SUNWAY INTERNATIONAL HOLDINGS LIMITED
Man charged with HK$125m money laundering involving loans from Sunway (0058)
ICAC, 11-May-2022
We note that the defendant, Lam Chung Kan (aka Lin Songgen), was also the purported owner of the subscriber in a 20% general mandate issue in March 2019. 4 weeks later, he flipped most of those shares to Oscar Chim Sai Yau. In today's charges, Mr Lam was the "personal assistant of a businessman" who is not named, and the alleged 5 bad loans from Sunway to the businessman occurred between 2015 and 2017. We have no idea who the businessman is.
ICAC, 11-May-2022
We note that the defendant, Lam Chung Kan (aka Lin Songgen), was also the purported owner of the subscriber in a 20% general mandate issue in March 2019. 4 weeks later, he flipped most of those shares to Oscar Chim Sai Yau. In today's charges, Mr Lam was the "personal assistant of a businessman" who is not named, and the alleged 5 bad loans from Sunway to the businessman occurred between 2015 and 2017. We have no idea who the businessman is.
Sunway (0058) confirms MD Li Chongyang was arrested and bailed by ICAC
Company announcement, 16-Aug-2021
Company announcement, 16-Aug-2021
SFC and ICAC joint operation on listed company's suspicious money lending activities
| ICAC statement
SFC, 13-Aug-2021
Media report that the company is Sunway (0058). This probably relates to a pile of 6 loans totalling about HK$130m made in 2016/17 and impaired in 2019. The 2019 accounts stated "The Group has noticed that 6 borrowers (and their guarantors, if any) failed to repay" and "the enforceability of the collaterals, if any, was quite difficult". Also in 2019, HK$100m of "earnest money" paid in 2017 for an aborted acquisition was fully impaired. We hope the ICAC/SFC will investigate that too. A current and a former ED and 3 others have been arrested.
SFC, 13-Aug-2021
Media report that the company is Sunway (0058). This probably relates to a pile of 6 loans totalling about HK$130m made in 2016/17 and impaired in 2019. The 2019 accounts stated "The Group has noticed that 6 borrowers (and their guarantors, if any) failed to repay" and "the enforceability of the collaterals, if any, was quite difficult". Also in 2019, HK$100m of "earnest money" paid in 2017 for an aborted acquisition was fully impaired. We hope the ICAC/SFC will investigate that too. A current and a former ED and 3 others have been arrested.
Sunway (0058) issues 124.8m (20%) new shares to single subscriber at $0.136/share
| Disclosure of interest
Company announcement, 13-Mar-2019
The BVI subscriber is owned by "Mr. Lam Chung Kan". The subsequent disclosure of interest uses an alternate name of "Lin Songgen". The subscription completed on 27-Mar-2019. He wasn't a long-term shareholder: on 25-Apr-2019 he sold 137.24m shares to Oscar Chim Sai Yau, cutting his holding to just 8m shares, at $0.17.
Company announcement, 13-Mar-2019
The BVI subscriber is owned by "Mr. Lam Chung Kan". The subsequent disclosure of interest uses an alternate name of "Lin Songgen". The subscription completed on 27-Mar-2019. He wasn't a long-term shareholder: on 25-Apr-2019 he sold 137.24m shares to Oscar Chim Sai Yau, cutting his holding to just 8m shares, at $0.17.
The six invalid directors of Sunway (0058)
Our analysis shows that 6 people appointed as directors before the 2015 AGM failed to stand for election at the meeting and hence ceased to be directors, so Sunway currently only has 4 valid directors. We also look at the acquisition in relation to which one of the invalid directors and the Guarantor are now being sued by Sunway, which has reported them to the Zhuhai PSB. (15-Oct-2015)
Our analysis shows that 6 people appointed as directors before the 2015 AGM failed to stand for election at the meeting and hence ceased to be directors, so Sunway currently only has 4 valid directors. We also look at the acquisition in relation to which one of the invalid directors and the Guarantor are now being sued by Sunway, which has reported them to the Zhuhai PSB. (15-Oct-2015)
CSFB's Toxic Convertibles
Webb-site.com lifts the lid on the toxic convertibles scam in HK, in which small, mostly naive companies surrender control over future equity issuance to an investment bank, whose principal interest is to lock in a profit by converting bonds on a rolling basis at a deep discount to market and selling the resulting shares. CSFB has led the way down this value-destroying path, with Merrill Lynch recently joining the fray. We estimate that the banks make a gross profit on money raised of about 31%, and the average stock price has fallen 30% since a toxic convertible was launched. If you are a listed company, just say no. If you are an institutional investor, take your business elsewhere. (8-Jun-2005)
Webb-site.com lifts the lid on the toxic convertibles scam in HK, in which small, mostly naive companies surrender control over future equity issuance to an investment bank, whose principal interest is to lock in a profit by converting bonds on a rolling basis at a deep discount to market and selling the resulting shares. CSFB has led the way down this value-destroying path, with Merrill Lynch recently joining the fray. We estimate that the banks make a gross profit on money raised of about 31%, and the average stock price has fallen 30% since a toxic convertible was launched. If you are a listed company, just say no. If you are an institutional investor, take your business elsewhere. (8-Jun-2005)
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