1. An analysis report alleges that Asia Plastic Recycling Holding Limited has overstated its capital expenditures, earnings, and assets based on publicly available tax, land, and government records. The report estimates APR's actual earnings are around 90% less than reported.
2. Records indicate APR overpaid for land purchases for factory expansions by 2.5-4x the actual amounts. Tax records show APR reported income taxes paid were 88-96% higher than amounts listed by the local government.
3. Given significant debt obligations and doubts about the authenticity of APR's reported financials, the analysis puts the equity value of APR at 0.
- ASX is currently trading at a discounted valuation of 13.7x PE due to cyclical and structural concerns, but offers upside potential from a cyclical recovery.
- The report provides valuation scenarios that see potential upside from market recovery and limited downside, with a positive risk/reward ratio.
- While competition may impact some of ASX's revenue lines, it has pricing power in other segments and multiple growth options to offset competitive pressures over the medium term.
Noble Group, a Repeat of Enron? (Iceberg Research)asianextractor
- Noble Group classifies some of its minority investments as associates through its accounting practices in order to avoid recognizing large impairments and to fabricate profit. One example is Yancoal, where the carrying value on Noble's books is $603 million higher than the market value, representing a $603 million impairment that has not been recognized.
- The poor financial performance of Noble's associates has directly impacted the company's cash position, as Noble has been forced to recapitalize struggling associates. Cash outflows to associates and joint ventures since 2011 total $230 million.
- Noble's claim that losses from associates are "non-cash" is misleading, as the deteriorating value of listed associates reveals deep financial problems,
Capital Structure of Cement Industry in Bangladesh.Farabi Ahmed
This document is a report on the capital structure of the cement industry in Bangladesh submitted to Dr. Samiul Parvez Ahmed at Independent University, Bangladesh by a group of four students. It includes an introduction, literature review on capital structure theories, objectives and methodology for analyzing capital structure of five cement companies in Bangladesh over six years. The report contains sections on variables, data analysis from annual reports of the companies, results from statistical software, and conclusions and recommendations.
This document discusses a study analyzing the influence of debt to equity ratio, inventory turnover, and current ratio on return on equity for pharmaceutical companies listed on the Indonesia stock exchange. It provides background on each variable and discusses relevant literature. The study uses a sample of 8 companies and analyzes the variables using multiple linear regression. The results found that debt to equity ratio did not significantly influence return on equity individually, but inventory turnover and current ratio did significantly influence it individually. Together, the three variables were found to significantly influence return on equity.
Crompton Greaves: Ideally places to benefit from an improved economic growth,...IndiaNotes.com
1) Crompton Greaves' management indicated that orders in the third quarter of 2014 were higher margin than existing backlog in the power business, and outlook for domestic and export orders remains positive.
2) The Canadian and US subsidiaries are expected to break even in the next 2-3 quarters after restructuring and backlog clearing. There is also potential for a large smart meter order from France and Poland.
3) In consumer business, Crompton Greaves is focusing on increasing retailer reach for premium fans and lighting products.
This document introduces SPACs (special purpose acquisition companies) and discusses their benefits. It explains that a SPAC is a "blank check" company formed to raise capital through an IPO to acquire a private company. The sponsor works with an investment bank to create and list the SPAC on an exchange like Nasdaq. Investors can then invest in the SPAC and the sponsor will use the funds to acquire a target company within 2 years. This allows pre-IPO companies to go public through an acquisition while providing investors with liquidity. The document outlines the costs and process of creating a SPAC and compares it to a traditional IPO.
- ASX is currently trading at a discounted valuation of 13.7x PE due to cyclical and structural concerns, but offers upside potential from a cyclical recovery.
- The report provides valuation scenarios that see potential upside from market recovery and limited downside, with a positive risk/reward ratio.
- While competition may impact some of ASX's revenue lines, it has pricing power in other segments and multiple growth options to offset competitive pressures over the medium term.
Noble Group, a Repeat of Enron? (Iceberg Research)asianextractor
- Noble Group classifies some of its minority investments as associates through its accounting practices in order to avoid recognizing large impairments and to fabricate profit. One example is Yancoal, where the carrying value on Noble's books is $603 million higher than the market value, representing a $603 million impairment that has not been recognized.
- The poor financial performance of Noble's associates has directly impacted the company's cash position, as Noble has been forced to recapitalize struggling associates. Cash outflows to associates and joint ventures since 2011 total $230 million.
- Noble's claim that losses from associates are "non-cash" is misleading, as the deteriorating value of listed associates reveals deep financial problems,
Capital Structure of Cement Industry in Bangladesh.Farabi Ahmed
This document is a report on the capital structure of the cement industry in Bangladesh submitted to Dr. Samiul Parvez Ahmed at Independent University, Bangladesh by a group of four students. It includes an introduction, literature review on capital structure theories, objectives and methodology for analyzing capital structure of five cement companies in Bangladesh over six years. The report contains sections on variables, data analysis from annual reports of the companies, results from statistical software, and conclusions and recommendations.
This document discusses a study analyzing the influence of debt to equity ratio, inventory turnover, and current ratio on return on equity for pharmaceutical companies listed on the Indonesia stock exchange. It provides background on each variable and discusses relevant literature. The study uses a sample of 8 companies and analyzes the variables using multiple linear regression. The results found that debt to equity ratio did not significantly influence return on equity individually, but inventory turnover and current ratio did significantly influence it individually. Together, the three variables were found to significantly influence return on equity.
Crompton Greaves: Ideally places to benefit from an improved economic growth,...IndiaNotes.com
1) Crompton Greaves' management indicated that orders in the third quarter of 2014 were higher margin than existing backlog in the power business, and outlook for domestic and export orders remains positive.
2) The Canadian and US subsidiaries are expected to break even in the next 2-3 quarters after restructuring and backlog clearing. There is also potential for a large smart meter order from France and Poland.
3) In consumer business, Crompton Greaves is focusing on increasing retailer reach for premium fans and lighting products.
This document introduces SPACs (special purpose acquisition companies) and discusses their benefits. It explains that a SPAC is a "blank check" company formed to raise capital through an IPO to acquire a private company. The sponsor works with an investment bank to create and list the SPAC on an exchange like Nasdaq. Investors can then invest in the SPAC and the sponsor will use the funds to acquire a target company within 2 years. This allows pre-IPO companies to go public through an acquisition while providing investors with liquidity. The document outlines the costs and process of creating a SPAC and compares it to a traditional IPO.
The document provides an overview of the DSP Tax Saver Fund, an open-ended equity linked savings scheme (ELSS) that aims to provide long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments across market capitalizations. The fund uses a blend of top-down and bottom-up approaches, investing across sectors based on macro analysis and selecting stocks based on fundamental research. It has outperformed its benchmark index on a risk-adjusted basis over the past 1, 3 and 5 years under the management of Rohit Singhania since July 2015. The current portfolio has a large cap bias and is concentrated in the financial services, healthcare, energy and materials sectors.
This document analyzes and compares key financial ratios and cash flows of Reliance Capital and India Bulls for the years 2005-2007. It finds that while both companies have grown profits significantly over this period, Reliance Capital relies more heavily on investment income, has higher leverage, and a larger capital base. India Bulls invests a larger portion of profits back into assets. Both companies have increased borrowing substantially to fund expansion. Overall, Reliance Capital's profitability is more dependent on one-time investment gains while India Bulls maintains steadier margins.
Semifinal Case Solution by Benchmark company at Changellenge Cup Moscow 2012esprezo
PwC proposes providing audit and advisory services to help agricultural company Polesye Agro expand its business. PwC recommends that Polesye Agro invest $8.4 billion in a new project in Kursk and finance it through foreign credit and reinvested profits. In the long term, PwC suggests Polesye Agro invest $6-7 billion in acquisitions and new facilities, financing this through an IPO in 2015 and reinvested profits. PwC will provide audit services including pre-IPO auditing, as well as advisory services to support Polesye Agro's expansion, for a total estimated cost of $1.4 million.
This document summarizes recent trends in corporate financing in India. It notes that India's macroeconomic indicators have improved, placing the economy and stock markets in a better state. It then discusses trends in the primary and secondary markets over the past year. The primary market saw a 23% increase in total resources mobilized in 2014-15 compared to the prior year. In the secondary market, the BSE Sensex and NSE Nifty indexes increased over the past year. The document then discusses the various sources of corporate financing available, including an increased activity in IPOs as companies seek to raise funds for expansion. SEBI has also taken steps to improve the IPO process and encourage listings of startups and SMEs.
This document summarizes a study that examined the effect of liquidity, leverage, and total asset turnover on profitability of manufacturing companies in Indonesia from 2012-2017. The study found that liquidity, leverage, and total asset turnover simultaneously had a significant positive effect on profitability. Individually, liquidity, leverage, and total asset turnover were also found to positively impact profitability. The results also indicated that asset turnover was the dominant factor affecting profitability. The study recommends prioritizing listed manufacturing companies in infrastructure development projects.
Escorts reported strong tractor volume growth in February 2014, with domestic sales up 6.8% YoY to 4,581 tractors. The company remains positive on growth prospects in FY2014 and beyond, expecting demand to improve with economic recovery. While cautious on the construction equipment segment, analysts revised estimates and rating on Escorts from "Reduce" to "Buy" with a revised target price of Rs. 175. The positive tractor volume performance in CY2013 and expected further demand growth support maintaining a positive view on the stock.
Financial Statement Analysis of Dabur India Limited IndranilMondal19
This document presents a financial statement analysis of Dabur India Ltd. It includes:
1) Assumptions for forecasting key financial metrics like sales, costs, debt repayment, and tax rates.
2) Forecasts and charts showing trends for metrics like EBITDA and PAT margins, debt-to-equity ratio, interest coverage ratio, and earnings per share through 2023.
3) An overview of Dabur's business model including its product portfolio, overseas acquisitions, sales breakdown, and details on its beauty retail store brand NewU.
4) Pie charts showing the breakdown of shareholding and an note on predictions for Dabur's share price to reach 500 in the
Pidilite Ind: Reports 11% volume growth in a tough operating environment - Pr...IndiaNotes.com
- Pidilite Industries (PIDI) reported an 11% increase in volumes but adjusted profit declined 6.3% due to higher advertising spending and lower non-operating income.
- The consumer and bazaar products division saw volume growth of 11% but margins declined due to higher advertising spending and voluntary retirement costs.
- The international business division reported improved performance across regions except for South America and Bangladesh, which faced political turmoil.
The document discusses key drivers of long-term equity returns, focusing on the importance of investing in high-quality businesses. It analyzes companies in the BSE 500 Index between 2005-2013 that achieved over 20% compound annual returns, finding most had high return on equity, dividend payout ratios, and low debt levels. It argues quality, defined as a business's ability to generate returns above its cost of capital, is the primary determinant of investment returns. Quality must also be durable to avoid value traps. The newsletter examines examples to illustrate this point.
Full Analyst Report: IntelGenx Tech. Rating: Buy. IntelGenx Looking Towards A...Viral Network Inc
- The report provides an investment analysis of IntelGenx Technologies Corp (IGXT), assigning a "Buy" rating and $3 price target.
- Key catalysts in 2013 include expected acceleration in sales of IGXT's migraine drug Forfivo and regulatory submissions of new drug candidates.
- IGXT is developing novel formulations of existing drugs and recently appointed a new CEO to help expand partnerships.
WORKING CAPITAL REQURIEMENT OF 2 & 3 WHEELERS OF AUTO INDUSTRY LIKE TVS,HERO MOTOCORP,BAJAJ AUTO,MAH SCOOTERS,ATUL MOTORS LTD AND ITS RATIO ANALYSIS 2015
SUBMITTED BY AKSHIT JAIN
The document discusses the challenges facing chief financial officers in closing the 2020 financial year due to the COVID-19 pandemic. It notes that staff may be working remotely, disruptions occurred, and systems/controls changed. Business conditions also changed as supply chains were disrupted and strategies changed. As a result, the CFO faces more issues than ever in the 2020 financial closing. The presentation then outlines the role of the CFO and some potential issues they may face in the closing.
ROI Acquistion Corp. II SPAC Acquiring A Highly Attractive Asset In An Explos...Lester Goh
ROI Acquistion Corp. II (ROIQ) is a SPAC that plans to acquire Ascend Telecom, a telecom infrastructure company in India. Ascend operates in a growing industry with favorable regulations and possesses competitive advantages like strategic tower locations. While Ascend has strong growth potential, ROIQ currently trades at a significant discount to peers due to its SPAC structure and lack of research coverage. The acquisition of Ascend represents an opportunity for substantial upside if the valuation gap with peers closes to reflect Ascend's fundamentals and industry tailwinds.
What the SPAC Trend Means for Digital Health, Rock HealthLevi Shapiro
What the SPAC Trend Means for Digital Health- presentation by Sari Kaganoff, Head, Consulting, Rock Health for mHealth Israel, May 12, 2021. Covers four parts: What’s a SPAC? Digital health’s very own SPAC boom. SPAC sponsors and targets in digital health. What SPACs mean for digital health. SPAC definition and fundamentals. Digital health activity has accelerated recently after a decade of steady growth. There have already been more completed or announced public exits in digital health in 2021 than in the last two years combined. The vast majority of recent public exit activity in digital health is SPAC-triggered. SPAC sponsors in digital health are targeting companies with slightly less funding and experience than those going public through an IPO. There is a potential supply-demand mismatch between sponsors and targets. The SPAC and IPO processes have different advantages for management teams. What this all means: SPACs are delivering more liquidity in digital health, faster.
Just dial Ltd. is an Indian local search engine company that provides information and reviews of local businesses through multiple platforms such as the internet, mobile apps, and SMS. It has the first mover advantage in local search services in India, dating back to 1996. The document discusses Just dial's IPO, set to take place from May 20-22, 2013. It presents an analysis of the company's financials, business model, strengths, and risks. Overall, it recommends avoiding the IPO due to steep valuation and risks from technological changes and new entrants.
Hawaiian Holdings is poised to generate significant free cash flow starting in 2016 as its capital expenditure program winds down. This will allow the company to return capital to shareholders for the first time in years through share repurchases or dividends. Hawaiian's margins are also expected to rise in 2014 as new routes mature, better reflecting the company's economic potential. The appointment of an activist investor to Hawaiian's board who owns 10.8% of the company increases the likelihood of capital returns. Hawaiian remains undervalued relative to its peers and the overall airline sector.
The document is a project report submitted for a B.Com degree. It includes an introduction, acknowledgements, supervisor's certificate, student declaration, index, and the beginning of several chapters. The introduction provides background on the analysis of Nestle India and Engro Foods, the objectives of analyzing their financial ratios, and the methodology used. It will analyze annual reports, financial statements, and calculate various financial ratios to evaluate the financial position and performance of the two companies.
RATIO ANALYSIS PROJECT PPT OF SHSSKL NIPANI MBA FINANCEBabasab Patil
The document analyzes the financial performance of Halasidhanath Sahakari Sakhar Karkhana Ltd. over a 5-year period using financial ratios. Key findings include:
- Gross and net profit margins fluctuated over time, with the highest gross profit margin of 23.26% in 2004-05 and highest net profit margin of 4.84% also in 2004-05.
- Current and liquidity ratios showed the company generally had sufficient current assets to cover current liabilities, except in 2005-06 and 2007-08 when ratios fell below safe levels.
- Inventory and asset turnover ratios varied year-to-year, suggesting inconsistent efficiency in utilizing assets for sales generation.
- Direct
The document introduces ProtoSpace, a FabLab located in Utrecht, Netherlands that provides access to tools and machines for digital fabrication and personal manufacturing. It discusses the history and growth of FabLabs globally and how they empower users' creativity by allowing them to design, prototype, and manufacture objects. The FabLab follows the FabCharter and provides various machines and tools like 3D printers, laser cutters, and microcontrollers to enable users to make almost anything.
The document discusses a classroom project to track and calculate the landfill space saved by recycling plastic bottles. It outlines that the class recycled 2 bottles in the first week, saving 300 cm3 of landfill space. If all classrooms and schools recycled bottles, over 1 km3 of landfill space could be saved each year, equivalent to the amount of water that flows through the Mississippi River daily. The document encourages recycling plastic bottles to conserve resources and landfill space.
This poster describes the affects of plastic used plastic goods that do not biodegrade naturally on environment and how plastic recycling can play a great role in playing the savior on the case.
The document provides an overview of the DSP Tax Saver Fund, an open-ended equity linked savings scheme (ELSS) that aims to provide long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments across market capitalizations. The fund uses a blend of top-down and bottom-up approaches, investing across sectors based on macro analysis and selecting stocks based on fundamental research. It has outperformed its benchmark index on a risk-adjusted basis over the past 1, 3 and 5 years under the management of Rohit Singhania since July 2015. The current portfolio has a large cap bias and is concentrated in the financial services, healthcare, energy and materials sectors.
This document analyzes and compares key financial ratios and cash flows of Reliance Capital and India Bulls for the years 2005-2007. It finds that while both companies have grown profits significantly over this period, Reliance Capital relies more heavily on investment income, has higher leverage, and a larger capital base. India Bulls invests a larger portion of profits back into assets. Both companies have increased borrowing substantially to fund expansion. Overall, Reliance Capital's profitability is more dependent on one-time investment gains while India Bulls maintains steadier margins.
Semifinal Case Solution by Benchmark company at Changellenge Cup Moscow 2012esprezo
PwC proposes providing audit and advisory services to help agricultural company Polesye Agro expand its business. PwC recommends that Polesye Agro invest $8.4 billion in a new project in Kursk and finance it through foreign credit and reinvested profits. In the long term, PwC suggests Polesye Agro invest $6-7 billion in acquisitions and new facilities, financing this through an IPO in 2015 and reinvested profits. PwC will provide audit services including pre-IPO auditing, as well as advisory services to support Polesye Agro's expansion, for a total estimated cost of $1.4 million.
This document summarizes recent trends in corporate financing in India. It notes that India's macroeconomic indicators have improved, placing the economy and stock markets in a better state. It then discusses trends in the primary and secondary markets over the past year. The primary market saw a 23% increase in total resources mobilized in 2014-15 compared to the prior year. In the secondary market, the BSE Sensex and NSE Nifty indexes increased over the past year. The document then discusses the various sources of corporate financing available, including an increased activity in IPOs as companies seek to raise funds for expansion. SEBI has also taken steps to improve the IPO process and encourage listings of startups and SMEs.
This document summarizes a study that examined the effect of liquidity, leverage, and total asset turnover on profitability of manufacturing companies in Indonesia from 2012-2017. The study found that liquidity, leverage, and total asset turnover simultaneously had a significant positive effect on profitability. Individually, liquidity, leverage, and total asset turnover were also found to positively impact profitability. The results also indicated that asset turnover was the dominant factor affecting profitability. The study recommends prioritizing listed manufacturing companies in infrastructure development projects.
Escorts reported strong tractor volume growth in February 2014, with domestic sales up 6.8% YoY to 4,581 tractors. The company remains positive on growth prospects in FY2014 and beyond, expecting demand to improve with economic recovery. While cautious on the construction equipment segment, analysts revised estimates and rating on Escorts from "Reduce" to "Buy" with a revised target price of Rs. 175. The positive tractor volume performance in CY2013 and expected further demand growth support maintaining a positive view on the stock.
Financial Statement Analysis of Dabur India Limited IndranilMondal19
This document presents a financial statement analysis of Dabur India Ltd. It includes:
1) Assumptions for forecasting key financial metrics like sales, costs, debt repayment, and tax rates.
2) Forecasts and charts showing trends for metrics like EBITDA and PAT margins, debt-to-equity ratio, interest coverage ratio, and earnings per share through 2023.
3) An overview of Dabur's business model including its product portfolio, overseas acquisitions, sales breakdown, and details on its beauty retail store brand NewU.
4) Pie charts showing the breakdown of shareholding and an note on predictions for Dabur's share price to reach 500 in the
Pidilite Ind: Reports 11% volume growth in a tough operating environment - Pr...IndiaNotes.com
- Pidilite Industries (PIDI) reported an 11% increase in volumes but adjusted profit declined 6.3% due to higher advertising spending and lower non-operating income.
- The consumer and bazaar products division saw volume growth of 11% but margins declined due to higher advertising spending and voluntary retirement costs.
- The international business division reported improved performance across regions except for South America and Bangladesh, which faced political turmoil.
The document discusses key drivers of long-term equity returns, focusing on the importance of investing in high-quality businesses. It analyzes companies in the BSE 500 Index between 2005-2013 that achieved over 20% compound annual returns, finding most had high return on equity, dividend payout ratios, and low debt levels. It argues quality, defined as a business's ability to generate returns above its cost of capital, is the primary determinant of investment returns. Quality must also be durable to avoid value traps. The newsletter examines examples to illustrate this point.
Full Analyst Report: IntelGenx Tech. Rating: Buy. IntelGenx Looking Towards A...Viral Network Inc
- The report provides an investment analysis of IntelGenx Technologies Corp (IGXT), assigning a "Buy" rating and $3 price target.
- Key catalysts in 2013 include expected acceleration in sales of IGXT's migraine drug Forfivo and regulatory submissions of new drug candidates.
- IGXT is developing novel formulations of existing drugs and recently appointed a new CEO to help expand partnerships.
WORKING CAPITAL REQURIEMENT OF 2 & 3 WHEELERS OF AUTO INDUSTRY LIKE TVS,HERO MOTOCORP,BAJAJ AUTO,MAH SCOOTERS,ATUL MOTORS LTD AND ITS RATIO ANALYSIS 2015
SUBMITTED BY AKSHIT JAIN
The document discusses the challenges facing chief financial officers in closing the 2020 financial year due to the COVID-19 pandemic. It notes that staff may be working remotely, disruptions occurred, and systems/controls changed. Business conditions also changed as supply chains were disrupted and strategies changed. As a result, the CFO faces more issues than ever in the 2020 financial closing. The presentation then outlines the role of the CFO and some potential issues they may face in the closing.
ROI Acquistion Corp. II SPAC Acquiring A Highly Attractive Asset In An Explos...Lester Goh
ROI Acquistion Corp. II (ROIQ) is a SPAC that plans to acquire Ascend Telecom, a telecom infrastructure company in India. Ascend operates in a growing industry with favorable regulations and possesses competitive advantages like strategic tower locations. While Ascend has strong growth potential, ROIQ currently trades at a significant discount to peers due to its SPAC structure and lack of research coverage. The acquisition of Ascend represents an opportunity for substantial upside if the valuation gap with peers closes to reflect Ascend's fundamentals and industry tailwinds.
What the SPAC Trend Means for Digital Health, Rock HealthLevi Shapiro
What the SPAC Trend Means for Digital Health- presentation by Sari Kaganoff, Head, Consulting, Rock Health for mHealth Israel, May 12, 2021. Covers four parts: What’s a SPAC? Digital health’s very own SPAC boom. SPAC sponsors and targets in digital health. What SPACs mean for digital health. SPAC definition and fundamentals. Digital health activity has accelerated recently after a decade of steady growth. There have already been more completed or announced public exits in digital health in 2021 than in the last two years combined. The vast majority of recent public exit activity in digital health is SPAC-triggered. SPAC sponsors in digital health are targeting companies with slightly less funding and experience than those going public through an IPO. There is a potential supply-demand mismatch between sponsors and targets. The SPAC and IPO processes have different advantages for management teams. What this all means: SPACs are delivering more liquidity in digital health, faster.
Just dial Ltd. is an Indian local search engine company that provides information and reviews of local businesses through multiple platforms such as the internet, mobile apps, and SMS. It has the first mover advantage in local search services in India, dating back to 1996. The document discusses Just dial's IPO, set to take place from May 20-22, 2013. It presents an analysis of the company's financials, business model, strengths, and risks. Overall, it recommends avoiding the IPO due to steep valuation and risks from technological changes and new entrants.
Hawaiian Holdings is poised to generate significant free cash flow starting in 2016 as its capital expenditure program winds down. This will allow the company to return capital to shareholders for the first time in years through share repurchases or dividends. Hawaiian's margins are also expected to rise in 2014 as new routes mature, better reflecting the company's economic potential. The appointment of an activist investor to Hawaiian's board who owns 10.8% of the company increases the likelihood of capital returns. Hawaiian remains undervalued relative to its peers and the overall airline sector.
The document is a project report submitted for a B.Com degree. It includes an introduction, acknowledgements, supervisor's certificate, student declaration, index, and the beginning of several chapters. The introduction provides background on the analysis of Nestle India and Engro Foods, the objectives of analyzing their financial ratios, and the methodology used. It will analyze annual reports, financial statements, and calculate various financial ratios to evaluate the financial position and performance of the two companies.
RATIO ANALYSIS PROJECT PPT OF SHSSKL NIPANI MBA FINANCEBabasab Patil
The document analyzes the financial performance of Halasidhanath Sahakari Sakhar Karkhana Ltd. over a 5-year period using financial ratios. Key findings include:
- Gross and net profit margins fluctuated over time, with the highest gross profit margin of 23.26% in 2004-05 and highest net profit margin of 4.84% also in 2004-05.
- Current and liquidity ratios showed the company generally had sufficient current assets to cover current liabilities, except in 2005-06 and 2007-08 when ratios fell below safe levels.
- Inventory and asset turnover ratios varied year-to-year, suggesting inconsistent efficiency in utilizing assets for sales generation.
- Direct
The document introduces ProtoSpace, a FabLab located in Utrecht, Netherlands that provides access to tools and machines for digital fabrication and personal manufacturing. It discusses the history and growth of FabLabs globally and how they empower users' creativity by allowing them to design, prototype, and manufacture objects. The FabLab follows the FabCharter and provides various machines and tools like 3D printers, laser cutters, and microcontrollers to enable users to make almost anything.
The document discusses a classroom project to track and calculate the landfill space saved by recycling plastic bottles. It outlines that the class recycled 2 bottles in the first week, saving 300 cm3 of landfill space. If all classrooms and schools recycled bottles, over 1 km3 of landfill space could be saved each year, equivalent to the amount of water that flows through the Mississippi River daily. The document encourages recycling plastic bottles to conserve resources and landfill space.
This poster describes the affects of plastic used plastic goods that do not biodegrade naturally on environment and how plastic recycling can play a great role in playing the savior on the case.
The document discusses different types of plastic waste and how they can be recycled. It describes polyethylene terephthalate (PET) plastic waste, which is thrown in yellow containers and can be recycled into new PET products. It also mentions how polyvinyl chloride (PVC) can be recycled into items like pipes, siding, and flooring. The document lists various plastic types like polyethylene, polypropylene, polystyrene, and polycarbonate that can be treated and recycled into new products like industrial cans, street furniture, clothing, and building materials.
This document provides information about plastic recycling by an organization called Altacit. It includes their contact details in Chennai, Bangalore and Coimbatore. It then discusses what plastics can and cannot be recycled, how the plastic recycling process works from collection to processing into new products, and examples of plastics numbered 1-7 that are accepted for recycling.
http://www.polychem-usa.com/recycling-services/ | Of all the plastic thrown away every year, only 9% of it is recycled. Un-recycled plastics have a large negative effect on the environment and the economy, and US businesses can have a big part in reducing that impact by sorting their plastic waste and purchasing items made from post-consumer plastic.
Plastic Waste Management and Recycling Technology : P2Vignesh Sekar
To emphasize the reduced use of plastic and the beneficial management of plastic waste. Efficient transformation of plastic into energy and fuel. Making our environment an eco friendly zone. Modify the design of recycling Machines. Install the recycling unit at TNAU. Compare the envi.factors of Coimbatore with other cities. Making our Eco fest - 15------Plastic free & Models
The document discusses plastic pollution and recycling. It notes that plastic production has greatly increased globally but plastic is very slow to decompose, with some plastics taking over 1000 years. This causes plastic pollution in oceans, where it kills and endangers wildlife through entanglement and ingestion. The document advocates for more sustainable plastic recycling approaches to address this growing environmental problem.
1. An investigation was conducted into Prince Frog International Holdings, a Chinese producer of childcare products, after a blogger publicly questioned the accuracy of the company's reported sales figures.
2. The investigation found evidence from Nielsen retail sales data, a Chinese government consumer brand awareness survey, tax records, and customer regulatory filings that independently indicate the company's actual sales are less than 25% of the figures reported in public filings.
3. The research firm conducting the investigation concluded Prince Frog overstated its financials and business scale to investors and regulators in violation of Hong Kong securities laws, and valued the company's shares between HKD 0.74 to HKD 0.98 per share based on their analysis.
Glaucus research ozner-water-hk_2014-strong_sell_feb_16_2015asianextractor
This report summarizes evidence that Ozner Water International Holding Ltd has exaggerated its financial performance and misled investors. It finds that government records show the company's revenues, production, and profits are much smaller than reported. Additionally, it was previously owned by another company pursuing the same business that reported significant losses, contradicting Ozner's claims of profitability. The report concludes Ozner is overvalued and likely to face further decline.
1. According to publicly available SAIC filings and tax records, Lumena's reported PPS sales and profitability for subsidiaries Deyang Chemical and Deyang Materials were overstated by 90% compared to actual figures from these sources.
2. SAIC filings of Lumena's largest thenardite customer, Chengdu Yijing, show its purchases from Lumena were only 10% of what Lumena reported, indicating Lumena overstated actual sales.
3. SAIC filings for Lumena's two thenardite-producing subsidiaries in 2010 show combined revenues were only 7.7% of what Lumena reported, with no reported profits, suggesting Lumena's financials
Minzhong Food Corporation is a Chinese producer of fresh and processed vegetables. Glaucus Research puts a price target of SGD 0.00 on Minzhong shares, believing the company has significantly deceived regulators and investors about the scale of its business and financial performance, similarly to another Chinese vegetable producer Chaoda that was halted for allegations of fraud. Evidence cited includes fabricated sales figures to top customers, a revoked license for its largest supplier, suspicious capital expenditures that don't match regulatory filings, and financial performance that appears unrealistic for its business model. Glaucus believes Minzhong relies on debt/equity financing rather than cash flow and has limited offshore assets, making recovery of losses unlikely.
The DuPont analysis breaks down return on equity (ROE) into three components: net profit margin, total asset turnover, and financial leverage. This allows companies to identify which specific factors are driving ROE and how they can be improved. The analysis provides a more comprehensive understanding of a company's profitability and valuation than looking at ROE alone. It is useful for comparing competitors and determining whether high ROE is due to sustainable or risky factors.
The DuPont analysis breaks down return on equity (ROE) into three components: net profit margin, total asset turnover, and financial leverage. This allows companies to identify which specific factors are driving ROE and how they can be improved. The analysis provides a more comprehensive understanding of a company's profitability and valuation than looking at ROE alone. It is useful for comparing competitors and determining whether high ROE is due to sustainable or risky factors.
Financial Statement Analysis Project Group 4CollegeL
Lowe's and Home Depot are home improvement retailers headquartered in the US. Both saw increases in total revenues and net income from 2013 to 2014 driven by growth in comparable store sales. Lowe's revenue grew 5.3% while net income grew 18%. Home Depot saw revenue growth of 5.5% and net income growth of 17.8%. Earnings per share also increased for both companies over this period due to higher net income and decreased shares outstanding. While Home Depot has approximately double the earnings per share of Lowe's, both saw similar percentage increases, indicating growing profitability.
IntroductionThe company that has been researched is the Toyota .docxmariuse18nolet
Introduction:
The company that has been researched is the Toyota motor Corporation
Ticker symbol
TM
Exchange
New York Stock Exchange (NYSE)
No of common shares outstanding
1,583,714,334
Industry
Consumer goods
Country
Japan
Toyota Motor Corporation is considered to be a leading automaker headquartered in Japan. The human resources vertical employed 317,734 people and was the largest automobile manufacturer by production. Founded in 1937, the automaker has grown and has its presence in all countries of the world .the Toyota motor corporation group is considered to be one of the largest conglomerates in the world
A. Provide a rationale for the U.S. publicly traded company that you selected, indicating the significant factors driving your decision as a financial manager
Some financial highlights of the company which favorably incline towards investing in this company:
1. The third quarter result of the financial results of the firm showed that on a consolidated basis,
a. net revenues for the period totaled 19.12 trillion yen, an increase of 17.8 percent compared to the same period last fiscal year.
b. Operating income increased from 818.5 billion yen to 1.85 trillion yen,
c. Income before income taxes was 2.02 trillion yen.
d. Net income increased from 648.1 billion yen to 1.52 trillion yen
e. Operating income increased by 1.03 trillion yen.
Some of the major contributors to the increase in income were cost reduction efforts and favorable currency fluctuations. The global sales of automobiles under the group registered a 25% increase globally.
As the financial manger of a company, my instincts towards advising a client to invest in a company are grounded by strong fundamentals. Toyota Motor Corporation has been very strong in its financial fundamentals. Companies whose financial fundamentals are very strong make good investments portfolios.
Such firms are called blue chip companies and trades very selectively on the stock markets are can be studied in depth for any investment purposes. Such firms rarely indulge themselves in any kind of compliance issues are generally favored by investors.
Toyota Motor Corporation is one such stock that as a finance manager I would recommend to buy and hold because the firm has been in the news for all the right reasons and for its future plans of expansion with very strategic mergers and acquisitions. The firm’s product ranges especially the new line of green automotive ranges have caught the fancy of al countries and it is expected that the company will be giving a return of more than 22% to its shareholders (toyotaglobal.com).
B. Determine the profile of the investor for which this company may be a fit, relative to that potential investor's investment strategy. Provide support for your rationale.
The profile of a suitable investor for the company would be a conservative risk taker. The investor would like to buy the stock and hold it for long periods so as to partake of the .
Allergan (AGN) - Taking a calculated risk at right priceDavid Nguyen
Allergan is a global specialty pharmaceutical company that has expanded its therapeutic areas through acquisitions. It has dominant franchises in areas like Botox and generates $5B+ in annual free cash flow. Allergan's acquisition of external discoveries and focus on development and commercialization allows it to spend in line with pharmaceutical peers on R&D. The analyst recommends buying Allergan stock starting at $220, adding positions at 10% intervals down to $180, seeing potential for 20% price appreciation to $300 based on the company's growth opportunities. However, risks include generic competition and pipeline failures.
Dr. Reddy's Laboratories is an Indian pharmaceutical company founded in 1984 with total revenue of Rs. 10,863.90 Cr in FY 2018-19. The document analyzes Dr. Reddy's financial ratios over 5 years compared to industry average company GlaxoSmithKline, finding that while Dr. Reddy's has low debt and good liquidity, it lags in efficient use of assets and inventory/receivables management. The analysis concludes Dr. Reddy's has overall financial health but needs to improve profitability and asset utilization to match industry standards.
ASSESSMENT 3 MARKETING PLAN (35 marks) A Marketing Plan provide.docxcargillfilberto
ASSESSMENT 3: MARKETING PLAN (35 marks)
A Marketing Plan provides a vision and strategy proposal to position a business or product or service in the marketplace. The right marketing plan identifies who the target customers are, how to reach them, what strategies to use, and how to retain your customers over time. This assessment involves the preparation of a marketing plan based on the marketing activities of a selected company.
This is a group project (3-4 members per group) and the marketing plan effectively needs to be developed throughout the semester. For the project, your group can choose any one of the local businesses (or a product or service of that business) from the following and identify a marketing opportunity of interest for the company.
· Lebara Australia
The marketing plan should include a minimum of 5 peer-reviewed academic journals and an additional minimum of 7 (seven) relevant references from business magazines, industry whitepapers, company reports, credible and reliable websites, online business news and information sources, and marketing textbooks to confirm the strength and quality of information and analysis. Please avoid unknown and un- reliable online websites as well as commentary and opinion from unknown and non-expert commentators and personal blogs. Although Wikipedia is a great source, students are advised not to refer or cite it because it is a reader-produced encyclopaedia with a probable lack of accuracy or completeness of entries on a lot of cases. When evaluating sources always consider why and how is it relevant to your analysis; why and how does it matter to your analysis; and how it can add value to your analysis.
This is a post-graduate unit. Therefore, demonstration of highly developed analytical skills in expression, presentation and writing is expected. Poorly constructed report with lack of clarity in meaning, referencing, weak arguments, grammar and formatting issues, etc. will lower the overall quality of the report.
Marketing plan template (BH6505)
Lebara Australia
In this report we need to write a marketing plan for Lebara Australia, suggesting a service that they should provide in market. The service is 5G services in the market. (this report should include a marketing plan for lebara Australia not a marketing plan of Lebara Australia)
1. Competitor Analysis
This part should be done according to the pictures given below:
Direct and indirect competitors
Competitors
· Telstra
· Optus
· Vodafone
2. Bibliography (Harvard referencing)
Word limit: 1000 words
YOUR ATTENTION IS DIRECTED
TO THE IMPORTANT
DISCLOSURES IN APPENDIX A.
Communications
February 14, 2013
Vince Valentini, CFA Ahab Abdou, CFA (Associate)
416 944 7012 416 983 4767
[email protected][email protected]
Thomson Reuters Corp.
(TRI-T, TRI-N) C$30.02
Another Transition Year in 2013
Investment Summary
We maintain our HOLD rating on Thomson Reuters (TRI-T) shares,
with our 12-month target .
1) The fund has recently underperformed its category benchmark due to cyclical downturns in mid-cap stocks it holds and certain stocks dragging performance. However, the fund manager believes current underperformance may be cyclical and recovery could follow as with past periods.
2) The fund's portfolio consists of many category-leading companies with strong long-term growth potential. While some sectors and stocks have faced short-term issues, the fund manager believes their quality and market positions provide long-term alpha potential.
3) The fund manager continues evaluating the portfolio based on their investment framework, exiting positions where warranted but also adding to cyclically downturn stocks with good long-term prospects trading at attractive valuations now
This document provides information about TD Ameritrade for its 2013 annual meeting of stockholders. It summarizes TD Ameritrade's performance in fiscal year 2012, including record net new assets and market fee-based revenue. It also outlines TD Ameritrade's strategy and priorities for 2013, which include maintaining organic growth, growing its fee-based revenue stream, and remaining disciplined on expenses while investing in the future. Key metrics from TD Ameritrade's first quarter of fiscal year 2013 are also provided, showing continued growth in key areas.
This document provides an introduction and overview of a project report on the fundamental analysis of the banking industry in India, with special reference to public sector banks. The report analyzes macroeconomic factors, assesses the performance of the banking industry, and uses financial analysis tools to evaluate and select high-performing banking companies over a five-year period from 2009-2013. The analysis focuses on metrics like net interest margin, credit-to-deposit ratio, non-performing asset ratio, earnings per share, and intrinsic value to compare company performance and make investment decisions.
Financial statement analysis is important for several reasons such as obtaining loans, evaluating investment opportunities, and assessing creditworthiness for suppliers. The key steps in analysis involve calculating ratios over several years from the income statement, balance sheet, cash flow statement, and shareholders' equity statement. Common ratios calculated include liquidity, leverage/debt, profitability, efficiency, and value ratios. Limitations of ratio analysis include subjectivity in interpretation, lack of comparability between companies, reliance on past financial data, and accounting differences across countries.
Zynex is a medical device company with two divisions: Zynex Medical focuses on pain treatment devices, and Zynex Monitoring Solutions is developing non-invasive cardiac monitors. The author believes Zynex is undervalued for three reasons: 1) its TENS devices have high margins and customer lock-in; 2) recent growth is due to acquiring customers from a competitor that closed; 3) approval of its blood monitor could be a major new product. However, risks include potential changes to insurance coverage and unproven management. The author's base case values Zynex at $4.60 per share, a 71% upside.
The document provides an overview and analysis of initial public offering (IPO) activity in the Australian mid-market in the second quarter of 2017. There were 29 IPOs this quarter raising $439 million total, making it the most active quarter in the past 5 years. The information technology and mining sectors saw the most IPOs. Transaction costs for IPOs decreased on average compared to previous periods. Overall mid-market IPO activity was higher than the previous quarter and year.
Ardian, a private equity firm, acquired Diana Group in 2007 and successfully exited the investment in 2013 by selling Diana Group to Symrise AG. Over the holding period, Ardian navigated Diana Group through the financial crisis by reshuffling management and providing financing to reinforce market positions. Diana Group's sales and EBITDA grew significantly through organic growth and acquisitions, almost doubling its enterprise value. The exit timing in 2013 was optimal, with favorable conditions for sales to strategic buyers. The sale price achieved a premium relative to peers and benchmarks. Overall, the investment in Diana Group was highly successful for Ardian, earning an A grade, though performance could have been higher relative to industry benchmarks.
The fund invests in IPO securities listed in Greater China, Singapore, or the US that derive revenue from Greater China or Singapore. Over the past 2 years, the fund achieved a return of 138.39%, outperforming its benchmark by 42.07%. The manager uses quantitative and qualitative criteria to determine investments with a focus on IPOs that offer growth potential.
1) Zhongmin Baihui Retail Group's stock price rallied over 270% in one year upon listing, but does not react to market forces or the company's financial performance, raising investor caution.
2) The company provides weak disclosures of key retail metrics and had a temporary revenue spike from an asset transfer with questionable terms.
3) The corporate structure involves a lease agreement that effectively pays the CEO, Deputy CEO and a director, questioning corporate governance.
1. This document analyzes Zhongmin Baihui Retail Group Ltd (ZMBH), a Chinese department store operator listed in Singapore, and advises caution in investing in the company.
2. Key issues highlighted include ZMBH's stock price performance that seems disconnected from fundamentals and ignores market swings, weak financial disclosures and erratic performance, and a questionable corporate structure involving related party transactions.
3. Additional research uncovered corporate governance deficiencies, and while recent positive media coverage aimed to portray ZMBH positively, some statements were found to be misleading or lend further evidence to suspicions about the company. Investors are advised to stay away due to the overvalued and potentially manipulated stock, along
HKEx Prolonged Suspension Status Report (Aug2015)asianextractor
The document summarizes the status of companies that have been suspended from trading on the stock exchange for three months or more. It provides an overview of the exchange's criteria for suspending and resuming trading, as well as a table that categorizes the long-suspended companies and outlines the key issues and developments in each case. The table lists seven companies that are undergoing the exchange's three-stage delisting procedure due to severe financial difficulties or minimal operations. It also lists one other company under regulatory investigation for alleged irregularities.
Dupré Analytics is shorting China Zhongwang, alleging it is the largest fraud ever uncovered in China. They claim Chairman Liu and his family have defrauded investors since 2009 by fabricating at least 62.5% of revenue since 2011 (HK$38.5 billion) and siphoning funds from a delayed facility project. Dupré alleges the Liu family has used secretly controlled trading companies and intermediaries to move tens of billions of dollars of aluminum abroad, racking up HK$36.5 billion in undisclosed borrowing recourseable to Zhongwang. Large stockpiles of aluminum in the U.S. and Mexico allegedly show Zhongwang's reported revenue is fraudulent.
China Fiber Optic, a fiber optic patch cord producer listed in Hong Kong, has fabricated its financial reports. A comparison of its main China subsidiary Sifang Telecom's regulatory filings with China Fiber's reports to shareholders found revenue was exaggerated by 4 to 10 times from 2008 to 2012. Sifang Telecom's 2012 revenue was only 25.1% and net profit only 7.4% of what China Fiber reported. Further evidence from customs data, sales contracts, and interviews confirms China Fiber's claims of exports and prices are false and it has committed outrageous and long-term financial fraud.
Sihuan (460 HK) Auditor Disclaimer of Opinionasianextractor
The document is Sihuan Pharmaceutical Holdings Group's announcement of its annual results for the year ended 31 December 2014. It summarizes that for 2014, the company's profit attributable to owners increased 30.1% to RMB1,671.3 million with revenue up 19.2% to RMB3,084.2 million. Basic earnings per share rose 30% to approximately RMB16.1 cents. A final cash dividend of RMB1.3 cents per share was recommended.
The document is an investigation report by an independent committee investigating accounting issues at Toshiba Corporation. It finds inappropriate accounting treatments that overstated profits across multiple business divisions, including power systems, semiconductors, PCs, and visual products. Key causes identified include strong pressure from top management to meet budgets and priorities of near-term profit over proper accounting. The report provides recommendations to reform governance, strengthen internal controls, and prevent recurrence.
China LNG Group is a Hong Kong-based company with a market capitalization of HKD 16.69 billion but minimal recurring revenue and an unproven business model in the liquefied natural gas industry. The research report identifies China LNG as being wildly overvalued compared to other energy companies based on price-to-book and price-to-sales ratios. It argues China LNG has no competitive advantages given its lack of experience, assets, proprietary technology, or meaningful operating business in the already crowded LNG market in China. The report recommends a strong sell on China LNG's stock and assigns a price target of HKD 0.08 per share.
China LNG Group is a Hong Kong-listed company with a market capitalization of HKD 16.7 billion but an underlying business that generates minimal revenue and profits. The author argues that China LNG's valuation is unjustifiably high given that its core lease financing business has generated only HKD 131,750 in revenue so far and its future plans are unproven. Much of China LNG's reported profits have come from non-recurring transactions such as the sale of bonds issued by a related party, which should not be considered ongoing sources of revenue. The author maintains China LNG should be valued closer to its book value like other energy companies.
China Due Diligence - Red Flags to Avoid Some of the Pitfallsasianextractor
The document discusses red flags and risks to avoid when conducting due diligence on potential investments in Chinese companies. It outlines several areas that thorough due diligence should examine, including ownership structures, financial records, inventory, suppliers/customers, and asset valuations. More sophisticated fraud risks include inflated revenues through round-tripping schemes, hidden related-party transactions, and disguised nominee ownership. Proper due diligence requires scrutinizing financials for unusual numbers, verifying documents and asset ownership, and being aware of fraud tactics that abuse personal networks in China.
China Cord Blood Corp (NYSE: CO) and Golden Meditech (801 HK)asianextractor
1. The document analyzes financial and operating data from China Cord Blood Corp and finds inconsistencies that raise doubts about the accuracy of the reported numbers.
2. It notes a sudden spike in revenue and profits per new subscriber in 2013 that coincided with a large increase in prepayments, as well as dramatic rises in deferred income as a percentage of revenue in subsequent years.
3. The operating data shows each new subscriber contributing significantly more to unearned storage fees and deferred income between 2012-2015 despite no reported change in storage fee policies. This suggests the financial and operating data do not match.
Mismatched regulatory regimes: How chinese reverse mergers and china media-...asianextractor
This document provides background on Chinese Reverse Mergers (CRMs) and examines the case of China MediaExpress Holdings, Inc., a CRM that collapsed amid fraud allegations. It discusses how CRMs became a popular way for Chinese companies to access U.S. capital markets through reverse mergers with shell companies already listed on exchanges. However, many CRMs quickly failed due to financial reporting problems and a lack of disclosure requirements. The China MediaExpress case is analyzed as an example. Regulatory loopholes in both Chinese and U.S. laws are explored that allowed CRMs like China MediaExpress to evade scrutiny and mislead American investors.
The document contains feedback from students praising their professor, Kee Koon Boon, for his outstanding teaching of the Accounting Fraud module. Students highlight that the professor is passionate, knowledgeable, and his lessons on detecting accounting fraud are some of the most useful and practical. They appreciate him sharing his insights and real-world experiences. Multiple students also thank the professor for not only teaching technical skills but also helping them develop values like perseverance, positivity, and a desire to do good.
REXlot (555 HK) by Anonymous Analytics - Betting on a Pipe Dreamasianextractor
REXLot Holdings is a Hong Kong-listed company that operates online and offline lottery businesses in China. However, an analysis of public documents finds that REXLot has significantly inflated its reported revenue and profits. For the online business, an analysis of disclosures by REXLot's joint venture partner and independent market data shows REXLot is overstating revenue by 2-3x. For the offline business, government tender documents indicate REXLot is overstating commission revenue. Accounting filings further suggest the offline business revenue is inflated by at least 2x. REXLot's reported cash balance and interest income are also inconsistent, suggesting cash is exaggerated. Dividends have been funded through convertible bond offerings
FMCN has fraudulently overstated the number of LCD screens in its network by approximately 50% and questions the viability of its core LCD business. Like Olympus, FMCN significantly overpays for acquisitions, writing down $1.1 billion of $1.6 billion in acquisitions, equal to one-third of its enterprise value. FMCN has claimed acquisitions it did not make, concerning where cash went. Insiders have profited over $1.7 billion from stock sales while using FMCN transactions to earn over $70 million at shareholders' expense. The problems uncovered likely represent ongoing issues, and recent deals indicate abuse of shareholders continues.
This announcement is from the board of directors of Mingyuan Medicare Development Company Limited regarding their failure to communicate with one of their executive directors, Mr. Zhao Chao, since the end of December 2014. The board has tried unsuccessfully to contact Mr. Zhao, who is responsible for overseeing the company's medical centers management division. However, the division continues to be run by experienced management and the chairman and CEO has taken over oversight of the division during Mr. Zhao's absence. The board considers Mr. Zhao's absence unlikely to materially affect the company's business. The board will remove Mr. Zhao from his position if he does not provide a reasonable explanation for his absence or demonstrate his ability and willingness
Mingyuan Medicare (233 HK): Delay in Audit of Cash asianextractor
This announcement states that Mingyuan Medicare Development Company will be delayed in publishing its audited annual results for 2014 and dispatching its annual report due to additional time needed by its auditors to complete procedures regarding the company's bank balance as of December 31, 2014. It acknowledges this will result in non-compliance with stock exchange rules regarding deadlines for annual results and reports. It also announces the postponement of its board meeting to approve the annual results and the suspension of trading of its stock until the results are released.
This announcement provides a positive profit alert for Mingyuan Medicare Development Company for the year ended 31 December 2014. According to preliminary assessments, the company is expected to report a small profit compared to a substantial loss in the previous year. This is primarily due to a gain from recovering previously written off receivables. The company is still finalizing its annual results, which are expected to be published by 31 March 2015. Shareholders are advised to exercise caution when dealing in company shares.
Rolta India: Rebuttal #2 by Glaucus Researchasianextractor
This document provides a rebuttal to responses from Rolta India regarding allegations that the company fabricated its reported capital expenditures. The rebuttal focuses on key issues from the original report, including Rolta's abysmal returns on capital investment, questions around its large spending on computer systems that are quickly depreciated and disposed of, and a lack of transparency around prototype expenditures. The rebuttal expresses skepticism around Rolta's explanations and argues the company has failed to adequately address the core issues raised regarding the legitimacy of its capital expenditures.
KALYAN CHART SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
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Efficient PHP Development Solutions for Dynamic Web ApplicationsHarwinder Singh
Unlock the full potential of your web projects with our expert PHP development solutions. From robust backend systems to dynamic front-end interfaces, we deliver scalable, secure, and high-performance applications tailored to your needs. Trust our skilled team to transform your ideas into reality with custom PHP programming, ensuring seamless functionality and a superior user experience.
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...Herman Kienhuis
Presentation by Herman Kienhuis (Curiosity VC) on developments in AI, the venture capital investment landscape and Curiosity VC's approach to investing, at the alumni event of Amsterdam Business School (University of Amsterdam) on June 13, 2024 in Amsterdam.
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AI Transformation Playbook: Thinking AI-First for Your BusinessArijit Dutta
I dive into how businesses can stay competitive by integrating AI into their core processes. From identifying the right approach to building collaborative teams and recognizing common pitfalls, this guide has got you covered. AI transformation is a journey, and this playbook is here to help you navigate it successfully.
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Cover Story - China's Investment Leader - Dr. Alyce SUmsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Discover the Beauty and Functionality of The Expert Remodeling Serviceobriengroupinc04
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Adani Group's Active Interest In Increasing Its Presence in the Cement Manufa...Adani case
Time and again, the business group has taken up new business ventures, each of which has allowed it to expand its horizons further and reach new heights. Even amidst the Adani CBI Investigation, the firm has always focused on improving its cement business.
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Call me 9040963354
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1. As of Market Close 04/23/2014
1.7 million shares
TWD 17.3 billion
TWD: 86.50
73.5 million
g. 30 days)Av
Mark
Price:
DailyVolume:
Recommendation:
et Cap:
Public Float:
(
|COMPANY:
Strong Sell
RESEARCH GROUP
GLAUCUS
格 勞 克 斯 研 究
Asia Plastic Recycling Holding Limited
INDUSTRY: Plastic Recycling
TWSE: 1337|
Auditor:
Price Target:
TWD: 0.00
Deloitte Taiwan
"A lie can travel halfway around the world while the truth is putting on its shoes.” - Mark Twain
THIS RESEARCH REPORT EXPRESSES OUR OPINIONS. Use Glaucus Research Group California, LLC’s research opinions at
your own risk. This is not investment advice nor should it be construed as such. You should do your own research and due diligence
before making any investment decisions with respect to the securities covered herein. We are short APR and therefore stand to realize
significant gains in the event that the price of APR’s stock declines. Please refer to our full disclaimer on page three of this report.
ASIA PLASTIC RECYCLING HOLDING LIMITED (“APR” or the “Company”) claims to be
the #1 producer of EVA (foam rubber) products in China. In this report, we present publicly
available tax and land records that, in our opinion, indicate that APR has made material
misrepresentations to Taiwan investors and regulators regarding its earnings and assets. We
believe, based on the independent evidence presented in this report, that APR’s actual earnings are
around 90% less than the figures reported in the Company’s Taiwan filings. Because of APR’s
significant indebtedness we put the value of APR’s equity at TWD 0.00 per share.
1. Overstated Capital Expenditures. Independent public land records and a government
website indicate that APR overstated its capital expenditures by at least RMB 422mm on the
2011-2013 expansion of its Fujian and Jiangsu facilities. In our opinion, this evidence
suggests that either insiders diverted the missing funds or that the Company’s capital
expenditures were artificially inflated to hide fake sales on the balance sheet.
a. Fujian Factory Land Acquisition Cost Overstated by 4x. APR claims to have spent
RMB 126 million in 2011 to acquire 137 mu of additional land for the expansion of the
Fujian facility. However, according to publicly available land records posted on
soudi.cn, APR purchased this land at auction from the Land and Resources Bureau of
Jinjiang for only RMB 31 million, which is 75% less than the RMB 126mm in
acquisition cost reported to Taiwan investors and regulators.
b. Total Fujian Expansion Project Cost Overstated by ~3x. APR claims to have spent a
total of RMB 600 million on the expansion of its Fujian factory between 2011 and 2013.
However, a government website states that APR invested a total of only RMB 212
million on the expansion of the factory, 65% less than the cost of RMB 600mm
reported to Taiwan investors and regulators.
c. Jiangsu Land Acquisition Cost Overstated by 2.5x. In 2012, APR reportedly acquired
150 mu of land for RMB 57.9mm (average of RMB 386,000 per mu) for the expansion of
its Jiangsu facility. But according to records from the Department of Land and Resources
of Jiangsu Province, which are available to any investor online (by clicking here), APR
only paid an average of RMB 163,000 per mu (a total of RMB 23.6mm) for the land
purchase, meaning that APR spent 59% less than the RMB 57.9mm reported to
Taiwan investors and regulators.
2. Government Tax Records Indicate Net Income Overstated by ~10x. The Jinjiang city
(Fujian province) government publishes an annual list, available to any investor online, which
ranks the top taxpaying businesses operating in Chendai county, Jinjiang city. APR, whose
headquarters, production base and only meaningful PRC operating subsidiary are based in
Chendai, reported to Taiwanese investors and regulators that it paid RMB 381mm in PRC
income taxes and (we estimate) RMB 302mm in VAT from 2010 through 2013. Yet
2. |COMPANY: Asia Plastic Recycling Holding Limited
INDUSTRY: Plastic Recycling
TWSE: 1337|
according to the Jinjiang government, APR only paid between RMB 28mm and RMB
80mm in total taxes from 2010 through 2013, which is 96% to 88% less than the amount
reported to Taiwanese investors and regulators during that period. This suggests that APR
has vastly exaggerated the scale and profitability of its business.
a. Tax Records Place APR Behind Purportedly Smaller Competitors. The same
Chendai county tax records show that APR paid roughly the same amount of taxes from
2010 through 2012 as two competitors producing EVA foam products in Fujian who
reported between 81% to 94% less revenue in 2012 than APR.
3. Lucrative Commodity Business Too Good to be True. APR collects scraps of recycled
materials (like discarded shoe soles) and converts them into sheets of EVA foam. This is a
low-tech process, and the end product is a commodity. Yet, unbelievably, APR reports the
same EBIT margins as Microsoft.
a. EBIT. APR’s reported EBIT margins averaged 33% from 2010 to 2012 vs. an average
of 7% for APR's private local competitors.
b. APR’s Average Selling Prices are Suspicious. APR claims to sell EVA foam products
for approximately the same prices as EVA foam products made with virgin (non-
recycled) raw materials. This is suspicious because APR’s EVA foam products are made
from recycled materials which cost 65%-80% less than virgin material. Foam made from
low-quality recycled materials sells for a substantial discount to foam made from virgin
materials.
c. Margins are Too Consistent. The other suspicious element of APR’s margins is that
they are remarkably consistent from year to year. For example, APR’s average selling
prices decreased by 27% in 2012 and its costs did not materially change (vs. 2011), yet its
gross margin increased from 38% to 40% that year.
d. Sales per Employee. APR's reported sales per employee of RMB 1.436 mm in 2012 is
~4x the average sales per employee reported by its private local competitors.
e. Suspicious Sales Growth. APR reported average sales growth of 19% between 2010
and 2012. SAIC filings show that its private local competitors grew sales at an average
of 0% over the same period, suggesting APR is artificially inflating its reported growth.
4. Serial Capital Raising With No Apparent Bona Fide Purpose. Despite a significant
capital infusion from a 2011 IPO, in 2012, APR issued follow-on equity, convertible bonds
and over TWD 1 billion in bank debt. Investors should not be fooled. Any dividends paid to
date appear to be financed by the large 2012 debt offerings.
5. Valuation. As of December 31, 2013, APR had approximately TWD 3.6 billion of onshore
(i.e. PRC) liabilities outstanding, including TWD 1.8 billion in debt and another TWD 1.8
billion in various trade payables due to unsecured onshore creditors.
In a liquidation scenario, the holders of onshore liabilities will take priority over offshore (i.e.
non-PRC) equity and debt holders. Because independent evidence suggests that the Company
has overstated its earnings by 10x and major capital expenditures by 3x, we doubt the
authenticity of its reported receivables, cash balance and fixed assets. Given the limited
offshore assets available for seizure (only a minimal amount of cash denominated in
USD/HKD/TWD as of 12/31/2013) and the difficulty recovering onshore assets (property and
equipment) under China’s byzantine judicial system, we put a price target on APR’s shares of
TWD 0.00.
3. Disclaimer
www.glaucusresearch.comAsia Plastic Recycling Holding Limited | TWSE: 1337
3
|
We are short sellers. We are biased. So are long investors. So is APR. So are the banks that raised money for the Company. If you are invested (either long or
short) in APR, so are you. Just because we are biased does not mean that we are wrong. We, like everyone else, are entitled to our opinions and to the right to
express such opinions in a public forum. We believe that the publication of our opinions and the underlying facts about the public companies we research is in
the public interest.
You are reading a short-biased opinion piece. Obviously, we will make money if the price of APR stock declines. This report and all statements contained
herein are the opinion of Glaucus Research Group California, LLC, and are not statements of fact. Our opinions are held in good faith, and we have based
them upon publicly available facts and evidence collected and analyzed, all of which we set out in our research report to support our opinions. We conducted
research and analysis based on public information in a manner that any person could have done if they had been interested in doing so. You can publicly
access any piece of evidence cited in this report or that we relied on to write this report. Think critically about our report and do your own homework before
making any investment decisions. We are prepared to support everything we say, if necessary, in a court of law.
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members, partners, affiliates, employees, and/or consultants) along with our clients and/or investors has a direct or indirect short position in the stock (and/or
options) of the company covered herein, and therefore stands to realize significant gains in the event that the price of APR’s stock declines. Use Glaucus
Research Group California, LLC’s research at your own risk. You should do your own research and due diligence before making any investment decision with
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4. INTRODUCTION
4
www.glaucusresearch.comAsia Plastic Recycling Holding Limited | TWSE: 1337|
ASIA PLASTIC RECYCLING HOLDING LIMITED (“APR” or the “Company”) is a Fujian-based
manufacturer that claims to be the #1 producer of EVA1
foam products in China. We believe that APR
has made numerous material misrepresentations to investors and the Taiwan Stock Exchange (“TWSE”),
in both its 2011 IPO prospectus and in subsequent financial statements, regarding the scale and
profitability of its business.
Investors do not need to perform our level of due diligence to be suspicious of APR, as even a simple
reading of the Company’s financial statements reveals numerous red flags. APR reports the same EBIT
margins (33%) from recycling foam rubber as Microsoft reports for a quasi-software monopoly. In
addition, APR’s reported revenues per employee are four times higher than its competitors.
It is also highly suspicious that APR is a serial capital raiser despite reportedly generating significant
amounts of cash from its operations. Even though APR received a significant capital infusion from a
2011 IPO, the Company issued follow-on equity, convertible bonds and over TWD 1 billion in bank debt
in 2012. Why would a Company that supposedly generates such healthy cash flows need to keep
returning to the capital markets to get more cash? Investors should not be fooled. Any dividends paid to
date appear to be financed by the large 2012 debt offerings.
The most convincing evidence comes from publicly available land and government investment records
which suggest that APR overstated major capital expenditures in Fujian and Jiangsu by around 3-4x
between 2011 and 2013. In addition, we believe that online PRC tax records from Jinjiang city, Chendai
county, where APR's only meaningful operating subsidiary is based, show that APR has overstated
reported earnings from 2010 through 2013 by around 10x.
Ultimately, we believe, based on the evidence presented in this report, that APR has materially overstated
the scale and profitability of its business to investors and regulators, and, in doing so, violated a number
of Taiwan's securities laws. Like the Asian stock market regulators in Hong Kong and Singapore, we
believe the TWSE will halt trading of APR’s shares pending a full investigation into the Company.
1
Ethylene-vinyl acetate (“EVA”) is a polymer that approaches elastomeric materials in softness and flexibility, yet can be
processed like other thermoplastics (wikipedia).
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OVERSTATED CAPITAL EXPENDITURES
During APR’s first three years as a public company (2011 through 2013), APR raised TWD 4.4 billion
from the capital markets (both equity and debt).
Source: Company Filings.
During this period, APR claims to have spent TWD 4.6 billion (~RMB 1 billion) (100% of the proceeds
raised) on capital expenditures, the vast majority of which was reportedly spent on the expansion of its
Fujian and Jiangsu factories.
APR claims in its public filings to have spent RMB 600 million in capital expenditures, between 2011
and 2013, on the expansion of its Jiangtou facility, located in city of Jinjiang, Fujian province (the “Fujian
Expansion Project”), which included RMB 126 million for the acquisition of land use rights.
Yet public infrastructure records indicate that APR only spent RMB 212mm (65% less than the
reported amount) on the Fujian Expansion Project, indicating that capital expenditures were overstated
by RMB 388mm. This suggests, in our opinion, either that insiders diverted the missing capital
expenditures or that the capital expenditures were inflated to cover for fabricated sales.
APR's Use of Capital Markets Cumulative
Figures are in TWD'000s 2011 2012 2013 2011-2013
Equity Raised 1,355,600 1,363,284 - 2,718,884
Bank Borrowings 1,113,437 (35,742) 1,077,695
Issue of Company Bond 600,000 - 600,000
Proceeds from Capital Markets 1,355,600 3,076,721 (35,742) 4,396,579
4.4 4.6
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Proceeds Raised Capital Expenditures
Selected APR Cash Flows (2011-2013)
(Figures are in TWD'billions)
TWSE: 1337
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1) Fujian Factory Land Acquisition Cost Overstated by ~4x
APR claims to have spent RMB 126 million in 2011 to acquire 137 mu of new land for the Fujian
Expansion Project.2
The following is an excerpt from the Company’s 2012 annual report.
However, according to land records posted on soudi.cn (translation: "landsearch.cn"), APR purchased this
land at auction from the Land and Resources Bureau of Jinjiang for only RMB 31 million, which is 75%
less than the land acquisition cost reported in APR’s Taiwan filings.
2
APR 2012 Annual Report, p. 2, 111 and 112.
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Source: click on this link.
Note that the area of the land purchase (137 mu) as reported on the website (shown above) is the exact
same size of the land that APR claimed to have purchased in its 2012 annual report. Rather than
spending RMB 126mm on the land rights, the public land records suggest that APR paid only RMB
31mm, 75% less than the reported figure. This is compelling evidence suggesting that APR massively
exaggerated the amount it spent on land acquisition in connection with the Fujian Expansion Project.
2) Total Fujian Expansion Project Cost Overstated by ~3x
APR claims to have invested a total of RMB 600 million in connection with the Fujian Expansion Project
between 2011 and 2013, reportedly increasing the interior factory space by approximately 120,000 m.2
The following slides, taken from APR’s 2012 and 2014 management presentations, respectively, outline
the expansion and the amount of the investment in the project.
TWSE: 1337
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Source: Q1 2012 Company presentation, p 27.
Source: February 2014 Company presentation, p 15.
APR's February 2014 management presentation (shown above) confirms that APR supposedly invested a
total of RMB 600 million on the Fujian Expansion Project. However, official records available on the
Jinjiang government website, which any investor can access online (and which we have excerpted below),
show that APR’s "total investment" for the Fujian Expansion Project (~110,000 m2
) was only RMB 212
mm, which is 65% less than the capital investment amount reported to Taiwan investors and regulators.
TWSE: 1337
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Source: click on this link.
The records available on the Jinjiang government website show that APR only invested a total of RMB
212mm on the Fujian Expansion Project, 65% less than the 600mm reported in APR’s Taiwan filings.
This evidence suggests that APR overstated its capital expenditures by RMB 388mm.
Why would a company deliberately overstate capital expenditures? In our experience, there are two
reasons. Either the missing expenditures were secretly transferred to insiders or capital expenditures were
overstated in order to hide proceeds from fake sales on the balance sheet.
TWSE: 1337
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3) Jiangsu Land Acquisition Cost Overstated by ~2.5x
Publicly available records of land transfers suggest that APR also overstated the land acquisition cost with
respect to the expansion of its facility in the city of Jurong in Jiangsu province (the “Jiangsu Expansion
Project”). In APR’s 2012 annual report, the Company announced that it had acquired "about 150 mu" of
land within the Jurong Economic Development Zone for RMB 57.9mm (average of RMB 386,000 per
mu) for the Jiangsu Expansion Project.
Source: APR 2012 Annual Report, p. 112
But according to records from the Department of Land and Resources of Jiangsu Province, which are
available to any investor online (by clicking here), APR only paid RMB23.6mm (an average of RMB
163,000 per mu) for the 2011 Jurong land purchase, indicating that APR overstated its land acquisition
costs for the Jiangsu Expansion Project by almost 2.5x.
Source: click on this link.
TWSE: 1337
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The following table sets forth, in detail, the land records available on the Jiangsu government website
documenting the price paid by APR for the land acquired in connection with the Jiangsu Expansion
Project.
Land record links: 3211832012CR0244; 3211832013CR0192; 3211832013CR0191; 3211832013CR0193;
3211832013CR0268; 3211832013CR0269; 3211832013CR0313; 3211832013CR0311; 3211832013CR0312.
The independent and publicly available records from the Department of Land and Resources of
Jiangsu province show, in our opinion, that APR overstated the cost of acquiring the ~150 mu of land for
the Jiangsu Expansion Project by 2.5x. We believe that this is further independent evidence that APR has
been overstating the amount of its capital expenditures since going public.
Figures are in RMB
Buyer City Location Purchase Record
Area
Acquired
(Hectare)
Area
Acquired
(Mu)
Transaction
Price (RMB)
Price Per
Mu
三斯达(江
苏)环保科
技有限公司
句容市 开发区寨里社区 3211832012CR0244 1.080 16.2 1,950,000 120,359
三斯达(江
苏)环保科
技有限公司
句容市
句容开发区文昌
西路南侧,致
远路西侧局部地
块B
3211832013CR0192 1.213 18.2 3,060,000 168,247
三斯达(江
苏)环保科
技有限公司
句容市
江苏省句容开发
区寨里社区
3211832013CR0191 0.433 6.5 1,100,000 169,244
三斯达(江
苏)环保科
技有限公司
句容市
句容开发区文昌
西路南侧,致
远路西侧局部地
块C
3211832013CR0193 0.474 7.1 1,200,000 168,955
三斯达(江
苏)环保科
技有限公司
句容市 开发区寨里社区 3211832013CR0268 5.476 82.1 13,800,000 168,021
三斯达(江
苏)环保科
技有限公司
句容市 开发区寨里社区 3211832013CR0269 0.033 0.5 85,000 171,198
三斯达(江
苏)环保科
技有限公司
句容市 开发区寨里村 3211832013CR0313 0.814 12.2 2,055,000 168,243
三斯达(江
苏)环保科
技有限公司
句容市 开发区寨里村 3211832013CR0311 0.083 1.2 210,000 168,675
三斯达(江
苏)环保科
技有限公司
句容市 开发区寨里村 3211832013CR0312 0.073 1.1 185,000 169,881
Source: http://mail.landjs.com Total 145.2 23,645,000 162,880
Note: 1 hectare = 15 Mu
Jiangsu Land Acquisition Cost Analysis
TWSE: 1337
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TAX RECORDS
Online tax records published on an official PRC government website suggest that the Company is paying
far less tax than it claims in its public filings. According to Company filings, APR's headquarters,
production facilities, and only meaningful PRC subsidiary are located in the Chendai County of Jinjiang
City, Fujian Province (in China, counties are smaller than cities).
APR's corporate filings disclose three subsidiaries, Sansd (Fujian) Plastic Co., Ltd. ("Sansd Fujian"),
Sansd (Jiangsu) Environmental Technology Co., Ltd. ("Sansd Jiangsu"), and Sansda (Hong Kong)
Trading Co. Ltd. ("Sansda HK").
Source: Company 2012 Annual Report.
According to APR, of the three operating subsidiaries above, only Sansd Fujian earns any meaningful
operating income, and therefore would be the only entity to pay any meaningful income taxes.
APR admits in its public filings that it does not pay taxes in Hong Kong. Its only significant connection
to Taiwan is that it has listed its shares on the exchange. And since its only other subsidiary, Sansd
Jiangsu, had no operating income in 2011 or 2012, we can comfortably infer that Sansd Fujian is the
Company’s only meaningful tax-paying entity.
APR Subsidiaries
Figures are in TWD'000s 2011 2012
Total Total Operating Total Total Operating
Assets Liabilities Revenue Profit Assets Liabilities Revenue Profit
Sansda Holding Limited (BVI) 4,553,782 20 - - 8,081,066 20 - -
Sansda (Hong Kong) Limited 4,553,806 36 - - 8,081,089 34 - -
Sansd Fujian 5,127,701 881,973 5,151,257 1,688,389 6,704,635 894,049 5,884,829 2,107,223
Sansd Jiangsu 457,976 150,563 - (3,854) 1,040,326 167,629 - (14,247)
Sansda (Hong Kong) Trading Ltd. - - - - 874,539 15 132,980 4,501
Source: Company Public Filings.
TWSE: 1337
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SAIC filings, excerpted below, show that Sansd Fujian is registered to an address within Chendai county,
Fujian Province, and that’s its production plant is also located in Chendai county.
Source: Company 2012 Annual Report, page 2 of PDF
Source: Company IPO Prospectus, pages 5 and 75 of PDF
TWSE: 1337
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In recent years, the Jinjiang city government (http://www.jinjiang.gov.cn/) has recognized the top tax
paying companies in Chendai county on a list published on the government website. As shown below, the
government lists break out the top tax paying businesses into various tiers based on the amount of taxes
paid. For example, the following announcement, available on the government’s website, recognizes the
88 Chendai county businesses that paid over RMB 2mm in PRC taxes in 2010 (including income taxes
and VAT).
If APR's reported financials are true, Sansd Fujian should be on the Tier 2 list in 2010 (i.e., a business that
paid between RMB 100mm and RMB 600mm in tax), because it reported paying RMB 74mm in income
taxes and (we estimate) it paid RMB 58.1mm in VAT (reported gross profit *17%), for a total of RMB
132 mm in reported taxes paid in 2010.
Yet Sansd Fujian actually appears on the Tier 7 list, indicating that APR's only meaningful PRC operating
subsidiary paid between RMB 8mm and 10mm in 2010, which is between 6% and 8% of reported taxes
paid.
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Source: click on this link.
A similar pattern emerges in 2011, 2012 and 2013.3
The following chart sets out the tax tiers from 2010
through 2013 for the top taxpaying businesses according to the Jinjiang government. In blue we have
highlighted the tier in which Sansd Fujian should appear based on the income taxes it reported paying in
its public filings and its estimated VAT payments. In red, we have highlighted the tier in which Sansd
Fujian actually appears on the government’s tax lists.
3
For reference purposes, hardcopies of the lists of major taxpayers for 2010, 2011, 2012, and 2013 are included in their entirety in
Appendix I.
TWSE: 1337
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Jinjiang City Tax List Links: 2010; 2011; 2012; 2013.
Whereas Sansd Fujian should appear in Tier 3 in 2011 and 2012, Sansd Fujian actually appears on the
Jinjiang city tax list on Tier 7 (between RMB 10 mm and RMB 20 mm in taxes paid) in 2011, and in Tier
10 (between RMB 10mm and RMB 20mm in taxes paid) in 2012. Notably, Sansd Fujian does not even
appear on the government’s 2013 list of top tax payers, even though, according to its Q4 2013
Taiwanese filing, it paid over RMB 187.7mm in taxes that year.
The government tax records indicate that, contrary to the income statements in its Prospectus and
subsequent annual reports, that APR's net income was actually between 4% and 12% of the figures
reported to Taiwanese investors between 2010 and 2013.
Figures are in RMB'million 2010 2011 2012 2013
Tier 1 600<X 600<X 500<X 1,000<X
Tier 2 100<X≤600 200<X≤600 300<X≤500 500<X≤800
Tier 3 50<X≤100 100<X≤200 200<X≤300 300<X≤500
Tier 4 30<X≤50 50<X≤100 100<X≤200 100<X≤300
Tier 5 20<X≤30 30<X≤50 60<X≤100 50<X≤100
Tier 6 10<X≤20 20<X≤30 50<X≤60 30<X≤50
Tier 7 8<X≤10 10<X≤20 40<X≤50 -
Tier 8 5<X≤8 8<X≤10 30<X≤40 -
Tier 9 3<X≤5 5<X≤8 20<X≤30 -
Tier 10 2<X≤3 3<X≤5 10<X≤20 -
Tier 11 - 2<X≤3 8<X≤10 -
Tier 12 - - 5<X≤8 -
Tier 13 - - 3<X≤5 -
Tier 14 - - 2<X≤3 -
Does not appear
APR Should Appear
APR Actually Appears
Chendai County (Jinjiang City) Tax Lists
Cumulative
Figures are in RMB'million 2010 2011 2012 2013 2010-2013
Reported Income Tax Paid 74.1 88.2 114.1 104.6 381.0
Est VAT Taxes Paid (17% of Reported Gross Profit) 58.1 73.3 87.6 83.1 302.2
Total APR Taxes Paid (based on Taiwan filings) 132.3 161.5 201.7 187.7 683.2
Government Tax Level
Implied (based on Taiwan filings) Tier 2 Tier 3 Tier 3 Tier 4
Actual Tier 7 Tier 7 Tier 10
Does Not
Appear
Actual Taxes Paid
Min 8.0 10.0 10.0 0.0 28.0
Max 10.0 20.0 20.0 30.0 80.0
Implied Actual Net Income as a % of Reported
Min 6% 6% 5% 0% 4%
Max 8% 12% 10% 16% 12%
Sources: Company filings; tax records from Chendai County for 2010-2012, Jinjiang City for 2013.
APR PRC Taxes - Reported vs. Actual
TWSE: 1337
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Put simply, the Jinjiang government’s tax lists indicate that APR is paying far less in taxes than it claims
in its public filings, which suggests that the Company’s revenues and profits are significantly smaller than
the figures reported in APR’s financial statements.
1) Tax Records Place APR Behind Purportedly Smaller Competitors
Jinjiang city tax records also show that Sansd Fujian paid roughly the same amount of taxes as two
competitors producing EVA foam products in Fujian who reported at least 75% less in revenues than
APR.
If APR’s reported financials are true, then Sansd Fujian, the Company’s only meaningful operating and
taxpaying entity, should pay far more taxes in than two local competitors, Maotai (Fujian) Soles
(Chinese:茂泰(福建)鞋材有限公司) (“Maotai”) and Jinjiang Taiya Shoes Development (Chinese:
晋江市泰亚鞋业发展有限公司) (“Taiya”), a wholly-owned subsidiary of Taiya Shoes (002517 CH),
both of whom produce and sell EVA foam products in the same city:4
In 2012, Sansd Fujian reported 15 times more revenue than Taiya and 5 times more revenue than
Maotai from selling the same EVA foam products that all three companies manufacture in the same city.
Moreover, APR claims to earn higher margins on its sales than its competitors. Therefore, APR’s
subsidiary should pay significantly more in taxes than its purportedly much smaller local competitors.
Yet, Sansd Fujian appears in the same tax-paying bracket on the Jinjiang City government taxpayer lists
as Maotai from 2010-2012 and in the same bracket as Taiya in 2010 and 2012. Below are excerpts of the
taxpayer lists and links to the government website indicating that Sansd Fujian is paying roughly the same
amount in taxes from 2010-2012 as competitors who were reporting far less in revenue.
2010 Jinjiang City Tax Payer List
Source: http://app.jinjiang.gov.cn/gkxxw/dwgk/newstext.asp?id=8749
4
http://www.jjgkw.com/gkxxw/dwgk/newstext.asp?id=8749
APR PRC Taxes - Competitor Comparison
Figures are in RMB'million Reported 2012 Jinjiang City Tax Tier
Revenues Taxes 2010 2011 2012
Sansd Fujian 1,284 201 Tier 7 Tier 7 Tier 10
Maotai (Fujian)* ~250 ~10 Tier 7 Tier 7 Tier 10
Jinjiang Taiya 83† 12** Tier 7 Tier 8 Tier 10
*Figures obtained from: http://www.maotaigroup.com/about-us.aspx.
**Glaucus estimate based on Taiya Shoes public filings.
† Source: Taiya Shoes 2012 Annual Report, page 23.
TWSE: 1337
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2011 Jinjiang City Tax Payer List
Source: http://app.jinjiang.gov.cn/gkxxw/dwgk/newstext.asp?id=17548
2012 Jinjiang City Tax Payer List
Source: http://app.jinjiang.gov.cn/gkxxw/dwgk/newstext.asp?id=33846
According to the government tax lists, Sansd Fujian pays roughly the same amount of tax as Maotai and
Taiya, each of whom reports 81% and 94% less in revenue than Sansd Fujian, respectively. The
implication of these tax records could not be clearer: that Sansd Fujian’s actual earnings are a fraction of
the reported figures.
TWSE: 1337
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LUCRATIVE COMMODITY BUSINESS TOO GOOD TO BE TRUE
A common denominator of companies that have collapsed under suspicion of fraud is that their reported
financial performance appears too good to be true. APR is no different.
1) EBIT Margins
APR’s reported EBIT margins from 2010 through 2012 (~33%) are so far superior to its local competitors
that it simply defies credibility. APR collects scraps of recycled foam (like discarded shoe soles) and
converts them into sheets of foam rubber. It is a low-tech process where not only the end product is a
commodity, but so are 90% of the inputs and raw materials. Investors should therefore not expect
significant EBIT margin deviation from firms producing the same commodity and operating in the same
or similar geographic area.
Sources: Company Filings; competitor SAIC Filings.
Compared to other EVA foam producers operating in the same area, APR’s reported financial
performance is simply incredible. APR reported an average EBIT margin of 33% from 2010-2012,
compared to its competitors who reported an average EBIT margin of 7% during the same period. To put
it into context, APR reports the same EBIT margins as Microsoft.
2) APR’s Average Selling Prices Are Suspicious
How does APR explain such high margins in a commoditized and hyper-competitive business? APR
claims to sell EVA foam products for an average sales price (“ASP”) of RMB 3,500-4,000 per cubic
0%
5%
10%
15%
20%
25%
30%
35%
2010 2011 2012
APR
Quanzhou
Sansheng
Shantou
Jingitequ
Dongguan
Chengxing
Comps Average
(ex-APR)
Reported EBIT Margin - APR vs. Comps
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meter of EVA foam, which is approximately the same price as EVA foam products made with virgin
(non-recycled) raw materials.
This appears suspicious, because according to experts with knowledge of the EVA foam recycling
business, the price of EVA foam products is driven by the quality of the raw materials used in the
manufacturing process. Producers who purchase virgin EVA foam from suppliers should be able to
manufacture a higher quality product and charge a higher price.
But APR claims to purchase recycled scraps from its suppliers at a cost that is 65 to 80% lower than the
cost of virgin (i.e. non-recycled) EVA foam.5
In its Q1 2012 management presentation, APR states that 66.9% of the raw materials used in 2011
consisted of cheap recycled materials.6
If APR uses cheap recycled raw materials, how does it charge the
same ASP as manufacturers who use virgin raw materials?
3) Suspiciously Consistent Margins
The other suspicious element of APR’s margins is that they are remarkably consistent from year to
year. This consistency of performance, as shown in the slide below from the Company’s 2014
management presentation, is especially suspicious given that APR’s average selling prices decreased by
27% in 2012 and its costs did not materially change (vs. 2011), yet its gross margin increased from
38% to 40% that year.7
2014 APR Management Presentation, p. 25
It is a significant red flag, in our opinion, that APR’s gross margins can increase in a year when its ASPs
declined 27%.
5
2014 APR Management Presentation, p. 8.
6
2014 APR Management Presentation, p. 22.
7
2012 APR Annual Report, p. 72.
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4) Sales per Employee
APR also claimed to generate RMB 1.436 million of revenue per employee in 2012, a worker
productivity rate that is ~4x the revenue generated per employee by its closest competitors.
Source: APR Company Filings; Competitor sales from competitor SAIC filings; competitor employee count
from recorded phone calls with APR competitors. SAIC filings for APR's other named PRC private
competitors were not available.
In our experience, when management teams exaggerate sales and growth numbers, they often forget to
give a commensurate boost to other operational metrics such as employee headcount. Thus, productivity
ratios and other efficiency ratios that significantly deviate from the industry standard are often red flags
when accompanied by suspiciously amazing financial performance.
1,436
277
392
462
377
0
200
400
600
800
1,000
1,200
1,400
1,600
2012
APR
Quanzhou Sansheng
Shantou Jingitequ
Dongguan
Chengxing
Comps Average
(ex-APR)
Revenueper Employee(RMB in 000s)
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5) Suspicious Sales Growth
APR’s reported average sales growth of 19% between 2010 and 2012 is well in excess of the 0% average
growth for its private local competitors during the same period.
This is a significant red flag because APR is operating in a mature and commoditized market, making it
highly unlikely it would be able to steal market share from competitors, especially given, as APR admits,
that the Company sells the products made from low-quality recycled materials for the same high
prices as competitors who make EVA foam products with virgin materials.
-10%
-5%
0%
5%
10%
15%
20%
25%
2011 2012
APR
Comps
Reported Sales Growth - APR vs. Comps†
† Average Sales growth for 3 private local APR competitors (named in APR's
IPO Prospectus) for which SAIC filings were available.
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SERIAL CAPITAL RAISER
APR is a serial capital raiser, having tapped the capital markets for TWD 4.4 billion during the last 3
years. In August 2011, APR raised TWD 1.4 billion in an IPO to fund new plant construction and
working capital. Yet despite this fresh influx of cash, one year late the Company made a TWD 1.4 billion
secondary offering, issued TWD 0.6 billion in high yield bonds and incurred TWD 1.1 billion in bank
indebtedness.
Investors should not be fooled by dividends paid in 2012 and 2013, as any dividends paid to date appear
to be financed by the large 2012 debt offerings. The remaining TWD 3.3 billion in proceeds raised net of
dividends appear to have already been spent on capital expenditure projects of dubious utility.
Source: Company Filings.
Given the significant amount of evidence indicating that its earnings are overstated by up to 10x,
investors should certainly fear that funds raised from the capital markets may be siphoned to insiders
through capital expenditures.
APR's Use of Capital Markets Cumulative
Figures are in TWD'000s 2011 2012 2013 2011-2013
Equity Raised 1,355,600 1,363,284 - 2,718,884
Bank Borrowings 1,113,437 (35,742) 1,077,695
Issue of Company Bond 600,000 - 600,000
Proceeds from Capital Markets 1,355,600 3,076,721 (35,742) 4,396,579
Less: Dividends Paid (485,656) (631,051) (1,116,707)
Proceeds Raised (net of dividends) 1,355,600 2,591,065 (666,793) 3,279,872
Source: Company Filings.
3.3
4.6
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Proceeds Raised (net of dividends) Capital Expenditures
Selected APR Cash Flows (2011-2013)
TWSE: 1337
25. 25
www.glaucusresearch.comAsia Plastic Recycling Holding Limited ||TWSE: 1337
VALUATION
As of December 31, 2013, APR had approximately TWD 3.6 billion of onshore liabilities outstanding,
including TWD 1.8 billion in debt and another TWD 1.8 billion in various trade payables due to
unsecured onshore creditors.
In a liquidation scenario, the holders of onshore liabilities will take priority over offshore (i.e. non-PRC)
equity and debt holders. Because independent evidence suggests that the Company has overstated its
earnings by 10x and major capital expenditures by at least 3x, we doubt the authenticity of its reported
receivables, cash balance and fixed assets. Given the limited offshore assets available for seizure (only a
minimal amount of cash denominated in USD/HKD/TWD as of 12/31/2013) and the difficulty recovering
onshore assets (property and equipment) under China’s byzantine judicial system, we put a price target on
APR’s shares of TWD 0.00.