O Chaoda, where art thou?

Annual report 6 weeks overdue.

Why would a few anonymous, disparaged reports of fraud drive one of largest agricultural companies into a lengthy suspension of trading? No idea where Mr Kwok Ho would be but a high probability that when trading restarts, along with the release of earnings, shorts will be burnt.

Why? The time in suspension would be spent on a cash gathering exercise to reassure the auditors that cash is really there. Borrowing on the underground, moving cash around, producing 'books' showing revenues and calling on favors. Weak shorts will be burnt, good time for longs to exit, stronger shorts will survive.

Wouldn't surprise if the chairman conveniently disappears.

PYE 0577.HK engineers entering film business

The board of Paul Y. Engineering are bored with pocket lining engineers and want to hang out with actresses. Now these engineers are intelligent and they intimately know actresses are attracted either with looks/charm, or money and promises of fame. The later options are decidedly easier so what better than to start your own film company!

Original company activities: building construction, civil engineering, development management, project management, facilities and asset management.

New actress attracting idea:

The Board, in its continuous efforts to explore new projects and

potential business developments that stand to benefit PYE and all Shareholders, has made the decision

to diversify PYE’s business through a series of transactions that would involve PYE undertaking a

substantial capital raising exercise, predominantly for the purpose of funding its involvement in a new

joint venture with market leaders, Legendary and the Huayi Group, to develop and produce films,

predominantly in the English language intended for a global audience, based on Chinese history,

mythology or culture.

Note: Third Avenue has a 10.72% holding in PYI. Given Marty Whitman's views on being an "Outside Passive Investor", and his reluctance to engage in any corporate activism, expect him to liquidate this position.

Asian Citrus abandons supplier

With the spotlights well and truly on Mr Ho, Chaoda and his nefarious fertilizer company, Asian Citrus hopes to slink into the shadows...

From the SCMP:

"Asian Citrus said it "decided not to renew the fertiliser supply agreement with Fujian Chaoda Group", a private company that is 95 per cent owned by Kwok, when it expires next June.

The orange grower, which is 13 per cent owned by Chaoda, said: "Sufficient organic fertilisers can readily be sourced from other independent suppliers at competitive prices.""

Expect Asian Citrus to go down with Chaoda.