First Natural (1076) thieves update

Yeung Chung Lung, 55 - Chairman, Yang Le, 31 (Son), Ni Chao Peng, 33 (Son in Law). First Natural scambags.

The ongoing saga of the missing chairman (Yeung Chung Lung) underlines how "cash in the bank" for China companies is not really cash in the bank.

The Chairman Mr Yeung and his inbred scumbags brood, having looted the company are on the run... probably in Canada or Thailand.

Updated regulatory announcement:

"According to the information obtained by the PRC lawyers, a sum of approximately HK$84 million had been withdrawn in November 2008 from the Company’s accounts maintained with Xiamen International Bank. Such withdrawal was not recorded in the books and records of the Company and had not been made known to the existing Board."

The bunch of assholes have company property, probably in the way of seals and stamps and are probably still issuing company cheques.

"The Provisional Liquidators have engaged PRC lawyers to commence legal actions in the PRC

against Mr. Yeung and Mr. Yang Le [Father and Son] for the possible damages to the Group resulting from their illegal possessions of the PRC Subsidiaries’ properties, including but not limited to, the company chops and statutory certificates of the PRC Subsidiaries."

From the unaudited interim June report of 2008, they had $792m RMB cash and cash equivalents in the bank. At least $82m HKD has been confirmed as looted. They have $400m RMB in debt (not including AR). This leaves them with ~$300m RMB in cash. With 1.2b shares in circulation, this leaves 0.25cents/share in cash and ~$400m in PPE.

The red flag was the HUGE increase in AR which was $292m ($167m in 2007), this suggests that at least $130m was "transferred" in preparation for the year end disappearing act.

FN last traded at 0.295. If and this is a big IF, just $82m and the $130m in AR was looted, the NAV of the shares will be around 0.40 cents.

The auditors are: CCIF CPA Limited, 20F Sunning Plaza, 10 Hysan Ave, Causeway Bay, HK. From their home page are "CCIF CPA Limited is a medium-sized and well-established accounting firm rooted in Hong Kong." Rest assured the shareholders are first and naturally "rooted" and not only in HK.