Fu Ji Food (1175) bonds

The faint gurgling shriek we hear... the sound of the fat lady sliding around the s-bend.

"Fu Ji's convertible bonds, of which HK$2.2 billion are outstanding, were being offered for sale yesterday at just six cents on the dollar, while potential buyers were offering four cents, two holders of the securities and an independent broker confirmed.

The bonds traded at 25 cents in the dollar the day after Fu Ji fell into provisional liquidation. But bondholders have turned gloomy after learning that business at the beleaguered caterer has deteriorated drastically since it last met financial reporting obligations nearly a year ago."

An insidious trap sprung by insiders on investors. A glance at their published numbers would have sprung some interest, little do investors know the enterprise was hollowed from within by fraud and a paper facade held up with string and wire. A market cap of $4B (USD$500m) disappears into the pockets of thieves.

There are a lot more out there. Beware.

01175 FU JI Catering - Company Summary

Index Constituent : NA Price (2009/07/28) HKD 7.600 (Suspended) 52W High/Low (HKD) 7.620 / 2.270 Issued Cap (mn shs) 541 Auth Cap (mn shs) 2,000 Market Cap (HKDmn) 4,114 Par Value HKD 0.01 Last Dividend Nil (2009I) Ex Dividend NA Dividend Payable NA Change Price Sector Market Avg Dly Vol 1 Month +0.0% -1.3% -5.1% NA 3 Months +0.0% -9.2% -4.8% NA 1 Year +102.1% +25.6% +57.4% 1,701K Key Financial Ratio (Fiscal Year : 03/2008) Current 2.18X Oper Margin 24.8% LT Debt/Equity 71.3% Net Margin 21.5% Total Debt/Equity 81.2% Return on Equity 15.3% Price/Book 1.38X Return on Assets 7.2%

Year End (MM/YYYY) Earnings (HKDmn) YOY Chg (%) EPS (HKD) YOY Chg (%) DPS (HKD) PER (X) Yield (%) Dividend Payout(%) Book NAV (HKD) 03/2004 77.94 +127.3 0.260 +127.2 NA 29.26 NA NA NA 03/2005 156.05 +100.2 0.470 +80.8 0.038 16.18 0.50 8.09 1.546 03/2006 243.12 +55.8 0.546 +16.3 0.153 13.92 2.01 28.02 2.783 03/2007 351.81 +44.7 0.697 +27.6 0.206 10.91 2.71 29.56 3.550 03/2008 456.16 +29.7 0.857 +22.9 0.241 8.87 3.17 28.14 5.526