Qingmei

i went to China 2 years ago when I still holding on Qingmei.. I found out many sportwear franchise had closed down or sized down.. and most selling half attires instead of sport shoes..
I read that it's because attires like jersey, t shirt and track pants are more profitable than sport shoes..
I didn't really understand what going on and still holding my Qingmei even when I was back in Singapore..
but somehow I sold all after the founder sold chunks of shares in open market..
well, i conclude that i don't really understand how the China market works.. and somehow it changes so fast that when we know what happened, it's already too late.. (we are so much further than those investors in HK etc)
finally someone saw this.. and seems like Qingmei had stopped production for many months already due to insufficient orders and many machinery had been sold..
 
www.chinalawedu.com/new/201209/majiancha...17204754745868.shtml

Feel sorry for anyone still holding Qingmei. The company ’s revenue fell 85.5% !

1QFY13 was just RMB53.0 million as sales quantity of shoe soles delivered decreased from 13.7 million pairs to 3.0 million pairs.

The business really has suffered.

I wonder if it's ok to take a punt on the stock (5.5 cents) based on the fact that it has zero bank borrowings and cash of RMB566.3 million and cash per share was RMB83.3 cents (approximately 16.7 Singapore cents).

Wonder if it's worth it???

Contrary to most other posts, I view the 3Q announcements as postive. Because it correctly reflects the current state of the sportswear industry in China. I would be worried if the results show otherwise.
 
Like other manufacturing sectors, the sportswear is currently undergoing a severe consolidation, arising from the over-capacity in the past few years. You will be surprised by the number of sportswear brands, big and small in China. Destocking is happening, retail shops are closing down.
 
Qingmei did the right thing by downsizing its operations to reduce costs while going through the winter. The questions to ask: 1/ do you believe in the long term prospects of the sportswear indsutry in China and 2/ do ou believe in Qingmei, being one of the largest shoe sole manufacturer to emerge strong after this consolidation.
 
 

I am still holding 500 lots with QingMei and by now looking at the current price I might get a heart attack soon.
So I have decided to have faith and confidence in QingMei by giving it one or two more years before deciding to admit to the hospital or not.
Just can not bear the loss right now. So blinded. Everyday I keep on praying and praying. Hopefully it works.
Maybe QingMei can give me a pair of new shoe for my new year. Can?... sigh!

If you still have faith in the sportswear indsutry and Qingmei, perhaps you should average down at the current price, and wait out the winter. My observation is that the industry is already starting to turn around slowly. Track the share price of HKSE listed sportswear company and you will know whether spring in coming.
During this time, hopefully the management does not do anything stupid to the cash.
 
And knowing how the Chinese bosses think, once the industry starts to turn around, the controlling shareholder will probably propose a privatisation, so that they can enjoy the fruits of the industry upturn. Ha.

It makes sense to say that if we believe in the company, this is the time to accumulate at this low price, bearing in mind the cash hoard and NAV per share. I personally think there is no fraud and the accounts reflect the true position of the company. When will the industry recover is my only concern.