Tuesday, July 28, 2009

China Printing & Dyeing Holding (M67)

Maintaining the focus on textile sector, I start by looking for the weakest company, China Printing & Dyeing to learn about the risks and problems it faced. It was hard to find information from SGX and other sites what happened to it. From Business Time, it seems to have undergo judicial management.

Fibrechem also seems to have issues in their balance sheet too. Therefore, the biggest issues seems to be corporate goverance in this sector, or rather S-chips. NUS had done a Goverance Transparency Index (GTI) that ranks company with a set of criteria. However, the list was in image file, making the search of company very hard. There is the Singapore Corporate Governance Awards which does provides a searchable list though. Perhaps, I should email them requesting a text copy of their results if possible.

Review: I will looks into corporate govt first before financial statements. It seems to be a big issue since financial statements can be cooked up.

Updates on 30th Jul 2009, added link to SGX for getting the monthly updates.
Also added the list of upcoming events at the comment section


Restructuring and no payment
News of Judicial Management
Auction by govt
SGX (look for Last 3 Month, China Printg & Dyeing)

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Anonymous said...

what will happen to china printing and dyeing?

a lot of months have past and no chances have been made.

what do you think?


Hoon Thien Rong said...

I further research and the latest news was at Jun 22, 2009 and with some more details about the happening. (see the updated source containing the links)

In short, the parent company is already bankrupt and assets auctioned off. What remains is just the proper accounting to the creditor and the payment to the judicial manager, who has yet to receive payment yet.

Hopefully, this will serve as a good example of the importance of corporate governance. It will be good to read up the previous reports to see if we can learn how to spot oddity and problems.

Anonymous said...

I have invested a little money in this company and havent heard of any news...

What will happen to the company? To the shareholders?

Isnt their a report opf the auction?


Hoon Thien Rong said...

When was the last time you heard news from them? Did you receive the monthly updates that is available from SGX (look for Last 3 Month, China Printg & Dyeing)?

If you read the monthly report already, the company will either
1) restructing and continue operation
2) liquidated

If 1) you will have share on the company. The company will also either stay listed or be delisted.

If 2) as a shareholder, you only have rights to the liquidated amount after the creditors. Therefore, it can be zero if there isn't any value left after paying the creditors.

If you have not read the monthly report, this is what I sorted out.

On the April Update, the Judicial Managers mentions a potential investor but it isn't conclusive and have no mention since then.

On 30 July 2009 , the company will have a hearing for seeking claim from Zhejiang Jianglong Textile Printing & Dyeing(ZJJL) RMB 11 million for dividend.

By 30 September 2009, the Judicial Managers should send their proposal to creditors and related companies.

By 13 October 2009, China Printing & Dyeing need to submit the resumption proposal to SGX to continue trading. The resumption proposal will contains

By 19 November 2009, Judicial Management should be lifted.

Also, if the company wish to resume trading, there will be the announcement of the delayed Final Year Report.

Anonymous said...

Excellent update, thank you

pd: maybe i clicked on some google ads as a thank you lol

I also have a web page, quickstockanalysis.com

check it out!

good luck

Hoon Thien Rong said...

You are welcomed, and I returned the favor :) But surprisingly, you invested this stock but your blog is mostly on stock market of other countries.

chinaprinting said...

I also think that China's printing industry is an area for investment. Profits will appear immediately, because in this country, people are still reading and there are many bookstores around China.

Hoon Thien Rong said...

China Print & Dyeing Holding(1 company) company is still under judicial management with little update.

People interested in printing industry can look at China Print Power(B3C), which will be printing the Bible for US market soon.