Organization

CEEI is a member of the "Enigma Network". Mr Xiang had agreed to be criticised and to undertake 24 hours of training on the Listing Rules, but he resigned 11 days after the announcement of the sanctions, and then failed to do the training. Perhaps he plans never to return to the public markets.

An HKEX decision last week led us to discover an inflated acquisition that looks like a cash extraction exercise, possibly to cover an earlier outlay of "earnest money". A sudden surge in profits of the acquired consultancy coincides with a Chinese takeover of troubled soccer team A.C. Milan, or Rossonori, which prints more red ink than black, and a deeply-subordinated loan to its Chairman.

CEEI is in what we call the "Enigma Network". When the investment in Luen Wong (8217) was announced, Webb-site called it a bubble stock trading on a P/B of 321 and a P/E of 861. CEEI said the deal was "fair and reasonable", "a good investment opportunity" and "an attractive investment which will provide satisfactory return". It subsequently crashed, of course. We pointed out the breach of the Listing Rules, for which the company and its directors have now been criticised by the Listing Committee. There was no criticism of the bullish statements made by the CEEI board about Luen Wong.

Proceeds were $18.66m, or $1.046 per share. CEEI bought the shares on 20-Jul-2016 at an average $6.977 per share. At the time, CEEI said that Luen Wong was "a good investment opportunity" and "an attractive investment which will provide satisfactory return". As we said at the time, the Price/Book ratio was 321 and the P/E was 861. How could any reasonable board make such statements?

Sometimes, all you need to tell a story is a picture.

What it doesn't say: CEEI has breached Listing Rules by failing to obtain shareholders' approval in advance of Major Transactions and by failing to announce them for 4 weeks. Each stock is the subject of SFC concentration warnings. We calculate that the purchase of Luen Wong shares is at a P/B of 321 and a P/E of 861. CEEI says the deal is "fair and reasonable", "a good investment opportunity" and "an attractive investment which will provide satisfactory return".

The price for the firm is HK$13m plus NAV.

At last, Lerado (1225) admits that it holds 2% of the China Jicheng (1027) umbrella bubble, still worth HK$561m, which is more than it proposes to raise in an abusive, deep-discount open offer. The circular fails to say why they don't just sell the CJ shares instead. We call on shareholders to save themselves and vote against.

The vedor was later named as Mr Wan Tak Choi and the price was HK$1m.

Following a Webb-site complaint to regulators, CAID has revealed 3 holdings, including umbrella maker China Jicheng (1027), still trading at over 70x NAV. CAID expects the investments to contribute a positive return in the near future, but doesn't say why. Meanwhile Lerado (1225) hasn't said how it made similar gains. Is it also in the umbrella bubble?

Pour yourself a coffee and digest this long article as we investigate several ongoing abusive "open offers" and placings as well as show you who's been making out in multi-billion-dollar bubbles. We call on regulators and rule-makers to take action.

The 12.67m shares were purchased in the IPO at $1.10, before the 25:1 stock split, which converts to 316.75m shares at $0.044.

The average price per share was $1.62. At 31-Dec-2014, L & A had equity of $136.73m, or $0.034 per share. So the price is about 48x book value of the OEM cashmere clothing maker. In our view, China Env Energy has just invested in another bubble, following its investment in Suncorp (1063). The question is, why?

63m of the 540m shares went to China Environmental Energy (0986)

So don't say you weren't warned!

The vendor is Main Global Group Ltd, the owner of which is not disclosed. It had previously tried to sell the whole of Starfame to China Properties Investment (0736).

CPI had already paid US$19m (HK$148.2m) cash deposit in 2010. The vendor is not returning that, but is giving them HK$25m plus HK$123.2m of promissory notes issued by CEEI (0986) which it recieved in return for selling 10% of the same target to CEEI, namely Pure Power Holdings Ltd, 6 days ago.

...of which HK$123.2m is in promissory notes.