China’s Lady Buffett and HK-listed white spirits company Silver Base wrote off more than HK$600 million worth of sales that it could not recoup

Drink firm has little to cheer as ban hits
Victor Cheung
Tuesday, July 02, 2013

SilverBase Dukang

Economic slowdown and a ban on liquor consumption at official banquets sparked losses of more than HK$1 billion for the year to March 31 at Silver Base (0886). The distributor of several famous brands of white spirits, or baijiu, also wrote off more than HK$600 million worth of sales that it could not recoup. For the 2012-13 fiscal year, losses hit HK$1.13 billion, compared with a profit of HK$926 million in the previous fiscal year. Revenue slumped 87percent to HK$390.19 million. The losses include HK$650 million impairment and write-off loss for trade receivables, and some HK$100 million for inventory provision. In addition, inventories doubled to HK$1.22 billion. Liquor bans on government departments have “brought a direct and severe hit to the sales of high-end baijiu” brands such as Wuliangye, the company said. But Wuliangye Yibin, the maker of upmarket baiju, still saw 50percent in bottom line growth in the same period. Since 2009, chairman Liang Guoxing has been reducing his stake from 67percent to less than 50percent. New World (0017) group founder Cheng Yu-tung has also downsized his stake in Silver Base from the second half of last year, from more than 8percent to less than 5percent. But Liu Yang, chairwoman of Atlantis Investment Management, spent some HK$258 million to buy the firm’s shares from September and now holds a 14percent stake.

‘CHINA’S LADY BUFFETT’: Latest Dealings

Written by Andrew Vanburen (China Correspondent)

Tuesday, 13 November 2012 09:19

Main reference: a Chinese-language piece in Sinafinance
“CHINA’S LADY BUFFETT,” mainland Chinese investor Liu Yang’s alter ego, is a high-stakes and high-profile presence in the Hong Kong shares market.
So how has she been negotiating the slumping A-share market and the much more robust bourse in Hong Kong this year?
As per usual, investors look for successful peers and often follow their moves lock, stock and barrel.
Liu Yang and her sharebuying behaviors are no exception.
Recently, it has been revealed that in Hong Kong’s gradually rising capital market – unlike the decidedly bearish bourse in Mainland China – “China’s Lady Buffett” has put some 230 million yuan into a handful of key counters.
The Atlantis Investment Management firm at which she serves as chairperson has done significant trading into these stocks:
Heavy buying into alcohol distributor Silver Base Group Holdings Ltd (HK: 886), and complete selloffs of Shandong Weigao Group Medical Polymer Company Ltd (HK: 1066) and beauty mask play Magic Holdings International Ltd (HK: 1633) along with two other long-held shares by Atlantis.
Around three weeks ago, Liu Yang threw some 140 million yuan to chase 45 million shares, representing a significant increase in portfolio outlay.
But shortly following the move, she sold off around 81.1 million shares of satellite communication firm China All Access Holdings Ltd (HK: 633) for some 130 million yuan – significantly less than the 150 million yuan she originally paid for the shares.

Liu Yang sold off a significant holding in beauty products firm Magic Holdings.  Photo: Magic

Following the selloff, Liu’s stake in China All Access shrunk to 5.71% from 12.4%.
“China’s Lady Buffett” also sold off significant shareholders in brokerage firm Cinda International Holdings (HK: 111) and construction material playBaoye Group Company(HK: 2355).
Many investors new to the Hong Kong market – or unfamiliar with the superstar investors from Mainland China – may not put too much “stock” in the wisdom of mimicking the market moves of the movers and shakers in the bourse like Liu Yang.
But it is often useful and sometimes extremely profitable to follow in the footsteps of the fast and furious investors.
As long as you get in while the fishing’s good.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: