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SBB - Sunbridge Group

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skc said:
But I am sure the supporters will think he's just downramping to secure some cheap share himself.
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LOL! Thats gold! I enjoyed the excerpt from the article, i dont subscribe to AFR so I couldnt see the whole article but at least i gor the flavour from McLovin's post.
 
galumay said:
LOL! Thats gold! I enjoyed the excerpt from the article, i dont subscribe to AFR so I couldnt see the whole article but at least i gor the flavour from McLovin's post.
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On HC there's a thread called Sunbridge Shareholders. Post #259 on 6 Feb 2015 at 8:36am might give you a more elongated version of the article. ;)
 
Ves said:
On HC there's a thread called Sunbridge Shareholders. Post #259 on 6 Feb 2015 at 8:36am might give you a more elongated version of the article. ;)
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oh thanks for that....NOT! Just wasted an hour of my life wading through that thread, its like days of our lives on there!
 
Oh, hello there...

Broker BBY has started marketing a $15 million initial public offering for Chinese sportswear company XPD Soccer Gear Group Limited.

XPD is seeking to raise up to $15 million at 20 ¢ a share, which would see it list on the Australian Securities Exchange with a $75 million to $85 million market capitalisation on May 12.

Chairman Shui-Chiao Chang told potential investors that XPD was the fastest growing sportswear business operating in China. The company designs, develops, manufactures, markets and distributes products under the XPD brand, with a focus on soccer gear.

XPD is raising capital to expand its distribution networks in China, increase production capacity and boost its brand image and awareness.

The company has a registered office in Melbourne but its principal place of business is in China’s Fujian Province.

Its Australian non-executive directors include Andrew Smith, who was formerly managing director at broker Intersuisse, BBY’s Ben Meikle and former St Kilda Football Club president and Australian Olympic Committee director Andrew Plympton.

BBY is lead manager.

The broker was due to open the offer on March 16 and close it on May 1, according to a prospectus lodged with the Australian Securities and Investments Commission.
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http://www.afr.com/p/opinion/xpd_soccer_gear_group_in_ipo_66UxyWqG1b7MRbls13sgkN

Now, who was Andrew Plympton also a director of?

I also note they're from the same province in China as SBB.

ETA: Website is here...

http://chinaxpd.com/en/content/?233.html
 
McLovin said:
Oh, hello there...



http://www.afr.com/p/opinion/xpd_soccer_gear_group_in_ipo_66UxyWqG1b7MRbls13sgkN

Now, who was Andrew Plympton also a director of? I can't wait to read this prospectus.

I also note they're from the same province in China as SBB.
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Let me guess, they have a heap of cash, and they will (nope) might (nope) probably won't (nope) will not (yep) pay a big dividend to all their Aussie friends? :D

Do they also have a heap of "franchised" stores that they need to buy back (most likely from undisclosed related parties at prices way above market value so they can stack their balance sheet with intangible assets)?

Hmmm, just don't mention seed investors.... and we'll be all lollipops and rainbows. :)
 
When I look at SBB, I thought its a dot china listing just like the dot com day
China get plenty of coverage due to its population and the potential market

The key word here is potential :D

so any business with the magic Chinese Market words in the prospectus would get plenty of punters in :)

They wont be the last of dot china as the bull raging ahead
 
Huskar said:
Awesome sleuthing McLovin! Perhaps Hempton may be your man to let know? He has made a career out of shorting China frauds after all..
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Thanks, hesk. I suspect it's too small. I really wish the business media would pay a bit of attention to this sort of stuff, and as skc says, the ASX should really look a bit closer at these floats.
 
ROE said:
This deal is so good, the number is very sweat and the lead manager DON'T want to underwrite
that said it all :D

http://www.afr.com/business/manufac...-taking-a-kick-at-asx-listing-20150315-142abv
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The financials look more believable than SBB's... XPD doesn't have a huge amount of cash sitting on the balance sheet for a start.

But here's the kicker that I found amazing. P. 68 of the prospectus.

Note 20 – Subsequent Events
Subsequent to 30 June 2014, an additional investment of RMB29.8 million to Henan Yuanlong has been made and the investment has been recorded as a long-term investment by the Company. Total investment is approximately AUD$14.9 million as at 31 December 2014.
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RMB29.8m = ~A$6.2m. Cash at the end of half year was A$3.95m. So the company decdied, before IPO, to sink all it's cash and borrow a bit more, and "invest" into Henan Yuanlong... which Google suggests is an aluminum factory of some sort.

http://henanyl.com/about/aboutus.html

I hope those interested in investing in the Chinese sportswear industry also happened to be looking for investment in the aluminum industry at the same time.
 
skc said:
The financials look more believable than SBB's... XPD doesn't have a huge amount of cash sitting on the balance sheet for a start.
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They've learnt the lesson of having huge cash balances.;)

Unless they've reinvented the shoe, how do you get 5 fold increase in sales in 3 years with those ridiculously fat margins? Oh wait, of course...

The increase in overall sales from 2011 to 2013 is the result of continuous expansion of distribution network, effective distribution
management, increased market recognition of the XPD brand as a result of XPD’s brand promotion and marketing activities and the
broadening of the XPD brand footwear and apparel product offerings. Sales from January to June 2014 (based on annualised sales
compared to 2013) have remained relatively consistent with 2013 sales.
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Just amazing they can do that and have a employee expense of $60k for the HY to 30/6, and a marketing spend of $336k for the same period.

Of course it begs the usual question: Why would you ever think of selling off a portion of this money tree!?

I hope Shan Shan has her cheque book ready.:D
 
Had a look at XPD recently, great story and all...

They sure know how to bait it right!

I think the key here is Mr Jiang Ting who has served with:

XXL AU
SBB AU
PEZ AU
CHI NSX
and now XPB AU

All of them had some very nice looking IPOs with many similarities
- Tiny raising, founders holding 70%+ with escrow
- Very profitable businesses requiring funding to expand to meet demand and growth
- With the exception of XXL, an incredibly wide raising range (eg. 5-15m) in an effort to take all comers with open arms
- Got oodles of cash, the aus raising is for 'prestige' and 'trustworthiness' since ASX is 'well regulated'
- Outrageously handsome fees to advisers
- Grant Thornton auditing with a blindfold on (http://rogermontgomery.com/no-more-chinese-junk/)

XXL announcements/share price makes for a fine drama imo
 
skyQuake said:
Had a look at XPD recently, great story and all...

They sure know how to bait it right!

I think the key here is Mr Jiang Ting who has served with:

XXL AU
SBB AU
PEZ AU
CHI NSX
and now XPB AU

All of them had some very nice looking IPOs with many similarities
- Tiny raising, founders holding 70%+ with escrow
- Very profitable businesses requiring funding to expand to meet demand and growth
- With the exception of XXL, an incredibly wide raising range (eg. 5-15m) in an effort to take all comers with open arms
- Got oodles of cash, the aus raising is for 'prestige' and 'trustworthiness' since ASX is 'well regulated'
- Outrageously handsome fees to advisers
- Grant Thornton auditing with a blindfold on (http://rogermontgomery.com/no-more-chinese-junk/)

XXL announcements/share price makes for a fine drama imo
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Unfortunately for SBB holders, the company isn't listed on the Shanghai exchange instead... they might have been brought up by the crazy rising tide there otherwise.

I think the most likely longer term (3-5 years) outcome for SBB is that, all the numbers stay OK, no one really proves them to be dodgy or solid one way or and other, and they eventually generate so little interest and volume that they will trade like several other Chinese stocks (like CIK, CMC, RIS, TYO etc) on the market.

No volume, super wide spread, not a good place to be.

P.S. The latest announcements by FTH and NCO are also worrying.
 
Interesting article on AFR about Chinese companies looking to list in ASX.

http://www.afr.com/markets/equity-m...-for-asx-listings-at-any-cost-20160224-gn32nh

The "prestige" of an ASX listing that allows Chinese business owners to win key contracts is the official reason why they are paying exorbitant brokerage costs and accepting valuations that don't reflect their cash balances to raise capital from Australian investors though a stock exchange listing.

Market watchers and regulators are more sceptical. Several Chinese floats in Canada, the US and Singapore have turned out badly for investors. Auditors tasked with verifying financial information have limited access to China. Meanwhile, the hundreds of billions of dollars flowing out of China have led many to believe foreign listings are a way of getting considerable amounts of money out of the mainland.

This is just part of the mystery of the ghost-like companies that linger on the local bourse, trading at prices that do not appear to reflect the million of dollars of cash in their bank accounts. Like much about China, the truth is hard to establish while the reality is impossible to ignore.
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This group of 41 companies based in mainland China have cash to market capitalisations in the range of 67 per cent, much higher than the market average which is 12 per cent for the All Ordinaries Index. Trading volumes in this group are also much lower than average with about two-thirds recording barely any trading volume in the last three months.

The average return for listings of Chinese companies since 2012 has been negative 25 per cent with just under half declining by more than 50 per cent.
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