||EPS - Basic
||Market Cap (m)
Real-Time news about China Growth (London Stock Exchange): 0 recent articles
|abbott4303: No reason for share price increase .
Can I buy in at 1p I wonder ?|
|tomboyb: Hi sirra -
Scarborough have quite a few Chinese investments - and a lot of contacts which should give them an advantage - I got the opinion they could do a share buyback with stipulation the share price > 1p -|
|charmer1_23: Will put this on the watch list for now, Mr McCabe is obviously a heavy hitter who sports quite a CV, so curious to why he has taken a stake & a seat on the board of this little tiddler, his stake at 1p was a big premium at the then prevailing share price, interesting. :-)|
|knowing: I'll take 75% of the current share price and hope that one of the other investments turns trumps.|
|knowing: At 8p and working on the 20% rule taking the worst case NAV of 11.41 the share price should be around 9p min|
|damanko: CHAIRMAN'S STATEMENT
I am pleased to have the opportunity to present the unaudited condensed half yearly results of China Growth Opportunities Limited (the "Company") for the six month period ended 30 September 2009.
Return of Capital of 20 pence per Ordinary Share (equivalent to £10.0 million), comprising 18 pence per Ordinary Share on 15 July 2009 and 2 pence per Ordinary Share on 5 October 2009.
Net assets at 30 September 2009 of £14.4 million (30 September 2008: £47.2 million; 31 March 2009: £25.5million).
Net assets at 30 September 2009 of 28.8 pence per share (30 September 2008: 94.4 pence; 31 March 2009: 51.04 pence);
Loss for the period ended 30 September 2009 of £2.1 million, equal to a loss of 4.3 pence per share.
On 29 September 2009, notice was given to terminate the Asset Divestment Support Agreement with London Asia Capital (S) Pte Limited on 31 October 2009, and Rhys Davies and Brett Miller, who were Non-Executive Directors, became Executive Directors.
Dr Weiming Zhang appointed to the Board, as a Non-Executive Director, on 9 April 2009.
Resignation of Simon Littlewood as Executive Director on 19 October 2009.
Sale of holdings in United Envirotech, Asia Water Technology and China New Energy for a total of £4.4 million.
During the six months ended 30 September 2009, the Company was successful in finding buyers for three of its investments, United Envirotech, Asia Water Technology and China New Energy (see below for details), and I believe the Company is on course to sell the remaining six investments in the portfolio by 30 September 2010.
The net assets of the Company at 30 September 2009 were £14.4 million a decrease of £11.1 million since 31 March 2009, largely attributable to the return of capital to shareholders of £9.0 million on 15 July 2009 (see below).
The Company suffered a net loss for the period of £2.1 million (4.3 pence per Ordinary Share) (30 September 2008:
£24.5 million, 31 March 2009: £46.1 million).
The share price rose 72% from the 31 March 2009 price of 12.5 pence to 21.5 pence per Ordinary Share at
30 September 2009. The total return (including the 18.0 pence per share return of capital) was 216% for the period.
Return of Capital
At an Extraordinary General Meeting held on 6 July 2009 the shareholders approved a Return of Capital Scheme and amended the Articles to permit future returns of capital. The Board made an initial return of capital to shareholders of
18 pence per Ordinary Share (equivalent to £9.0 million) on 15 July 2009. A further return of capital of 2 pence per Ordinary Share (equivalent of £1.0 million) was made, after the period end, on 5 October 2009. At 30 September 2009 the Company's cash balance totalled £1.9 million.
Dr Weiming Zhang was appointed to the Board on 9 April 2009. On 29 September 2009, following notice of the termination of the Asset Divestment Agreement with London Asia Capital (S) Pte Limited (see below), Brett Miller and I ceased to be classed as Non-Executive Directors and were deemed to be Executive Directors of the Company. On 5 October 2009, Simon Littlewood resigned as an Executive Director.
Asset Divestment Support Agreement
On 29 September 2009 the Company gave notice to terminate the Asset Divestment Support Agreement with London Asia Capital (S) Pte Limited on 31 October 2009. There was no cost to the Company of the termination of the Asset Divestment Support Agreement. Following the termination of the Asset Divestment Support Agreement, the Board has continued to manage the sale of the Company's investments and the Company's investment activities are now fully self-managed, with all services previously provided under the Asset Divestment Support Agreement now being undertaken by the Executive Directors, being Brett Miller and I. This has reduced the investment consultancy costs to the Company significantly.
Change of Nominated Adviser and Nominated Broker
As part of the continuous endeavours of the Board to ensure that the Company receives excellent service as well as value for money from its advisers, on 6 November 2009, the Board terminated the Company's agreement with the Nominated Adviser and Nominated Broker, Collins Stewart Europe Limited, and appointed Singer Capital Markets Limited to undertake both roles.
During the period ended 30 September 2009, the Company sold its entire holding in United Envirotech, Asia Water Technology and China New Energy for a total of £4.4 million. This was £0.1 million above the 31 March 2009 "fair value" of these investments but realised a loss of £11.3 million.
The Company now has six remaining investments in its portfolio, valued at £12.0 million.
At 30 September 2009, the Company's main investment was a 14.64% holding, valued at £7.6 million, in China Metal Packaging Group Company Limited. China Metal Packaging is a market leader in its sector and represents a pure investment play on the trends of rising urbanization and domestic consumption growth in China. Brett Miller was appointed to the board of China Metal Packaging Group Company Limited as a non-executive director during the period.
We have valued your investments in China Metal Packaging Group Company Limited and Wan Wei Oil & Gas Technology Group at a 10% discount, in local currency, to their 31 March 2009 valuations.
This reflects our conservative assessment of the value at which your investments could have been exchanged between knowledgeable, willing parties in an arm's length transaction at the reporting date (so-called "fair value").
The valuation of China CDM Exchange Centre Limited rose by 78% in the period under review as we value it on an NAV basis, using a 50% discount to its AIM listed peer group of environmental investment companies. Therefore, while the peer group traded at a 29% discount to NAV on 30 September 2009, we valued China CDM Exchange Centre Limited at a 65% discount to its stated NAV at 30 June 2009.
Moreover, as the pound appreciated by 10.4% against the Renminbi during the period under review the overall investment loss in the period was £1,091,000.
The Board is optimistic that it will achieve the targets outlined in the Investing Policy and maximise the return to shareholders by negotiating the best possible value for the sale of the remaining investments.
8 December 2009|
|andrbea: Welcome aboard Matt123d
some recent happenings:
share price history since 19 January, showing a rise from 6.75p on 25 February 2009 to 31.5p today;
an announcement regarding the sale of three investments on 31 March 2009;
an announcement regarding the termination of the old investment support agreement with London Asia and the signing of a new agreement with London Asia;
an Asia Water update;
an EGM circular requisitioned by Rhys Davies and Brett Miller; and
an announcement of the results of the 23 January 2009 EGM.|
|damanko: This from today's RNS, which has sent the share price down a little......
Commenting on the investee companies' newsflow, Simon Littlewood, CGO executive director,
"Since the credit crisis began, CGO's executive directors have been working with all of
the portfolio businesses whose business models
were dependent on credit being readily available, to help them to switch to business models
which focus on cash conservation and generation.
In several cases, this has been at the expense of profit growth, which has in the short
term hit the accounting value of the
investments, but with the capital and debt markets effectively closed for the time being, our
view is that cash conservation rather than
profit maximisation is the correct strategy until the fund raising environment improves.
"This is consistent with the Board's commitment to pursuing a strategy of actively
realising meaningful value from investments and
returning proceeds to Shareholders in order to help to reduce the gap between the Company's
asset value and its current share price. To
realise meaningful value the assets will have to be actively managed until the market
environment improves and investments can be realised.
"AWT, UEL and CNE all had business models which were dependent on debt finance being
readily available to finance projects for them to
invest in. The well documented credit crisis and collapse of stock markets has had a
devastating effect on their share prices and
valuations. This in turn accounted for over *15m of the *24m losses announced by CGO in the 6
months ended 30 September 2008.
"We have focused a great deal of effort on these three companies to alter their business
models and restore value. The result of these
efforts is that UEL now has relatively low gearing and cash reserves so, to some extent, is
able to cherry pick higher margin projects to
invest in, such as the Dafeng project. We believe that this should feed through to better
future performance. Both CNE and AWT raised debt
finance in 2007 with various conditions attached, which they breached during the credit
downturn. This significantly impacted on their
ability to perform. Working closely with their management teams and debt providers we are
seeking to arrive at a solution which will see the
companies survive the current financial turbulence, and be in a position to return value when
"Our efforts have in part been reflected in the recent upturn in UEL's and AWT's share
prices. These rises are an encouraging start, and
in our opinion reflect an anticipated improvement in conditions in China, not least as a
result of the recently announced Government reforms
easing credit and encouraging infrastructure investing, particularly in the water sector where
UEL and AWT operate. These moves are
unlikely to be implemented quickly enough to impact positively on 2009 performance at our
investee companies, but provide optimism for their
2010 performance, enabling sensible realizations once they start releasing their interim and
annual 2010 results in late 2010 and the 2011"|
|loverat: This posted a while back on the other thread.
LCP The Plot Thickens.
Back in June I warned investors about the pompous-sounding London Asia Capital Private Equity Fund (AIM LCP). The published NAV was then 136p and the share price 75p. The share price is now 35p and the latest reported NAV is 143p.
The market's refusal to believe in the stated NAV is understandable. The new auditors (the old ones resigned ) explain that the groups 14 illiquid assets are valued using "a variety of methods and makes assumptions based on the market conditions at the end of each balance sheet date" or to translate the valuations are what the directors tell us they are.
Of the groups four investments listed on PLUS at the balance sheet date one, China New Energy (the groups largest single investment) has since been suspended, and two of the others China Biofuels and Dalian have not submitted audited accounts to Plus as required under the rules.
What is perhaps most strange is that the group has booked through the P&L a\c around £7mn in performance fees due to its "investment consultant"London Asia Capital in the last two years of which the cash flow statement shows £3.1mn to have been paid already.
London Asia Capital is suspended on Aim due to the non appearance of its accounts and its new CEO seems unclear as to where this money has gone. London Asia Capital has no executive directors and on my last look was being run from a language school in Falmouth Cornwall. Trying to find who exactly at the company is providing £7mn of advice to its client in two years is proving somewhat problematic.
To recap: the company,s performance and the record keeping of the companies in which it has invested is highly questionable and the whereabouts of the fees it has paid out to its investment consultant are unknown by that consultant's own CEO.
If this isn't one for AIMs regulators, I don't know what is.|
China Growth share price data is direct from the London Stock Exchange