$48m in cash, dividend - sell @ 82p14 Sep 2015 17:39
Almost exactly a year ago, JSI, maker of doors in Fujian province, became the 50th China-based company to float on Aim. Then, it was valued at £100m. It is now worth £8m. This month, for the second time since it became a UK public company, it said it knew not why its shares had fallen so far.
It is unfair, says Derrick Woolf, a non-Chinese speaker who is the company’s only non-executive and only UK-based director. He points out that Jiasen is profitable, has about Rmb300m ($48m) in cash, is paying a dividend and has founding shareholders in China who own 80 per cent of the shares and were locked in for a year when Jiasen listed.
He reckons Jiasen has been unjustifiably tainted by the travails of other Chinese companies on Aim. Last month, shares in shoemaker Naibu Global were delisted after its UK-based directors lost contact with China-based executives. Sorbic International, a food additive business in Shandong that lost control of its cash and corporate seals, and then its nominated adviser, has until July 16 to appoint a new nomad. If it cannot, its shares will also be cancelled.
Mr Woolf points out that Jiasen made an unusual pact with Aim’s regulator, promising outside investors they can sell shares at the float price of 82p if the company delists within two years of flotation.