordingly, would be pointless."

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Hmmm.....you should have paper loss of al least $500k.

Superkilat ( Date: 14-May-2019 18:14) Posted:

I have 500 thousands shares. Who want to buy from me? Selling price is $2.50.

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承认总裁与长沙公司唯一股东亲属关系全美世界在华商务新交所严重关注
发布 /2019年 5月 14日 3:30 AM
http://www.zaobao.com.sg/zfinance/news/story20190514-956352

Sin_Cos_Tan ( Date: 14-May-2019 09:01) Posted:

新交所监管公司向全美世界发出遵循通知
更新 /2019年 5月 13日 6:23 PM
（早报讯）新加坡交易所监管公司向全美世界（ Best World）发出遵循通知（ Notice of Compliance），表示严重关注后者在中国的销售和经商情况。
监管公司在通知当中说：全美世界总裁与长沙百世特威之间关系的揭露，使到集团 2015至 2018财年在出口模式下取得的中国销售的准确性、以及集团是否是在正常商业条件下经商，引发严重关注。
监管公司因此要求，全美的独立评估师普华永道（ PwC）直接向监管公司汇报独立评估的范畴和所有结果，
并且扩大检讨的范围，评估集团在出口模式下于 2015至 2018财年的中国销售准确性，以及这些是否是在正常商业条件下进行。
此外，监管公司要求全美针对集团在特许经营模式下销售和分销业务的合法性，获取独立法律意见，
并要长沙百世特威和其他进口代理允许独立评估师获取财务信息、会计和企业记录，并提供协助，例如联络顾客、仓库和运送服务业者。
全美也要与监管公司及独立评估师全面合作，包括提供信息、面谈、查访等。
监管公司说：没能满足上述条件将被视为违反上市条规。

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新交所监管公司向全美世界发出遵循通知
更新 /2019年 5月 13日 6:23 PM
（早报讯）新加坡交易所监管公司向全美世界（ Best World）发出遵循通知（ Notice of Compliance），表示严重关注后者在中国的销售和经商情况。
监管公司在通知当中说：全美世界总裁与长沙百世特威之间关系的揭露，使到集团 2015至 2018财年在出口模式下取得的中国销售的准确性、以及集团是否是在正常商业条件下经商，引发严重关注。
监管公司因此要求，全美的独立评估师普华永道（ PwC）直接向监管公司汇报独立评估的范畴和所有结果，
并且扩大检讨的范围，评估集团在出口模式下于 2015至 2018财年的中国销售准确性，以及这些是否是在正常商业条件下进行。
此外，监管公司要求全美针对集团在特许经营模式下销售和分销业务的合法性，获取独立法律意见，
并要长沙百世特威和其他进口代理允许独立评估师获取财务信息、会计和企业记录，并提供协助，例如联络顾客、仓库和运送服务业者。
全美也要与监管公司及独立评估师全面合作，包括提供信息、面谈、查访等。
监管公司说：没能满足上述条件将被视为违反上市条规。

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Valiant Varriors, in its short sell research blog, has published the first instalment of a two-part report that
alleges Best World continues to engage in multi-level marketing (MLM) in China, which is illegal.
http://valiantvarriors.wixsite.com/home/newletters/best-world-the-worst-investment

SmallSmall ( Date: 13-May-2019 20:31) Posted:

If a foreign bride intentionally married a local guy just to get residency status in Singapore, is it legal?
There are loop holes in which people and business try to circumvent the rules before the law catches up with them.
Does it make them legal in the first place just because the law has not caught up with them initially?

Superkilat ( Date: 13-May-2019 20:19) Posted:

Figures i can understand but not on legality.

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SGX orders Best World' s major customer to hand over documents
http://www.businesstimes.com.sg/companies-markets/sgx-orders-best-worlds-major-customer-to-hand-over-documents
这次来真的 .....

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one of the jia jia luck issues..
2 (iii) the legality of the group' s business model in China

SGX RegCo orders independent review of Best World by PwC to be expanded
According to the notice signed by June Sim, SGX RegCo' s head of listing compliance,
the findings are to be only reported to SGX RegCo, and not to the company' s audit committee as previously agreed.
http://www.theedgesingapore.com/sgx-regco-orders-independent-review-best-world-pwc-be-expanded

Sin_Cos_Tan ( Date: 13-May-2019 19:18) Posted:

A good move!
REPL::Regulatory Actions By SGX::Notice of Compliance
2019-05-13 17:43:20
http://infopub.sgx.com/FileOpen/Best%20World%20International%20-%20Notice%20of%20compliance.ashx?App=Announcement& FileID=559028
PWC should perusal all the Intercompany Transactions (and not only based on the confirmation letter as done by BW' s auditors EY, I guess)
and the Primary Import Agent financial reports/ tax returns sbumitted to PRC authorities.
********
BWL replied...The Company will also procure the Primary Import Agent to grant PwC access to all necessary records
for the period from 1 January 2017 to 31 May 2018 (now is 2015 -2018 as requested by SGX RegCo) for the purpose of PwC' s review of the Group' s sales to the Primary Import Agent during that period.

george78 ( Date: 13-May-2019 18:11) Posted:

1) SGX wants PwC to report solely to SGX Regco

2) expand review scope to FY2015 to FY2018 to see if the Export business was done on normal commercial terms

3) Obtain independent legal opinion on the Franchise Model

4) To procure all records from the import agent

https://links.sgx.com/FileOpen/Best%20World%20International%20-%20Notice%20of%20compliance_Final.ashx?App=Announcement& FileID=559059

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http://sginvestors.io/sgx/stock/cgn-best-world/company-announcement

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A good move!
REPL::Regulatory Actions By SGX::Notice of Compliance
2019-05-13 17:43:20
http://infopub.sgx.com/FileOpen/Best%20World%20International%20-%20Notice%20of%20compliance.ashx?App=Announcement& FileID=559028
PWC should perusal all the Intercompany Transactions (and not only based on the confirmation letter as done by BW' s auditors EY, I guess)
and the Primary Import Agent financial reports/ tax returns sbumitted to PRC authorities.
********
BWL replied...The Company will also procure the Primary Import Agent to grant PwC access to all necessary records
for the period from 1 January 2017 to 31 May 2018 (now is 2015 -2018 as requested by SGX RegCo) for the purpose of PwC' s review of the Group' s sales to the Primary Import Agent during that period.

george78 ( Date: 13-May-2019 18:11) Posted:

1) SGX wants PwC to report solely to SGX Regco

2) expand review scope to FY2015 to FY2018 to see if the Export business was done on normal commercial terms

3) Obtain independent legal opinion on the Franchise Model

4) To procure all records from the import agent

https://links.sgx.com/FileOpen/Best%20World%20International%20-%20Notice%20of%20compliance_Final.ashx?App=Announcement& FileID=559059

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If Dora Hoan was not involved in the Company' s decision to partner with the Primary Import Agent,
why so coincidence that the sole shareholder and legal representative of the Primary Import Agent, is her BIL?

Qanghoo ( Date: 13-May-2019 10:25) Posted:

Now PWC maybe more tu lan. Without the short sellers' help, they might just have given an unblemmished review. So, what will happen to the PWC review now? Also, now BWL sues whom? Will any litigation stand up to any scrutiny on the coy itself after this enforced disclosure?

Sin_Cos_Tan ( Date: 13-May-2019 10:13) Posted:

BWL response to queries from SGX RegCo
(d) Dora Hoan was not involved in the Company' s decision to partner with the Primary Import Agent,
or, save as disclosed in this announcement, in the Group' s dealings with the Primary Import Agent
Dora Hoan
Founder, Co-Chairman, Group CEO & Managing Director, Best World International Ltd
Why paid the Director ten of million in cash and allow her do nothing?!

Directors' Duties in Singapore
http://singaporelegaladvice.com/law-articles/directors-duties-in-singapore/
By law, the management of a company is vested in the board of directors (which the CEO is usually part of), under section 157A of the Companies Act (CA).
Although day-to-day management may be delegated to executives, there are still business decisions that directors have to make in accordance with their duties under the law.
Otherwise, they may face civil liability in a lawsuit, criminal penalties and/or be subject to removal from the company.

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Don' t hope that privatise and delist the Co can run away from everything.

zillion ( Date: 13-May-2019 10:14) Posted:

spot on. to stop further interogation, it has to be privatise and delist soonest. Once they have made up their mind to privatise, I am sure SGX will lift up suspension. Which is better-questions after questions until all worms come out of the can or just simply delist and start all over again in another part of China.

Shifu8888 ( Date: 13-May-2019 10:10) Posted:

Both short sellers are readying the next attach reports. They will release them when the trading is lifted for sure. So the suspension is good to clear all the worms.

Now, what needs to be done next.

1. Both ladies have to use their own money to do more personal buy backs to show confidence.

2. Prepare to answer:
A. Why Usd100,000 company can finance the purchase of millions from BW?
B. The sales From the import agent will be scrutinised more thoroughly than before
C. Any disclosure of BIL to the Board? If no is the whole board sleeping? If yes, Adrian Lee, being a renowned corporate lawyer should advise them to disclosure to the public on grounds of best practice governance though not required by Chap 9 of listing rules.

More more more queries to come. At least 2 months to lift suspension. So, ladies, take them private and do all you like with your in laws, mothers fathers and grandparents. No one will question u.