September 15, 2014 at 4:29 pm #27394
Chaoda has posted a new time line for resumption of trading on the HKex:October 31, 2014 at 12:31 pm #27396
Latest from Chaoda. Looks like the audit should get done this time.November 17, 2014 at 2:09 pm #27398
Chaoda has published its Audited 2011 results. Looks like it may be on track to resume HKex trading by March.December 19, 2014 at 5:25 pm #27399
2012 Audited returns:January 9, 2015 at 5:42 pm #27306
2013 Audited returns:January 30, 2015 at 5:44 pm #27307
Looks like it may start trading on the HKex next week:February 2, 2015 at 3:45 am #27308
It is trading again on the HKex!!!February 4, 2015 at 12:07 pm #27309
Yes, Chaoda is trading again. It opened at HKD1.10 on 2nd Feb and is now trading at HKD0.40 on the Hong Kong Stock Exchange under the ticker 0682.hk (can be followed on Yahoo Finance). It has had astounding trading volumes in the past few days.
My original investment is now down 93.61%, but I’m philosophical about it. Could this be a buying opportunity?
For those that are interested in trading with a broker in Hong Kong, I can recommend checking out http://www.boom.com. It is an online broker that I’ve been with since 1998 and have only positive comments about. They allow non-residents to open trading accounts without much hassle. Hong Kong is a tax-free environment as well, which is a nice bonus.February 8, 2015 at 10:26 pm #27310
Looks like everyone with frozen shares is now dumping them en masse. The question is – what is it really worth? I don’t guess we’ll get much guidance from Chris any more on this, although he really owes it to us.February 27, 2015 at 2:35 am #27312
From a quick look at the 2014 accounts (to June 2014), you see a net loss per share of RMB 0.59 – not a good look, but better than the previous year’s loss of RMB 0.98. However, there’s a load of asset backing. Book value of NTA/share is RMB 4.6, so the current share price is a 94% discount to NAV. Hmmm…
No idea if the book values are meaningful, though I don’t imagine the auditors would have dared to sign off, given the history of this business, if they’d thought that asset values were overstated. However, if you ignore all the fixed assets and just look at working capital, the net liquid asset value/share is RMB 0.51, so share price today is about a 50% discount to liquid asset NAV. Hmmm again…
Also, there’s virtually no debt and cash equivalent to 100 day’s sales. Another hmmm…
What you do see is that they’re shrinking the business, but at a steady, rather than frantic rate – book value NTA/share fell by 12% in 2014
My take on this is that it’s an asset play, so a good time to take Bill’s advice. Sit tight and do nuthin’! I’m off to the beach…February 28, 2015 at 11:01 pm #18222
Further update – interim results to Dec-14 now available on http://www.chaoda.com.hk/pic/201522813591680739.pdf
Result shows more trading losses, so the question is: how fast can they get costs down as they shrink capacity? NAV still a huge multiple of share priceOctober 7, 2015 at 11:55 pm #27313
Quick update for anyone still hanging in out there: Annual results to June 2015 show enormous losses of RMB 6.7bn. This included the complete writeoff of their RMb 1.66bn investment in plantation forests, which were reclassified as “eco reserves” by the PRC government, therfore unavailable for harvesting. This writeoff comes after Chaoda had invested RMB 250m in those same forests earlier in the year, so underlines the risks of investing in the resource sector in the PRC
Much of the rest of the loss comes from writeoffs, but they are still showing an operating loss from trading.
Asset cover is still a multiple of share price, but no sign of daylight in trading, so I’m baling out and will remember some learning lessons. Better late than never!
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