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Yeah, and what? these artists have already made millions disappear under the noses of HK market, we had a nailed on dividend that has vanished into thin air, these guys are clever and will not bat a eyelid in taking all our cash.
Surely if they engineer this to actually leave the market and take our money they would be breaking the law
I’m thinking this bunch of shysters are going to royally screw all pi’s over, sorry to say this but everything they to do seems contrived?
Yes i also spotted this. One thought is they booked revenue early but loaded all costs into final 6 months. Perhaps they do this normally but the drop in revenue exposed this. If so you would think this would not occur in next interims as revenue is down so any increase in revenue could see rise in profit in the same way but im reverse. Not sure if its true as normally accounting does not really allow this. If all extra costs were for hydrogen they should certainly explain it to be the case. it looks we are on track for return and while i cant see it being the stellar return if they can prepare the ground better they might make some progress but its certainly an anti climax given so much else. also we need to know if the delayed projects are now starting as that was not explained well in reports, although profit warning communication was more saying delay. So frustrating as ethanol according to reports is a massive demand but listening to Cnel its not the case. sadly they are in PRC and not in India or elsewhere that has high growth in Ethanol production so goes to prove exactly how that India PR money was. The plot seriously thickens and i still feel i dont quite know what their strategy is and what is happening to get projects moving and looking at their order book to move projects forward that are ready to go.
It seems the hydrogen pilot plant is ready for construction materials ordered plans drawn
A bit of a positive
Maybe the BoD expected to be back on HKex sooner than was possible and made the interims look better to offload shares onto the market before releasing the less than inspiring finals after being back trading? Maybe time and process caught them out.
Analysing the numbers one key number in particular is the % of raw material against revenue. The previous year the raw material content was around 60%, 2021 this changed to 72%. That to me is significant, as we all know gross margin is key and this type of either margin erosion or poor quoting is very destroying, it certainly wasnt in thier forecast. Pro-rata this has hit the bottom line by 50,000,000 RBM which is a huge number. Also i notice there is a significant deduction for in impairment losses of 15,868,000 is this a deferement or charge ???
Its obvious they have had a poor year due to Covid and thier minds not focussed solely on the business but i do think there is shuffling of numbers to offset gains.
.
https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0614/2022061401173.pdf
Anyone know what time the board meeting is taking place today?
Also need to remind ourselves we are valued at only £27m before suspension and we have accumulated over £30m in net profits. While a £1m profit is not what we expected it is still a profit. Trying my best to put something positive in the mix but no wonder there are no photos of the BOD on the website as i am sure local investors who bought in at 1 HKD are on the hunt for these chaps as even the last interims did not spell anything out that made anyone consider that teh final 6 months were not going to be robust. obviously they knew at the interims already what the situation was as we were 12 months ahead so it is odd they did not sound a bit more cautious to help set the scene. i do wonder if they have engineered this and delayed contracts themselves just so they do not have to declare a dividend or orchestrate something else, maybe a buyback on the lowest price possible. You simply do not know what is going on.
lets see how tuesday goes. Obviously this is incredibly dissapointing but so far every date for return to market has been hit. Obviously Covid has had an impact and countries like africa and SE Asia might have delayed projects as China was less impacted and its good to see CNEL stepping out from PRC and the profits accumulated are in excess of market cap so optimistically if this is a blip and current year is better this will be weathered. Obviously as we know with this BOD is their agenda is probably quite different to everyone elses. They should have had the honourable decency to buy investors out when they left the UK and gone private saving £3m in the process and removing a considerable amount of scrutiny. Really the BOD should hang their heads in shame on all fronts for their handling and stewardship over last few years. There is massive profits in the company to pay a dividend if this is a blip of buy back (more likely) but key here is that we have ticked all requirments neatly to return to Hkex so we have 3 months left. I think it will happen but perhaps not quite so triumphantly. If they can get interims out prior to return it could help the situation.
not looking good topmoney. and here was me thinking or hoping for £10M profit for the year. crazy!!! complete **** show and i'd be very surprised if we return to market now. sept isnt too far away and if that comes were delisted. not a good position to be in. crushing all the positive feelings on that profit warning RNS.
Its over. They have done the unthinkable.
Like many of you out there i run a business (with integrity) and the really concerning statement i saw in the accounts was:
The overall gross profit margin decreased from approximately 29.3% in 1H2020 to
approximately 18.3% in 1H2021. The decrease in gross profit margin was mainly due to a
number of sizable contracts which were priced at discounts for regular customers
This is a serious issue if this is the case and it is the easiest number open to manuipulation if you dont want to pay tax dividends or declare profits. As we now have some history if does casts doubt, especially when you are saying discounts have been given to regular customers, therefore all forecasts are out the window. MMMMmmmmmmmm
Forget it. Its over. We are not getting relisted now. We have been looking on with blinkers hoping that theres redeeming features for bod to pull out of the bag. But there hasnt. Employees not buying shares at share offering for 1.5p told us all of imminent danger. That danger is now on our doorstep. I just hope that BOD get there come upons. I think Richard Bennett is as shocked as us. Haven't been speaking to him but I think its him and other neds who have pushed out board meeting for mkre details. Same as they did before suspension last yr. Its over. Ivy Xu emailing me all yr that business is as expected.
Excuse my nativity. This is the 2nd think I’ve seen about a share but back. Can they forcibly buy our shares back?
The question is really if this is a blip and first 6 months of 2022 was strong or what has been going on. If its a blip and those contractscin SE asia and Africa are now on it will be less of a problem. We will see but they must have known this 6 months ago so why not explain the issues then than waiting until the last moment when it causes most distress.
We will find out what has occurred on Tuesday. Does seem rather odd as China has suffered with Covid issues this calendar year more than before December 2021.
Was CNEL previously looking at share buy back?. Could a proportion of profit be allocated to share buyback for when they relist?
Also, did 2020 accounts have a projected profit for 2021? Would be odd to announce a warning if there wasn't an expected figure.
so in the first 6 months of 2021 they make 34m RMB but somehow in the last 6 months of the year, even though order book was big they managed to reverse the whole year to be only 7.8m RMB? How is that possible and why was RB not even aware of this as recently as a month ago when he was promoting a dividend for the finals? Who else thinks that because the BOD are now blocked from getting money out via their mates they are now under pricing contracts and getting kickbacks as something is not quite right here? Given the world demand for Ethanol and production should follow CNEL should have been in a great position and their order book was reported. I guess the only silver lining is we made a profit but frankly it does not help confidence and the dividend would not happen. The fact that this is now the news potentially going back on hKEX is hardly the best place to come from. All i can say is the shareprice was so low that it probably cant go much lower. I hope they have positive news and that "delayed" orders are being signed now as we are just coming up to the half year 2022 so it might almost be better they wait and get the interims out for 2022 if they are considerably better.
oh dear :(
Oh dear.. the twist continues! I get it, however it felt like something was always going to derail a small celebration…
There's the sting in the tail! Dividend gone in a puff of smoke. At least they are talking about potential projects in Africa and South East Asia (even if they are put on hold). Trading tough, but half year to June (2021) 34m yuan profit, next six months 26m yuan loss - that's one hell of a swing. Especially as the first year of COVID they carried on increasing profit. Will have to see in more detail what the accounts say on this matter. I just hope they haven't been up to their old tricks again!
And... missed that notice. But, profit warning issued for 2021 results.
Moved to Tuesday 14th June.