Sino Environment

Re: Sino Environment

Postby winston » Fri Jul 10, 2009 8:36 am

This stock has all the great story-line mah eg. "China", "Green Energy" and ""China 4t Stimulus Program" :P

Have you all wondered why these S-Chips chose to list in Spore and not HK, China or the US ?
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Re: Sino Environment

Postby Aspellian » Sun Jul 12, 2009 12:44 am

because spore investors more gullible! we are not talking about retail investors only. For each IPO of S-chips - there are also many local institutional funds that subscribe. Sometimes private placements are also done to local high networth individuals ... sigh... we are all so gullible, only looking at "audited" numbers and reading them like bibles. even when the cash is not there - no dividends given, we still buy their stories.

Typical sob stories of S-Chips can include :
- severe weather eg. winter, earthquake, flood etc . . whatever that happen in any part of China can affect their biz substantially!!
- global demand down
- golden weeks (Chinese and labour day)
- competition over-whelming
- consolidation of operation

Typical bull stories of S-Chips which everyone buys in!!
- we are CHINA! (see most S-Chips in spore has the word CHINA - reminds me of dot.com days when any company with .com will rise 10-folds but see where most .coms are now; similar to our S-chips now)
- cheap labour
- Stimulas package
- huge billion population
- expand into huge outskirts market (cos big HK-listed players are there in big cities, cannot fight. But when big cities are matured, big Hk -listed players will expand into outskirts - our S-chips will flounder/die. But they will spin it saying that they expanding to even more outskirts for "greater opportunities" or i remembered one company says it will expand into big cities and take on the big boys - desperate move!!)

PROMISE, PASSION, PEACE, POWER, PURPOSE, PLAN, PATIENCE, PERSEVERANCE, PROTECTION
DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE

"Its not whether you're right or wrong thats important, but how much money you make when you're right and how much you lose when you're wrong." - Warren Buffet
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Re: Sino Environment

Postby winston » Wed Oct 14, 2009 11:34 am

Not vested.

Sino-Environment said that its auditors PricewaterhouseCoopers have identified 'certain questionable cash transactions and matters' which may have a significant impact on the financial position of the company.

In May this year, the company's chairman and chief executive Sun Jiangrong lost his controlling stake in the group and in July, the company has defaulted on its convertible bonds

Source: DBSV
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Re: Sino Environment

Postby millionairemind » Wed Nov 11, 2009 9:36 am

Published November 11, 2009

Sino-Environment dismisses unit's financial controller

SINO-ENVIRONMENT Technology Group has dismissed Raynauld Liang Wee Leong, the financial controller of its Singapore subsidiary, Sino-Environment Clean Power Technology Pte Ltd, with immediate effect.

In an announcement yesterday, the China-based group said that Mr Liang 'has been summarily dismissed and his employment has been terminated yesterday by the company on 10 November 2009, on the grounds of misconduct and breach of duties'.

'Mr Liang will cease to hold any office with immediate effect,' it added. 'The company has reason to believe that Mr Liang may dispute the grounds of his summary dismissal and termination of employment.'

The group said it will identify and appoint a suitable replacement for Mr Liang as soon as reasonably practicable.

Prior to the summary dismissal, Mr Liang, who was appointed on Aug 1, 2008, also undertook equivalent duties in the group after the resignation of the chief financial officer in June 2009.

Sino-Environment had earlier this year defaulted on convertible bonds worth $149 million, while its chairman and chief executive Sun Jiangrong lost his controlling stake after all his pledged shares were force-sold by his creditor.


Trading of shares of the group has been suspended since Sept 23. This was followed by a disclosure in October that its auditors PricewaterhouseCoopers have identified 'certain questionable cash transactions and matters' which may have a significant impact on the financial position of the company.

The group has forwarded the findings of the auditors to the relevant authorities in Singapore and China.
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Re: Sino Environment

Postby Musicwhiz » Tue Nov 17, 2009 9:18 am

Nov 17, 2009
COMMENTARY
A cautionary tale for S-chip investors

By Goh Eng Yeow

One big question that emerges from the whole sorry Sino-Environment saga is why trading of its shares continued for six months after it became likely that the company would be brought down by the problems that beset it.

Waste recycler Sino-Environment hit the headlines in March when its founder and chairman, Mr Sun Jiangrong, abruptly admitted he had put the company in jeopardy as a result of excessive borrowings.

He had borrowed $120 million from hedge fund Stark Investments in August 2007 and pledged his entire 56.3 per cent stake in the firm as collateral.

But he failed to disclose to his board this personal financial arrangement when it gave the go-ahead for a $149 million bond issue 10 months later, whose

caveats included an undertaking that he should stay in control of the firm.

The early exit clause for bondholders to get back their money was activated when Mr Sun defaulted on a loan payment due to be repaid to Stark in February. This caused the hedge fund to seize control of his shares.

Traders are now asking, given the dire financial straits which the company found itself in because of Mr Sun's misadventure, would it not have been prudent to stop the trading of Sino-Environment shares at that point?

Instead, the company's shares were traded well into September before they were finally suspended.

One major unresolved question is how many fresh investors were lured into trading the counter during this period. They may have to write off their entire investments.

It now transpires that while they were happily trading the stock, there were developments brewing in the company which, had they known of them, would have stopped them in their tracks.

There were warning bells in the form of repeated extensions given by the Singapore Exchange (SGX) for the firm to report its results for the first and second quarters.

In May, the company said that it had asked auditors PricewaterhouseCoopers (PwC) to review significant cash transactions between January and March - a period coinciding with Mr Sun's loan default.

Last month - a full month after trading had been suspended - the company said that the review revealed 'certain questionable cash transactions and matters which may have a significant impact on the company's financial position'.

The revelations carried uncanny echoes of two other China-based firms which had encountered similar problems - fibre-maker Fibrechem Technologies and corn-starch producer China Sun Bio-chem. Both had encountered irregularities over their cash balances.

At least in Fibrechem and China Sun, the investing public was spared further anguish, as trading of their shares ceased after they failed to complete full-year audits of their accounts in February.

But at Sino-Environment, investors were treated to the charade of Mr Sun leading a walkout of his management team - Mr You Shengquan, Professor Li Shouxin and Madam Lin Xin - in May.

Their move forced independent directors - former MP Goh Chee Wee and Dr Wong Chiang Yin - to travel to Fuzhou, China to ask them to reconsider.

As a result, Mr Sun got himself reinstated as chairman and chief executive and refused to quit last month when asked to, after the irregularities were uncovered by PwC.

Instead, he turned the tables on the independent directors by sacking Mr Raynauld Liang Wee Leong, the financial controller of the company's Singapore unit, for reporting the PwC findings to the Commercial Affairs Department here and to the Chinese authorities.

Some market watchers now want the firm's shareholders to convene a special general meeting to oust Mr Sun.

But since the shares are effectively worthless - as the firm is no longer traded - it is unlikely that this will happen since most of them will have to write off their investments.

The sorry saga highlights the inability of independent directors to grapple with the problems that confront S-chips when their bosses go rogue.

For traders, it is difficult to decide which is the worse nightmare for independent directors - China Sun or Sino-Environment.

In China Sun, independent directors reflected their impotence when they had to reinstate the chairman only days after suspending him for failing to turn up for a board meeting to explain the firm's missing cash. At Sino-Environment, independent directors were made to look like fools when they failed to sack the chairman, after retaining his services when he had threatened to leave in May.

Even punishing Sino-Environment by threatening it with delisting may now be, at best, a symbolic move by SGX.

Trading of the company's shares is unlikely to resume in the light of what has transpired. There is also no guarantee that the SGX will be paid its listing fees.

Sino-Environment makes an interesting cautionary tale for investors who want to put their money into S-chips.
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Re: Sino Environment

Postby winston » Tue Dec 01, 2009 9:11 pm

The founder and chairman of troubled Sino-Environment Technology Group has
claimed that the company still has some $40 million in its coffers, and will soon disclose where it has parked this money.

David Gerald, who heads the Securities Securities Investors Association (Singapore), said this yesterday in a meeting with a group of minority shareholders.

Mr Gerald said that chairman Sun Jiangrong had assured him of the company's cash balance and that the executive directors (EDs) will protect the interest of the company.

Source: Business Times
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Re: Sino Environment

Postby Musicwhiz » Sat Dec 05, 2009 5:10 am

This is terrible! Where's the cash? Massive fraud going on ??? :shock:

Business Times - 05 Dec 2009

Mystery bankers, dodgy deals, missing millions


Sino-Environment supposedly paid millions for materials that were never delivered: PwC

By LYNETTE KHOO

(Singapore)

THE auditors travelled to China to probe cash transactions made by Sino-Environment. It turned out to be a rocky journey as the company staff and its supposed 'bankers' appeared to have laid roadblocks at every step.

The company's chairman and CEO refused to provide authorisation letters for PricewaterhouseCoopers (PwC) to obtain statements directly and independently from the banks. PwC officers were forced off the premises of one bank by a 'branch manager' (as he introduced himself) and had the roller shutters pulled down in their faces.

Elsewhere, a specific bank officer was similarly pre-arranged to meet the auditors and they could not verify the statements they were shown.

Even so, the special audit by PwC found that some $85 million worth of transactions were made by Sino-Environment without board approval and authorisation.

But no raw materials or equipment were delivered despite the purchase agreements nor was there any significant work done at the projects that the group purportedly invested in.

The damning report was released yesterday by the independent directors. PwC, the group's statutory auditor, was engaged in May to review significant cash transactions from January to June. In March, the company was in possible default on repayment of a $149 million convertible bond issue and its shares have not traded since September.

PwC based its findings on interviews and review of documents available up to Sept 15.

Its report noted that Sino-Environment unit, China Energy Environment, made a payment of about 920 million yen ($14 million) on May 22 allegedly to a Japanese company on behalf of another unit Fujian Thumb Environmental Facilities Co (Thumb Facilities) to buy Denox raw materials.

But as at Aug 26, no raw materials had been delivered. PwC was later informed by the Japanese firm that it did not enter into the purchase agreement, had not received any payment, and did not have an employee bearing the name of the representative who signed the contract.

The management took PwC to Xiamen International Bank rep office in Quanzhou, where there were only the bank officer, receptionist, and a 'branch manager'. The bank officer came with prepared bank statements and refused to take questions. Here was where PwC was forced off the premises by the 'branch manager'.

PwC also found that another Chinese subsidiary, Fujian Fuda Desai Environment Protection Co, paid a total of 230 million yuan ($50 million) to various parties from Jan 1 to June 30 to invest in four separate waste power plants projects. However, there were no documents showing that the rights to the rubbish dumpsites had been transferred and no significant work has been carried out on any of the projects.

Later, when the auditors tried to verify the bank documents (on these investment payments) given to them by the management through visiting Bank of Communications, Fuzhou branch, the specific bank officer who met them was a relationship manager for personal banking (according to his name card) - not for corporate banking.

The bank officer only provided the auditors with the documents the following day and refused to let them approach other bank staff to confirm the authenticity of the documents.

PwC noted that there were also instalment payments of 46.50 million yuan made by unit Thumb Facilities to buy equipment for a plant. The auditors said that they are unable to comment on the 'reasonableness of the costs' of these assets as they could not inspect them up-close during their site visits nor review any competitive tenders.

The audit findings also showed that another group subsidiary Fujian Weidong EPT Co made two interest-free loans totalling 55 million yuan to two parties not related to the group.

Independent directors (IDs) of the group - Goh Chee Wee and Wong Chiang Yin - yesterday expressed extreme concern about the PwC findings and reiterated their call for the executive directors (EDs) to step down.

'The findings in the PwC report call into question the conduct of the executive directors, and in particular, the conduct of Mr Sun Jiangrong, the chairman and CEO of the company,' the IDs said.

Mr Sun's personal financial woes snowballed into lawsuits between him and his creditor, his loss of a 56 per cent stake in the group and led to the group's possible default on the convertible bonds.

He claimed to have $40 million in the company's coffers during his phone conversation with David Gerald, president of Singapore Investors Association of Singapore (SIAS) on Monday. But the EDs clarified that this was an estimated aggregate sum which included trade and other receivables.

The IDs said that they were 'surprised and troubled' by this change of position and urged the EDs to inform shareholders of the exact amount of cash reserves and remit them to the group's Singapore bank account immediately.

The EDs had asserted that they would remit the $14 million from the account in a Xiamen bank to Singapore if the IDs agree to certain conditions. The IDs said that 'to avoid further debate on this issue', they agreed to the conditions and 'fully expect the EDs to remit the $14 million from XIB to the company's Singapore account without delay'.

Mr Gerald said that SIAS will approach the Chinese embassy in Singapore to relay its concerns.

'SIAS calls on the authorities in China to immediately demonstrate its willingness to conduct a thorough investigation into this company's affairs in China and bring any wrongdoing under the weight of the law, if the confidence of Singapore investors in Chinese companies is to be restored,' Mr Gerald said.

He also urged the IDs, together with shareholders, to take action to appoint a new board to ensure that the company's remaining assets are fully protected.
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Re: Sino Environment

Postby millionairemind » Fri Dec 11, 2009 1:53 pm

Got a friend whose has got $50K stuff in this counter :(
Published December 11, 2009

Court freezes big asset sales by Sino-Env EDs
They're also stopped from blocking probes by auditors


By JAMIE LEE

(SINGAPORE) Independent Directors (IDs) of Sino-Environment Technology Group were granted court orders yesterday to restrain the company's executive directors (EDs) from selling any major assets and signing new contracts of significant value.

Some other orders that the IDs are seeking - including one to stop the EDs from authorising bank transactions - will be reviewed by the High Court on Tuesday next week.

Justice Tay Yong Kwang granted orders that stop the EDs from freely selling any company asset worth more than 500,000 yuan and negotiating any contract exceeding five million yuan without the IDs' approval.

In addition, the EDs - chairman Sun Jiangrong and directors You Shengquan and Li Shouxin - cannot block any investigation by auditors.

As part of the remaining order applications to be reviewed next week, the IDs - Goh Chee Wee and Wong Chiang Yin - want to remove the EDs from the board at an extraordinary general meeting (EGM) and replace them with at least two new directors within 14 days from the EGM.

The IDs also want to replace the EDs and their nominees as authorised signatories of Sino-Environment's bank accounts here and in China.

And the IDs want to be informed if the EDs disburse any amount of more than 100,000 yuan.



Lawyers told BT that the EDs would be in contempt of the Singapore court should they disobey the court orders but would be punished only if they enter Singapore.

ID Mr Wong said he is satisfied with the outcome of events so far. 'The most important thing is to stop them from disappearing with all the assets,' he told BT.

The IDs' legal action follows a damning report released by PricewaterhouseCoopers (PwC) last week that uncovered $85 million of transactions at Sino-Environment that were made without board approval.

PwC also spotted a payment of 920 million yen for raw materials to a Japanese firm that has denied signing a contract or getting the money.

PwC also said it had been blocked from directly obtaining statements from some of Sino-Environment's banks.

Trouble at the company surfaced early this year when Mr Sun lost his controlling stake after defaulting on a personal loan. He had pledged the shares as debt collateral.

Tension between the IDs and the EDs escalated when the company's financial controller - who filed a police report based on the PwC audit - was fired in November on claims of misconduct.
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Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
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Re: Sino Environment

Postby winston » Fri Dec 11, 2009 1:59 pm

Court orders in Singapore enforcable in China ? :roll:
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Re: Sino Environment

Postby winston » Mon Dec 14, 2009 7:00 pm

And what are the "authorities" doing ?

SIAS' Gerald meets Chinese officials over troubled Sino-Env
By KALPANA RASHIWALA

Securities Investors Association (Singapore) president and CEO David Gerald on Monday afternoon met three offiicials from the Chinese Embassy in Singapore to convey to them the concerns of troubled Sino-Environment Technology Group's shareholders.

The Singapore-listed company is involved in the China water treatment and power plant businesses.

'Our immediate concern was the preservation of the assets of the company. I have made them aware of the police reports filed by the Financial Controller of the company in Fuzhou and Hong Kong,' Mr Gerald said in a statement.

He was assured by the Embassy's Minister Counsellor (Economic and Commercial) Li Ming Lin that since police reports have been filed in the two territories, he (Mr Li) believes the relevant China Authorities will take serious consideration of this matter.

'I informed Mr Li that the shareholders are worried about the current state of affairs of the company and handed him a copy of PricewaterhouseCoopers report released by the independent directors of Sino-Environment.

'I also informed Mr Li that Singapore investors in the company need assurance that this matter will be looked into and any wrong doings punished by the China Authorities,' Mr Gerald said in his statement.

http://www.businesstimes.com.sg/sub/lat ... 19,00.html?
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