LED International's nomad and chairman resign as accounts delayed again
Wed, 20th Jul 2016 13:31
(ShareCast News) - Shares in LED International, the Chinese provider of energy saving specialist, have been suspended for seven months and could be cancelled from AIM within a month after nominated adviser Allenby Capital quit as the company continued to delay reporting another set of accounts.
Adding to the worries for investors, LED chairman Stephen Weatherseed, a former senior partner and national head of audit services at Grant Thornton in London, where he advised dozens of AIM companies, has also resigned with immediate effect.
Weatherseed, who is currently managing director of accountant Mazars in Hong Kong, was appointed in 2012.
Allenby has been the company's nomad and broker since December 2010.
Having only reported its annual accounts for the year to June 2015 last month, six months late, LED's numbers for the six months to 31 December should have been posted by the end of March.
LED's shares were suspended on 22 December due to the delay in publishing its final result, and have not resumed trading due to the delay in putting out its half-year figures.
The LED screen manufacturer's shares are currently suspended due to it failing to publish its results for the year ended June 30, 2015, before the end of that year. It said this was because of "a number of issues out of control of the board".
LED International said its pretax loss in the year widened to HKD31.6 million from HKD8.5 million the year before, as revenue fell to HKD7,000 from HKD33,000.
It said a decrease in operating revenue was mainly brought about by "the set off of the inception of the first leasing finance contract with Siyuan and provision for impairment against the leasing contract receivable".
The company will publish its results for the first half of the current year during the first half of July.
Indeed it is masking something .
It`s a long story .
One should take a fresh look at trading price since the heady days of 3/8p when we all thought this Co was going bottoms up ,investors took a large chunk at circa 54p in july 2014 .
Since then trading has been light and the share price very erratic , to put it mildly.
Remember we were promised £5 million profit per annum and so far the BOD have been pretty adept at hitting the spot .Since the change to a Rice/ Lighting company .Then again we are a China Co which is a huge risk .
Not a share for those with a pacemaker .
CRF under coordination from International Finance Corporation (IFC) had led a group of 10 companies to Guangzhou, Shenzhen, and Hong Kong from 7-12 June 2015 for a market mission. The group had visited some supermarkets, wholesale stores, and some rice importers/traders in order to learn the possible rice market in China. The group has learnt opportunities and challenges for Cambodian rice in China market, which are listed below: ⦁ Opportunities 1. Fragrant Rice is popular in the Chinese market; therefore, it is good for Cambodia as we are one among the two main fragrant rice producers. The group also get to know in general that the fragrant rice is more potential for the market if it is a new crop with well-polished. 2. It will be good if Cambodia advertises its own fragrant rice well to the end consumers. 3. The rice traders and importers are willing to support Cambodian rice due to a very good quality. ⦁ Challenges: 1. Cambodian rice quality and quantity are not yet well consistent and stable. 2. The freight cost is high and transportation takes longer time comparing to Thailand and Vietnam. 3. The end consumers do not know Cambodian rice. 4. Payment term preferred by Chinese buyers might not satisfy Cambodian exporters (60 days DP) 5. Do not rely that much on certificates but on their own impression and organoleptic testing of the goods received comparing to the sample Although the price is one of the main challenges, branding Cambodian rice to get a clear positioning at the market will be helpful. ⦁ The below were the companies of importers/traders that the group has visited: 1. Guangzhou Kinway Trading Co., Ltd 2. Sweet Fa Yan Industry Limited Company of Guangdong Province 3. GuangDong Sunny Trade Company Limited 4. Humen Food Company Limited 5. Dongguan YihaiKerry Oils, Grains & Foodstuffs Industries Co., Ltd 6. Guangzhou Rich Rice Trading Co., Ltd 7. Shenzhen Lianyimiye Limited 8. Shenzhen Leguan Imports and Exports Co., Ltd 9. Shenzhen Ruihetai Industry Co., Ltd 10. Shenzhen Thai Fragrant Rice Co., Ltd 11. Lui Hing Hop Co., Ltd 12. Siu Fung Nin Hing Kee Co., Ltd 13. The Rice Merchants Association of HK Ltd 14. LS Rice (HK) Limited - See more at: http://www.crf.org.kh/?page=api_location_detail&menu1=593&menu2=&menu3=&menu4=&menu5=&id=922&lg=en#sthash.74JKVIjM.dpuf
And up over 50% , interesting market mainpulating going on.
One can expect smaller rises/ falls from here , until the really good news hits the front page .
Ruhetsai makes the expected £7 million net profit . The £3.50 is reasonably likely .
Proposed acquisition of Shenzhen Ruihetai Industry Co. Limited
On 22 December 2014, the Company entered into a conditional agreement under which it, or a nominated member of its Group, will acquire the majority of the issued share capital of Shenzhen Ruihetai Industry Co. Limited ("RHT") (the "Acquisition") from Ms. Li Sai Ying and Mr. Lin Zhong (together, the "Vendors") at a maximum consideration of RMB11,259,903 (approximately £1,136,000) (the "Consideration"). The exact shareholding of RHT after the Acquisition is to be determined and is subject to the local laws and regulations governing foreign investments in PRC companies.
The Consideration is to be satisfied by the issue of up to 334,200 new ordinary shares in the Company at HKD12.49806 per share and the issue of a three year, non-interest bearing convertible loan note in the amount of up to HKD9,746,009. The loan notes are convertible into ordinary shares in the Company at a price of HK$12.49806. The price per share represents the closing mid-price of 102 pence on 19 December 2014.
£750,000 + £1,100,000 per 334200 shares OR 28 x 1,850,000 .
New Valuation MCAP of £51,800,000 .
Current MCAP £10,000,000
Thus we can assume after discount £4 per share .
Good news for current holders indeed .
Silly me ,
The Consideration is to be satisfied by the issue of up to 334,200 new ordinary shares in the Company (the "Shares") at HKD12.49806 per share and the issue of a three year, non-interest bearing convertible loan note (the "Loan Notes") in the amount of up to HKD9,746,009. The Loan notes are convertible into ordinary shares in LED at a price of HK$12.49806. The price per Share represents the closing mid-price of 102 pence on 19 December 2014.
Valued by company at £102 at present for cash equivalent .
Leads one to believe that we are now worth £2.04 per share
One feels more deals are in the pipeline.
Keep up the good work our favourite Wing man .
Chinese companies alltogether control nearly 35% of LED market and the trend of their rising share continuing. This clearly tells China's LED factories are running full capacity. Chinese factories producing large volumes of LEDs at cheaper prices. Some of the companies have a production capacity of 500,000 pieces per month.
Veeco, a semiconductor manufacturing equipment provider for production of compound semiconductor based LEDs, flexible OLEDs, solar cells, RF/ wireless IC chips, has reported a revenue of US$90.8 Million in its 1st Quarter 2014 compared to US$73.2 million in its previous quarter, a sequnetial growth of 24%. 75% of its revenues comes from LED and solar.
John R. Peeler, Chairman and Chief Executive Officer said After a long downturn in our MOCVD business, LED fab utilization rates have improved to high levels at most key accounts and LED adoption is happening faster than many had expected. Our customers are also reporting better market demand for LED backlighting products. It is encouraging to see that our leading customers are beginning to place orders for capacity expansions. We currently anticipate that Veecos second quarter 2014 orders will be similar to or better than first quarter orders. Yet, the timing and magnitude of key customer expansions could cause MOCVD orders to be lumpy and somewhat unpredictable on a quarterly basis, and we lack the visibility to see into the second half of the year. We continue to invest in MOCVD product and technology development to further improve our customers cost of ownership and manufacturing capability.
In Taiwan the two leading vendors are Everlight and Epistar. There is not much difference between revenue earnings of these two companies, however Everlight leads.
Both these companies are expecting a double-digit growth in 2014 and 15. Taiwan makes maximum number of notebook computers, that is the big market for these two manufacturers in Taiwan.
South Korean leading LED manufacturer Samsung uses much of its production for its own products such as televisions notebook computers, tablets and smart phones. Samsung also aggressively marketing high efficacy package LEDs for lighting applications. Though no exact revenue figures available from Samsung, we estimate it on the list of top four, mostly in the third of fourth position, with the revenue growth of around 10 to 20%.
Among the Chinese LED lamp supplier, MLS Electronics shines brighter and is the star performer even globally, MLS makes LED Downlight, LED Ceiling, LED Panel Light, LED Candle Light, LED Bulbs and package LEDs. MLS up its production capacity from 3 million a month to 30 million a month. MLS is said to be maintaining high double digit growth rate since it started in 1997. MLS is said to have 10,000 production line workers.
But the story of other Chinese LED makers is not that shining, many companies are under performing with high chances of closing down. Chinese Government provides funds for LED manufacturers in buying vapour deposition equipment. However many companies not effectively producing otherwise under-utilizing MOCVD equipments. Irrespective of few companies failure, China LED industry on whole benefitted from Govt support.
Even in the lumens/watt rating, Chinese companies such as MLS are fast catching up with the top tier vendors. The story of LED bulbs is going to be much like mobile phones. What leading LED bulb brands such as Philips may adopt is; sourcing packaged LEDs from China.
If you look at the some of the disruptive technologies, organic LED is one of that, but when it comes to reliability and efficacy, still it is a long way for organic LED to beat compound semiconductor LEDs. Silicon-based LEDs which are supposed to be low-cost are also seen as another disruptive technology, but experts are saying it will take another five years before it becomes popular. The trend now is all about cheaper manufacturing.
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.