Member Info for Rustyrat1970

I suspect lots of limits popped this morning for the cautious investor. Hold on to your nerve guys !!

Hi All, im new to this share but from what i have read and understood so far it does look promising. For reference i placed my order today as below which has come up as a sale.
12-Apr-23 15:17:50 8.68 28,732 Sell* 8.60 8.80 2,494
Nothing changes ;-)

I still see it going down more before it returns. News will help along with good regular communication as trust needs to be built. When the employees or Directors start buying, I may invest some more.

Just pinged Richard who answered in 2 minutes that talks are continuing and there will be another update next week ????

Still in my Interactive account

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.

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

I had a reply from Richard with regards to 2021 results and Cnel re-listing

“The chronology is that they have to publish the 2021 accounts and annual report. I expect this to al be completed by the end of June”

Although it seems further delayed, we are still moving forward ??

Nice set of results with a huge revenue increase. However the BOD really need to look at the gross profit as the cost of sales is appauling for a high tech business like this. Cost of sales 2020 - 70% and the latest results have eroded a further 11%, there must be some low hangining fruit there to go after i thought..... until i read this

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.

Discounts ?? I wouldnt mind seeing some more information on this please CNEL pro-rata thats 30 million in discounts, stright off the bottom line

It is anticipated that the accounts will take around 2 weeks for comments on the investigation report and then 2 weeks to finish. So with a good wind behind us we could be submitting to the HKEx by the end of the year.

Afternoon All, I received a small update after asking Richard if light at the end of the tunnel was near. Richard answered that there is. They have finally received the draft investigation from the DLA which means the iNEDs including Richard can now start to drive a resolution. Priority obviously is to get the accounts published and then talk to the regulators to get the suspension lifted.
Sounds very promising and at least the investigation board have the report to drive now.

Morning All,
I have managed to get a small update on the current situation.
News is expected in the next 2-3 weeks. DLA have told the adit committee (Sam, Heron & Richard) that they have very nearly concluded the investigation interviews and will have a draft report by the end of the month.
The report is truely independant and therefore the audit committee have had no insight into the findings. So if the news or good or bad we are not aware but we do know it is drawing to a conclusion.
So we should know all in November, one way or another

I can only apologise to all of you that nothing seems to be happening as forecasted. I have pinged Richard again to see if I can have a update on the timing plan today. I will keep you all updated if I get anything back but I do expect in this case that no news is good news. Mainly due to compromising the BOD of third position.
Fingers crossed all and hopefully it won’t be long now ??

He did indeed Ben

Richard Bennett has said that the DLA will have the draft ready early next week so they will be issuing a timetable shortly ??

On the back of my previous update i have just been in touch with Richard again and asked if we are progreesing as planned and do we have forecast date for completion.
Richard has resonded quite briefly with " They have to respond to HKEX by the 17th" . Hopefully we know the deadline and the BOD are working to this, so we should hear something soon. Fingers crossed fellow Investors, keep the faith.

Hi All

I posted to Richard recently about the white knuckle ride we are on and the lack of news. This is what came back ??

I share that feeling. 

The audit committee (Sam, Heron and Myself) are still waiting for the independent investigation report. We appointed DLA Piper, and they are struggling to get timely responses back from the 3 overseas companies in Japan, India and Canada. 

We had a call with them this morning, and they are expecting to get a draft this week. Once we have that, hopefully everything should fall into place quickly.

Ive been informed that the PWC have been asked to resign and the change of auditor being DLA Piper will complete the independant investigation to enable the accounts to be published this month. Its then expected that trading will resume shortly after, so fingers crossed we dont have much longer to wait and there is light at the end of the tunnel.
We are nearly there guys !!!!

I think it will be this week when we get the update.

They are waiting for the final independant check of the audit investigation report and this will start moving quickly again. Availability of such auditors and covid is slowing this process down in my opinion.