Member Info for Slugworth

I can get you a link regarding takeover. As for flatly denied it - they verified the speculation, but denied any approach had YET been made.

The word challenging appears twice... just as many times as WSG's last results. I suspect the next results will be a lot better than you think

So you are saying that you believe the accounts posted are fraudulent and a UK entity has knowingly been a party to this fraud and approved such fraudulent accounts? Quite a bold statement, I assume you have evidence of these wrong-doings? How often are the shareprice statement RNS's 100% accurate and fully explain a companys situation. Just recently AFPO released one saying no reason for the rise - this following a landmark agreement to sell potash. Dont you think they could have offered some alternate reasoning too? Most people here werent even expecting take over talks, they are here for different reasons. If anything now we have take overs to think about too.

I think you'll find David Summer is british and holds about 15% of the company. He still holds too.

The financial information in this announcement is derived from the Company's audited financial statements for the year ended 31 December 2014 which are available on the Company's website www.auhuacleanenergy.com. You could ask the same question about any company - oh but what if they havent been audited properly?? oh no! Again, just because one company has done something wrong, doesnt mean that any similar company has also. Its like me saying that WSG is doomed to fail because G4s has a scandal a year or two ago. Hardly sensible reasoning.

Take a look at the shareholders, do you see any of those dumping and running? ACE Major Shareholders: Auhua Holdings Limited (Raphael Tham - Vice Charman) 22,500,000 25.1% Auhua International Holdings Limited (Mr Chen Anxiang - CEO) 14,934,000 16.7% David Sumner (Chairman) 12,912,700 14.4% Sunmax Global Capital Fund 7,800,000 8.7% Raphael Tham Wai Mun (Raphael Tham - Vice Charman) 3,310,000 3.7% SSP Innovations Pte Ltd 3,086,400 3.4% Foxtrox Holdings Ltd 2,963,404 3.3% Wealth Fort Investments Limited 2,779,000 3.1% Total = 78.4% Only 21.6% in free float. Less if you take in to account shareholdings of less than 3%

The attraction is the difference between SP and NAV, and it doesnt even account for growth and earnings, only saleable assets. You could say that various factors have led to the company being at this SP - the chinese economy, other recent bad press for chinese companies, and the discounted placing - but whilst these things are obviously very bad for those who were holding 6 months ago, they have led to a very real buying opportunity today. This has been majorly oversold and is now due to return to more sensible levels. The company has a clear plan going forward, and a good history of sales (the need to increase production from 80,000 per year to 150,000). Is there some part of the accounting that you find questionable?

I am struggling to match up these buys and sells also - Ive seen a couple so far, but that is hardly indicitave of anything. It looks to me like a few traders set up some stop losses just in case, and they were triggered by the volatility following the RNS. I hardly thing 2 or 3 occurences of that sort lead to any real conclusions.

Those RNS's always lead to erratic trading - people tend to have a knee jerk reaction and jump straight out. You'll notice that many also jumped in. I suspect there are a great deal of delayed trades yet to be shown. As for other chinese companies - just because one is a bad apple, doesnt mean they all are. Do you see any problem with the accounting? The figures say it all, this is massively undervalued

Once the new factories are online and producing, I look forward to hearing more about the Green Land Group! :) Auhua continued to make good inroads into the mid to large property developers. This included the securing of an agreement with a subsidiary of Green Land Group to supply 1,570 units of solar thermal water heaters. Green Land Group was ranked No. 268 among the Fortune Global 500 companies in 2014 and one of China's largest property developer groups. The Group would have been in a stronger position to secure similar projects if not for the limited production capacity and the small paid up capital of its Chinese subsidiaries. The Group is already operating at full capacity and because it has taken longer than initially expected to raise capital from the market, the Group has therefore had to use its own internal funds to finance its production expansion. Since these funds were sourced in China the Group was unable to increase the paid-up capital of its Chinese subsidiaries since the fund injection needed to come from overseas. Nevertheless, the Group continued to make investment in sales, marketing and training in preparation for the Group's future expansion.

Given that the company has been successfully running for several years, the delayed payments arent a huge issue, we still have money coming in from historical transactions, but as you say, it is a factor in the cash flow.

They also acquired Taiwan Zolar technologies May 2014 as part of its R&D plans

Consider this - do you really think they will need to double the number of producing factories every single year? That money could well be spent differently this year.

The company is going through a phase of rapid expansion, they are moving into Dubai, UAE, greater coverage of China, and plans to further expand in the global market. If you loo kat the full year results you will see they have spent about RMB15m on construction (new factories) in line with increasing yearly production values (from memory I believe they are currently at about 80,000 and targeting 150,00) Also, with increased sales, the admin costs also go up. The company was simply a little too bold during a time of economical difficulties amongst its own plans, and overspent. IMO money spent on growth is money well spent, and most of this translates to the companys NAV. Look around, DYOR

Both those figures are this year. 32mil is Yuan, the 4m is GBP. Our yearly profit is about the same amount as our Mcap. Then we have assets of about £25m. Cash in the bank. Earnings potential, growth potential. Look around, do some research

Dont panic!!! ACE is OK!!! Get in at the bottom!!! Auhua shares currently trade on an extremely low forward PE of c.1.3x largely reflecting concern over the Chinese Economy and extremely bad publicity surrounding several Chinese companies quoted on AIM. Sentiment has been further undermined by the recent stock market crash in China and by the heavily discounted share placing in June 2015.  It is perhaps worth remembering that in 2008, many UK microcap businesses quoted on AIM experienced collapses in investor confidence and share prices because they were cash constrained at a time of deepening financial crisis. Whilst, some did not survive or moved back into private ownership, others went on to recover, generating extraordinary returns for investors over subsequent years. Auhua remains profitable, has good technology and has net cash approaching its market capitalisation. In our opinion, it has the potential to deliver to investors exceptional returns through a combination of growth and rating recovery.  Against this backdrop, we have set a 12-month target price of 20p representing a forward PE multiple of 6x 2015 earnings and an EV/EBITDA multiple of 2.5x. This equates to a potential more than four-fold increase in the share price from its current level.

Look at the figures

Assets of £24.9m. You cant really go wrong at this price, can you

So the NAV is about 22p instead of 28p. But even then does that take into account earnings potential, growth potential etc etc? Anyway you look at it, this is currently very undervalued

The figures are from the full year results, about 2 months old. You may have to adjust by the recent share issue in some cases, but those are the fundamentals