SGM polling results today. Total shares represented at the SGM only 306,917,300 shares. Minus Lead Champion shareholdings shares of 289,100,000 so only left 16,817,300 shares held by total minority shareholders present at SGM!. Pathetic turnout and it seems all the rest do not care what is going on with their investment!.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1513365

XDL 2012 yr end financials stated :

Cash in Bank : RMB305,108,000
Interest expense : RMB2,297,000
Interest income : RMB1,262,000?? 0.41%/yr?
Share price : 56.5c

The CSL CFO stated that RMB1.6b is parked in FD now. Forgot to ask him effective date of FD. The figure should show up in Dec13 results. IF not cash is missing. As I mentioned in my earlier posting, investing is CSL comes with risk. What is your risk tolerance? IF you think it is no good for goodness sake don't buy the co. share!. GO buy other blue chips for ho koon ho jiak life style. If CSL has good corporate governance like Nestle and the likes, then it will be RM1.20 now and not 20c. When the chance is lose 1 but can earn 2 type of odds some people go for it. Even if it goes PN17 like HB global the base price is still 14c/share. HB losing tons of money every quarter and cash nearly gone!. Malaysian stock market is like a casino and players just like to dabble in it out of addictive habits. They say accountants and financial guys never really make money because they use a microscope to go through every line in the financial reports so they all chicken out and missed the big run up in the share price. So fellow investors, invest with the "China factor" in mind otherwise bail out and move to "ho koon ho jiak" land.

Transactions breakdown for last few days for info:

https://dl.dropboxusercontent.com/u/28639210/Transactions%2010JAN14.pdf

When we talk about div. payment always refer to which accounting yr. So far to date CSL paid div twice and 1 time free warrant issue. The 2 dividend paid so are are interim 1.8c(2012) and final 1.6c(2013) giving a total of 3.4 cents declared for year ending 2012 as per their prospectus and 2012 annual report. THis is correct. This is common as companies sometime delay the payment of final div for yr 2012 to yr 2013 - acceptable practice but in so doing they purposely spread out the payments. So for yr 2013 div. CSL can have to get the shareholders approval for a final div payment at the coming AGM since no interim div has been declared todate.

Can all you guys stop speculating on SGM? Too much half truths on this forum and u don't know who to believe - sad state of M'sian bloggers!.

It is up to you to believe what I am going to update u all:
1. FKT got sacked because the partner resigned and due to lack of trained auditors for China Audit they intend to outsource to third parties plus increase in their fees to S$300k+. Current fee S$200k+. New auditor RT charges S$100k+ - fair proposal. Their China Auditors for the Subsidiaries in CHina is still the same.
2. Dividend policy of 20% of net profit will be maintained i.e. no change - this is minuted at the SGM so I don't think the co. will not fulfil what has been said at SGM.
3. CF sold down Lead Champion's stake due to force selling and selling to strategic partners. He no longer controls 51% now judging from the poll results. Only 300m plus shares recorded in the poll result announced at the SGM. A lot of major shareholders not represented at SGM.
4. CEO has passed away as confirmed by CF & CFO. They are still manhunting for new CEO.
5. CF answer to cash in bank deposit i.e. low interest received is not very convincing though. Let's see the 4Q results to judge.
6. The RT LLP CEO was present to answer questions.

Based on today's SGM outcome, I will hold on to my shares.

Low turnout at this morning CSL SGM. Why don't you guys attend the SGM?.

https://dl.dropboxusercontent.com/u/28639210/CSL%20SGM.JPG

In U.S. stock markets there are short sellers who are professionals and they make money by shorting shares in companies and go all the way out to discredit the company by publishing evidence of fraudulent financial statements for the investing public to see so that all those who believe them will also sell down their share holdings. SO this way the pros make their money. But in Malaysia scenario we can't short sell and the only way some people can do is to discredit the company so that one can buy back the share at a miserable 3 to 4cts lower. If one is real smart and a good researcher, then one should look to the US market where the hunting ground is vast and targets are plenty for short selling opportunity. Why target CSL just to buy cheap?. Isn't 20c cheap enough?. I am puzzled really *#1?.

Last 1 month was the calm before the storm. The basing pattern observed recently was at the end of a prolonged selldown and it normally leads to a reversal. But today was unexpected in terms of volume and esp. last minute before the SGM tomorrow. Could it be CF and his proxies?. He has enough cash from his share sale : sold altogether 603,900,00 share, received RM256,117,200. Avg price is 42cts/share. With so much cash CF can easily control CSL share price. So for small fishes do stay around and pick up the leftovers as the shark does the hunting. haha ...

If I had sold my 5kk at 19.5c, could have missed 75k like someone who chicken out! You all know who I meant. Tomorrow sure go up cos EGM day. Need to create positive news so they don't get too much firing!. TP 25c esok!

This message is direct at Datuk?!*#. I think u have lost yr credibility in this forum by yr past inconsistent views, recommendations, comments etc... We are all matured people and possess discerning ability to judge character. So I suggest you should stop trying to influence people through yr inconsistent views on CSL.

edkfc: THanks. By the way, I called the share registrar not Bursa : Tricor Investor Services Sdn Bhd located at The Garden North Tower, MidValley. Tel 03-22643883.

In YEar 2011 financial report, the CSL's China Auditor was "Shenzhen Xi He Certified Public Accountant (page 13)" while FKT was the independent auditor for the 3 subsidiaries of CSL based in CHina. Every year the local companies have to file their audited annual reports with the State Administration of Industry and Commerce(SAIC) and the State Admin of Tax (SAT) in order to renew their license and to pay their tax. External parties can't access those reports now.

Ask them who is their current China Auditors - is it still the same firm?.

Ask if the total consolidated accounts tallies with the China subsidiaries i.e. Sakura (Fujian) Packaging and Stationery Co. Ltd, Sakura (Fujian) Plastic Enterprise Co. Ltd & Ruiyuan ((Fujian) Enterprise Co. LTd. in terms of total revenue, gross profit, tax paid etc.

Another question we can ask is why is the company not buying back the share to support the price?. The SBB stops after the 10m buyback. Approved buyback is 10% but current treasury shares is only 0.8%.

When it comes to voting, if CF and his proxies holds more than 50%, the appointment of the new auditors will go through. As minority shareholders we really can't do much.

What is the difference in risk when one buys CSL at 16cts compare to 20cts?.I don't think CSL will drop to 16cts in the absence of any major audit issues. If the co. is bogus i.e. no factory & land, minimal turnover and zero cash in bank don't u loss all yr money all 16 cts when the co. is suspended and delisted?. All the work of speculators who spread rumours and falsehood without evidence and facts. I challenge someone to present some facts of financial fraud for all to see?. IF not all this is pure fear and negative perception which at 20c has all been hughly discounted. CSL does not do retail business i.e. they don't sell on website themselves. I am just trying hard to find a reason to sell of my shareholdings, but at this point I am holding on until the time I am satisfied that it is time to get out based on my gut feel.

The share market is a zero sum game. Someone's loss is another person' s gain. If U exit with zero gain, someone is going to gain when the share goes up. So we back to the risk factor. When csl was rm 1.5 there are people who think that it is a good company. Their perception at that point of time was very optimistic and bullish. But they didn't realised at that point of time that the sharks are playing up to sell esp in the absence of positive news. So the sharks makes money by pushing the shares up and also make money by selling down the share.

Now compare the risk of investing at 20cts compare with when csl was rm1.5?. Their property alone should've worth 20cts/share now. Their loan liability is little. Their cash can't be zero. Stationery business should be profitable when compared to bamboo products. Csl was not a reverse takeover listing so there due diligence must have been carried out by the relevant authorities and auditors. Manger's P.E is above 15 now and yet investors poured their money into the stock judging from the oversubscription rate. When will the shareholders ever expect to get some dividend with their low EPS.
At least in csl case there is a good chance of getting some dividend this year if the dividend policy is maintained otherwise at the next AGM shareholders can accuse the co. Of misleading investors just like
advertisements who mislead people into buying their products. A change in dividend should be accompanied by reasonable explanation.
What if the price is sold down by big sharks and major shareholders?. We can only speculate right?.

All investors need to do research before putting yr money into any counter. Don't listen to rumours and misguided info put forward by some formers who are not transparent. 50% truth, 50% untruth. See fact and figures and use our own judgement. If got no info better put yr money in bank fd and get 3%/yr. Klse is a dangerous minefield and any wrong step U get blown up to pieces. Unless one has some knowledge of the minefield stay away.

Datuk: not everyone are aware of china companies until one got into the boat. What to do when one in in?. Hope to recover some losses right. U are lucky and smart to get out without scratches but what abt the rest?. U know how many people got conned by china companies in the world?. If everyone is so knowledgeable in investment all should be stock analyst already.

I called the Share registrar to enquire about the latest shareholders listing as at 31DEC13 and was told to write in. We can ask who are the major share holders currently since CF has pared down his stake to 23% now. If he refused to give the answer, then I will write to the registrar for permission to sight the list. I was told the Board of Dir. need to approve it- shouldn't be a problem according to the staff.

In regards to the auditors, ask if FKT resigned on their own accord or CF got the new auditor in to replace them. If CF replaced FKT with RT LLP then what are the reasons for the change?. Fee savings or because they discover something?!. Currently FKT mentioned there is no issue at hand. So this is good.

Ask CF why he sold down his major shareholding all the way down to 20cts when he himself told reporters in May 13 that CSL is a 1000 mile horse. He is Sun Yang, the horse trainer, who knows CSL is the one. He contradicts himself, so how can he expects others to trust what he says now?. Even if this is not on the agenda but the pressure will be great from the shareholders at the SGM and emotions will be high.

On dividends, we can ask the board whether there is any change in the dividend policy of paying 20% net profit to shareholders. This is another hot topic and all shareholders at the meeting will definitely put pressure on the board to give an answer.

All of the forumers can contribute to make up a full list of queries.

All I can say is CSL performance all depends on the CHina auditors and independent auditors to verify revenue, profits and cash in bank. All previous foreign listed CHina companies failed because of poor quality audits.

All shareholders should show up at the SGM to show CF that we are all very concerned abt issues in hand.

I think a lot of investors totally lost confidence in CSL and sell to cut loss after having lost money. XDL gain so much recently by asking investors to pump in more money and at the same time issue more bonus share which doesn't add any value to their shareholdings?!*.

CSL fixed assets are worth a lot now with the escalating real estate price in China cities. A revaluation of their assets now would push their values to above RM200m which is about CSL current capitalisation at 20cts/share. Revenue & cash figures really depends on good auditing.

Comparing the 2013 3Q cumulative results of CSL vs Asiafile.
Profit margin(after tax) for CSL is 23.18%. Asiafile is 13.96%.
last few yrs Asiafile % is much higher 19%-24% range. Considering that CSL made their own PP sheets plus their patented Nachi products, I feel that the profitability margin is not unreasonably high. Their overheads is low esp. when they operate on own premises with the rental expenses.

Usual window dressing for KLSE stocks to look good in annual reports.
Looks like there will be CNY rally coming!.
Happy New Year!

Hey! Datuk: In CSL forum lah. Need ticket to get back on board must buy at least 1 lot to board ship lah!. hehehe .... long time no hear from u.

Because my trading ac is with nominees that's the reason possibly. Always can't get to front of the queue?!#. So less chance lor..

Smartly: I have been booking to buy at 19cts and u know what?. Can't get a single lot for past month till now!. Good luck to u waiting for 19cts. I can assure u that u make small but u lose big!. Take my advice from someone who has been in the market for 40yrs and has made enough money to retire with financial freedom.

meverick88: why do u gamble? Is it to get other people's money or due to addiction/boredom? One of my wife's nephew gambled away his family money until Ah Long looking for him. All uncle and unties got to help him out including me. Matter resolved now so I got to keep track of him once to a while to counsel him. Caused a lot of distress to family members.

Cheeby, U are welcome!

Fam J, u are welcome!

hornet: When one invest we use our gift of discerning and able to tell good things and bad things just like when we go to the pasar to choose apples. My logical thinking tells me that if the Independent Directors had toured the factory premises and seen everything, which we may not have the chance even if one of us were to visit the place ourselves, my take from this evidence is that we need not visit the place. Even if you or me were to go there, so what?, it will also be a photo that shows the same thing!. Can you check the revenue, profit, cash balance in bank, inventory value, receivables, payables etc....

If Pelican, a major global stationery player had made a decision to swap 10% of their shares with CSL, u think Pelican is not aware of CSL's business and presence in world market?. Even a new independent Director of Pelican bought 26m shares in CSL - check it out on 2012 annual report and Pelican latest board names. I think this Forum had enough of this topic and all should move on to more constructive inputs for the benefit of all who are in the same boat. Hopefully it will be a luxury cruise for some!.

A long basing pattern at all time low has been formed which means a lot of accumulation of stock by investors at this level. Never once breaks below 19cts. CSL needs a stimulus like a dividend payout to trigger a breakout of this range with consistent good volume. Those who hold on will be rewarded with a good return and quick!.

https://dl.dropboxusercontent.com/u/28639210/share%20CSL%20transaction%2027DEC13.pdf

Photos of Board of Directors meetings & tour of CSL factory in Putian - no need to visit factory in Putian - all agreed?. The issue is more on the reliability and quality of audit done todate by FKT!

https://dl.dropboxusercontent.com/u/28639210/Board%20of%20Directors%20tour%20of%20factory%20in%20Putian.pdf
https://dl.dropboxusercontent.com/u/28639210/Board%20meetring%20in%20Putian%20CSL%20office.pdf

Fam J : The local audit firm is Pricewaterhousecoopers(PwC)

From the EGM notice and the attached resignation letter from FKT, it looks like FKT was asked to resigned to make way for RT-LLP.

Under the Malaysian Code on Take-Overs and Mergers 1998 ("Code"), the threshold to take-over a company and de-list it is higher at 90% acceptance of shares outstanding which are not held by the acquirer, in order for the acquirer to undertake a compulsory acquisition for the remaining voting shares of the target company.

Kinsum: CSL don't have a subsidiary in Indonesia Surabaya. Wonder where u got the idea?. Nachi is different from "Nachindo"!

Tom : I strongly suggest that you check out the independent research report prepared by Frost Sullivan Msia SB which is contained in the original listing prospectus page 256 onwards covering "plastic stationery, tape printers, paper envelopes markets". You can also call Mr. Dennis Tan the Director for clarification if u have further doubt abt. the CSL business. I don't think anyone could say on this forum that he or she is more knowledgeable than this professional firm.

If u can't find the report I would gladly help u.

I wonder what is the minority shareholders' stake at the moment?.
Between 2 of us, total 5.6kk. If the direct deals done by CF is under his control, then no way the minority shareholders can do anything abt the appointment of his chosen RT.LPP auditor. We will be attending the coming SGM on 10JAN14 to support all minority shareholder -blast whatever questions we have and get CF to answer!.

Enjoy the holiday tomorrow and forget CSexyLady for a while! Merry Christmas to all!

All shareholders should go attend the SGM at Sime Darby Convention Centre on 10Jan2014 10am to approve change of Auditor :-
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1500825

I am retired and spent most of my time research stocks and I have made my millions from it. NO risk no gain simple economic theory.

Don't forget a lot of people paid RM0.95/share to get it-not 20c.
For china counter 20c EPS for 90c share is reasonable considering their reputation. Even industrial counters are valued at 7 to 8 PE.
Plantation n Banks can go high up to 15PE. So it is not unreasonable that CSL has to perform well to meet expectations of shareholders.

As for the net cash of 60c as at 30MAR13, it actually belongs to the shareholders cos the listing price is 95c/share. The Net tangible asset then is 89c, so left only 19c/share for the remaining non-cash assets. If the owner were to privatise the co. they will have to pay out the cash just like Glenealy Plantations when it was taken private last yr otherwise minority shareholders will object. The minority shareholder watchdog plays a role in this - I got my extra div. and a better price after that :-).

After 2 yrs the net cash has grown including the NTA, if everything is clear you think CSL will be 20cts? Think abt it. Fair risk n reward preposition right?.

If only I know all the answers, then I will be laughing all the way to the bank.. hahahaha!

I strongly suspect that the owners have not relinquished their major controlling stake. All direct deals done without revealing the new shareholders cos majority of the shares held under "Exempted AN (Authorised Nominees)". Nobody knows who they are and these are specially approved Nominee accounts where they don't have to reveal and report on the beneficiary owners. I asked a friend in working in SC abt this Exempt AN thing but got no joy out of it.

I know there are still many unanswered questions like why do the owners sell down their shares. Why don't they buy back more of the shares (currently only 10m in treasury). Why interim div not declared yet. Things will be clearer by end APR14.

If this 4Q results shows a loss then I also cabut leh!.

Datuk: I have done research on all China companies listed on KLSE - HB business model e.g. duck rearing is not convincing for me to go in despite the low PE 2 years ago. I agree they are already in trouble now and I won't touch it with a 10 foot stick it is like a cobra!.

I have also got out of the shoe business - Msport & Maxwell after losing some in MSport and gain some in Maxwell. CSL business model looks ok for now is my last unpolished gem that I still love. Wait for AGM before deciding cos want to hear what the board has to answer.

Funny, people just loves "new toilet" like Kanger - a sucker is born every now and then!

Good that u can ho jiak and ho koon now! Best of luck in yr next investment!

In this world there are many types of people who cari makan in different ways- some people for the love of money, scam, con and defraud in order to gain ill gotten wealth. If u are not in that category then yr conscience will be clear.In the share market, there are day traders, margin traders (can't short now), short, medium and long term investors like you and me.

But syndicates who manipulate at the expense of others are the real culprits cos most investors will get caught in their web and get eaten up. No amount of charting, analysis or past experience can save us from their snare. This I detest most.

Kimsun: The EPS are ok, nothing wrong with them. Don't use microscope to see it. Actually, china companies reporting are like that- they round up EPS figures, use only 2 decimal points, can't differentiate between cts and $ when filling in the EPS slot.

CSL is highly speculative counter. If not careful u will be charred!. Many buayas, hyenas, cobras etc. to swallow u. Be careful and thread carefully with all yr hard earned money. Right there is more doubt and fear prevailing but in reality the business is still the still the same as when the share is above RM1. I believe the share has been manipulated down by syndicates, so just play their way and hold on for an air-cond coach ride later when the time comes. The total cumulative EPS less div paid since listing is 28.9c. If people say this is false reporting, then we must also apply this perspective to all china companies in general. Fair reasoning , isn't it?.

I am holding on to my 5kk shares until I see evidence or signs of accounting fraud or the business not genuine. I don't make a few thousands from investments and run but at least a million bucks fr CSL CSL before saying sayonara to CSexyLady! I do not sway in my conviction but firmly believe in sound reasoning using my mind and not my heart when investing.

Datuk: Everywhere there are conmen - from the East to the West. We all need some luck to succeed, be at the right place at the right time.
So far there is not enough convincing evidence to tell me that CSL is a con game. I am taking a risk - downside of say 5cts from current level.Based on them promising to pay 20% net profit as dividend, the price should move to at least 40 to 50cts. I am holding on till next AGM before deciding next move. Cheers!

Watch Enron "The Smartest Guy in the room" Biggest con in US!

http://www.youtube.com/watch?v=PNIooXEeVu4

Multi-Sport also changing auditor. Game not over yet?
Compare their financials with CSexyLady.Same price level @ 19c :-

https://dl.dropboxusercontent.com/u/28639210/Multi%20Sports%20Holdings.pdf

I must say there is a lot of market manipulation since listing but at this level worth the risk in my opinion.

Kong S Y - Yr figure quoted should be RMB5m not RMB5b. In Fujian Province there is a 3% local tax besides state tax of 25%. Check it out on extract of listing brochure :-
https://dl.dropboxusercontent.com/u/28639210/Income%20tax%20CSL.pdf

You should read up on Special Audit done by FKT Grant Thornton in listing brochure on the financials for yr 2007 to 2011- page 184 item 4 onwards.
Again as I mentioned in my earlier post, who would give an award for tax payment of RMB5m - peanuts! Look at big picture man!

Investors' mindset puzzled me sometime- when CSL trading above RM1 people say it is a good company with good potential. Now at 19c many say it is a fraud.. cash missing.. revenue not reliable. A person is not guilty until proven.

I bought BLD plantations when it was low at RM2.5 and later up to RM10 LOL ! Make kks.