not vested
Lumena rebounds as investors assured by Natallie Cai
Tuesday, April 03, 2012
Privately held China Lumena New Materials Corp (0067), whose shares rebounded yesterday after Friday's tumble, assured investors that major shareholder Suolang Duoji will
continue to hold more than 30 percent of the company.
Shares advanced by 24.5 percent to HK$1.73 yesterday after falling 28 percent on Friday as more troubling accounting issues related to non- state-owned mainland firms emerged.
On Friday, the firm said earnings jumped 74.4 percent to 1.27 billion yuan (HK$1.56 billion) last year, but account receivables also surged 77.6 percent to 1.4 billion yuan. Inventory rose 7.3 times to 67 million yuan in 2011.
Executive director Rudolf Yu Man-chiu yesterday said there are no accounting and management issues. "The share slump on Friday was probably due to sale by minority shareholders, and had nothing to do with our operations."
According to market rumors, a hedge fund had sold the stock on Friday in afternoon trading.
Gross profit margin of the Chengdu-based
thenardite - an edible mineral powder used in powdered detergent, glass and pharmaceutical products - and resin products maker fell about 9 percentage points to 63.5 percent in 2011.
"Margin was dragged down by lower margin of PPS [polyphenyline sulfide resin] products we acquired from Sino Polymer New Materials last year, and also the selling price of thenardite fell in the fourth quarter," chief executive Zhang Daming said. Gross profit margin will remain above 60 percent this year, he said.
http://www.thestandard.com.hk/news_deta ... 20403&fc=2
It's all about "how much you made when you were right" & "how little you lost when you were wrong"