KENNY -This probably a scam Chinese24 Dec 2018 16:40
company on the NEX exchange - STOCKOPEDIA report
Gamfook Jewellery Plc (GAMF)
Share price: 15.5p
No. of shares: 100 million
Market cap: £15.5 million
Admission on NEX
Curious to see that a Chinese company has listed on the NEX Exchange. It sells bespoke jewellery online and in Shenzhen and Fujian.
After all the failed ventures on AIM, are Chinese companies finding that NEX is a more suitable home for them now?
Some things I've noticed:
The corporate advisor is Daniel Stewart, who brought us the fraud Naibu (NBU).
Coincidentally, the Executive Chairman and Head of Sales at Gamfook both have the same surname as the Naibu Chairman. Both also have connections to Fujian province, which is where Naibu was founded.
Scrolling through the Director biographies, I see that the token Westerner on the Board currently lives in London and does not speak any form of Chinese. He owns no shares in the business.
There is one other NED who speaks Chinese and English, but none of the Executive Directors speak English.
The company is registered in Jersey, with one Hong Kong subsidiary and three Chinese subsidiaries. As the Admission Document says, "The ability of Shareholders to bring actions or enforce judgments against the Company or the Directors may be limited."
Following Admission, the Executive Chairman is a 73% shareholder.
The company claims to have 4.6% market share of the custom jewellery market in China, with revenues and profits growing at incredibly rapid rates over the past three years.
It uses the same set of accountants ("Crowe LLP") as Naibu used ("Crowe Clark Whitehill LLP").
Conclusion
Regardless of the value of the business in China, this particular IPO is dripping in red flags. The shares are uninvestible.
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