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福麒國際 Message Board

  • summascriptus summascriptus Sep 8, 2013 9:33 PM Flag

    Annual Meeting

    I did not get onto the call for the meeting until 8:57 am local time.
    At that point the speaker was enumerating the legal actions against the company and he concluded by stating that the company intends to resolve the suits.

    He then presented some high level financial information (preliminary and unaudited).

    Sales were $500M in 2009, $700M in 2010, $700M in 2011, $500M in 2012 and on pace for $500m in 2013.

    Gross Margins have declined from over 12% in 2008 to the mid single digits currently.

    Net Income was positive in 2009 and 2010, negative in 2011, break even in 2012, and currently on pace for a loss in 2013.

    The cash position has gone from over $150M in 2009 to $14M in July 2013.

    He noted that there has been some inventory buildup.

    6 questions were asked and answered (except for the last question) taken from previously provided questions that were representative of questions asked by stockholders.

    1. Chong stood for election to the board because he is barred from serving on a US Public Company, but this does not apply to Fuqi any more.

    2. The fine paid to settle the SEC litigation was a penalty and therefore was not covered by insurance and this definition was agreed to by Fuqi and the SEC.

    3. The board is not committed to a single plan for shares. 3 options mentioned are 1) keep it as is 2) realist 3) go private. The board's intention is to maximize long term value for all shareholders.

    4. Marcum LLP is still the auditor and is still working on the 2009 financials. The company will produce all financials when they are completed.

    5. The receiver was appointed in July and was in attendance at the meeting.

    6. The company will provide information to stockholders in the future at the annual meeting and on the company web site.

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    • "$150M in 2009 to $14M in July 2013"

      Must have been quite a lost to reduce cash by $136 million lost! Sales seem to be the sale from 2009-2013 around $500-$700 million.

      "He noted that there has been some inventory buildup."

      Maybe they purchased gold with the cash! But the loss is very tough to take since gold has been going up since 2009! They must of hedge wrong to have a lost when gold prices are going up!

      Sentiment: Hold

    • Additional questions from the audience:

      Verified $14M in cash at the end of July and that although the company is running at a loss this cash and existing bank lines are sufficient to operate the company at this juncture.

      Litigation is still outstanding and the company intends to resolve it.

      The financial reports are NOT being held up by the cash transfer situation.

      Why is it taking so long to release financials? That is a complex matter that requires more time to answer in another forum (it was not stated what that forum will be).


      Can anyone report what happened in the beginning of the meeting?
      Perhaps a transcript will show up somewhere.