*unsubstantiated allegations removed*
Anglecare, here is the information I have been able to find on Ding via Google from publicly available sources. To my amatuer eye, it appears that Ding has a pretty good track record and reputation. Would you care to share where you are getting your information from, who is the investor selling down and what reports (newspaper etc) there are that suggest Ding as being a shady operator?
Obviously, Ding (through Best Decade) can decide not to pay the cash. So there is some risk there. But all the evidence seems to infer that he is serious on growing his steel empire, especially the convertible notes issued last month by Delong Holdings that are worth around AUD$230 million.
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http://knows.jongo.com/res/article/3786
Mr. Liguo Ding is the Chairman of Board of China Delong Holdings Co. Ltd. (Listed in Singapore SGX), the first Chinese private steel-making company listed in a oversea stock and exchange market. From 1998 to 2003, Mr. Ding was the Chairman of Tangshan Liguo and from 1992 to 1998, he was the Chairman of Tangshan Changcheng Rolled Steel Factory.
In 2005, Mr. Ding was ranked 46th in the Forbes 2005 List of Richest Chinese, and honored "China Top Ten Outstanding Youth".
Mr. Ding also holds various positions of commissioner of Chinese General Chamber of Commerce and Industry, commissioner of All-China Youth Union, and trustee of China Association of Young Entrepreneurs, and etc.
Mr Ding holds a diploma in Machinery Manufacture from the Hebei Polytechnic University in the PRC, and education experience in the MBA program of Tsinghua University from 2002 to 2003, and currently holds a joint professorship appointment in the enterprise management program of Hebei University of Economics and Business.
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http://forum.channelnewsasia.com/viewtopic.php?p=976439&sid=b41485747713039b080da106026291ad
CHINESE companies in general have to overcome the negative perception investors have of them. It is worse if they get on board the Singapore Exchange via the backdoor. Which is why the chairman of Delong Holdings, the China-based manufacturer of hot-rolled coils, felt that the market is yet to accord his company a fair value despite it delivering on its promises in the last two years.
Delong Holdings entered the Singapore market via the reverse takeover of Teamsphere in 2005. For financial year 2005, it chalked up net profit of $121.5 million on turnover of $861 million. And last year, it managed a net profit of $131.2 million on a turnover of $945.3 million.
From its financial statements, the numbers look pretty good.
Cash flow generated from its operations amounted to $176 million. Net profit margin has been steady at 14 per cent in the last two years. Meanwhile, return on equity was 41 per cent and return on assets 17 per cent. The only concern is its relatively high short-term borrowings relative to its liquid assets.
Its chairman Ding Liguo, a young man at just 37 years, has grand plans for the group. And he is realistic enough in his time frame: 'We intend to be the top 500 global companies in 30 years.'
The immediate step towards that goal is to grow domestically.
Delong put in place a new production line at the end of last year, and that will add 800,000 tonnes to its production capacity this year. Its annual capacity will therefore increase to 2.4 million tonnes, and to three million tonnes next year.
The expanded capacity is expected to contribute to its bottom line as demand from its customers - manufacturers of pipes and machinery and infrastructure builders - continues to be strong, and Delong is expecting its net profit margin to remain stable.
In addition to organic growth, Delong will also buy up other steel mills as the industry is going through a mandatory consolidation. China's national steel industry is to have 10
mills producing 50 per cent of the national total by 2010, with that number rising to 70 per cent of the output by 2020. Currently, the industry is still quite fragmented with over 800 players.
In recent years, private enterprises encouraged to take part in the steel sector by the government have grown into an important player, accounting for more than 36 per cent of the national output, according to a China Daily report.
And Delong is one of those private enterprises that have proven their mettle. According to China Iron and Steel Association, Delong is the second lowest-cost steel producer in China, after Taiyuan Steel, with a yield of 98.5 per cent. And it doesn't
stint on investing in technology in order to climb up the value chain.
It has a company-wide incentive scheme tied to profitability and its worker welfare standards are above those required by law. On top of that, it has embarked on three green initiatives, including establishing a coal gas emission recycling facility and an operation to recover iron and steel sludge for reuse as raw materials.
Based on its performance record, it is logical to think Delong will be able to add value to the mills it acquires. Mr Ding estimates Delong will require four billion yuan (S$785.2
million) - to be funded by internal resources, bank loans and new capital - for its acquisitions.
According to Mr Ding, since uber-investor Warren Buffett announced that he has a stake in Korea's steel maker Posco, a lot of people are looking at steel companies. He's had an offer to take Delong private at 50 per cent higher than its recently traded price. He was unwilling to sell, because 'I don't know how the market value shares, but I know what I can make next year and the year after.'
At its last traded price, the market is valuing Delong at nine times its earnings last year and 6.7 times its expected earnings this year.
In a fast liberalising market like China, an astute entrepreneur can really make serious money for himself or herself and those who bet on them. Yan Cheung, chairwoman of Nine Dragons Paper, and Zhong Sheng Jian of Yanlord are two good examples.
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http://www.steelguru.com/selectednews/index/2006/005/010/archives.html
Delong targets 10 millions by expansion & acquisitions
Singapore based Delong Holdings Ltd said that it plans to be one of the top ten steel makers in China in the next five years, producing more than 10 million tonnes a year and to achieve that target, the firm will buy steel makers and iron ore mines in China, and is already in talks with several companies, both state owned and private. Mr Ding Liguo Delong's executive chairman said "To be among the top ten steel producers in China you have to have at least 10 million tonnes of production."
Mr Ding said the steel industry in China was suffering from overcapacity but that with stringent technological and environmental standards introduced by the government last year several smaller mills were likely to sell out to bigger players. He said a technical enhancement program launched by his firm would boost production to 2.4 million tonnes a year by the end of 2006, from 1.4 million tonnes in 2005."But to grow beyond that, acquisition is the only way" he said.