Although expected the results would not be good but never expect that the share buyback is only 10k lots. Why, does management expecting share price to drop even more??
The Company wishes to announce that Chin Well Service Centre Sdn. Bhd. (“CWSC” or “the Plaintiff”), a wholly-owned subsidiary of CWHB had, on 23 November 2020, filed a Writ of Summon and a Statement of Claim dated 23 November 2020 in the High Court of Malaya at Pulau Pinang against the Defendants through a firm of lawyers acting on its behalf.
Particulars of the claims against the Defendants and circumstances leading to the filing of the Writ and Statement of Claim dated 23 November 2020
(a) The Plaintiff placed orders of various steel products (“Products”) with the 1st and 2nd Defendants on diverse dates in 2019 and 2020 for the Defendants to deliver the Products to NBH Service Centre Sdn. Bhd. (“NBHSC”).
(b) On the Defendants producing Invoices accompanied by delivery orders affording evidence of the delivery of the Products to NBHSC the Plaintiff was induced to pay the Defendants the aggregate sum of RM26,340,980.00 (“the Purchase Consideration”) for the Products.
(c) The payment of the Purchase Consideration to the Defendants was made in discharge of the Plaintiff’s obligations as a buyer and it was only upon NBHSC denying receipt of the Products purportedly because of the non- delivery of the Products that the filing of this action has become necessary.
(d) To date, the Defendants have not denied receiving the Purchase Consideration without delivering the Products to NBHSC as required under their contract with the Plaintiff
(e) Wherefore, the Plaintiff is claiming the sum of:
RM15,288,100 against the 1st Defendant; RM11,052,880 against the 2nd Defendant; and Such further and other relief and order the Honorable Court deems fit.
Financial and Operational Impact
There is no significant impact on the Group's cash flow and operation except that the revenue of CWSC will be lower in the current financial year ending 30 June 2021 as compared to the immediate preceding financial year ended 30 June 2020.
Expected losses to the Group, if any
The Group may be exposed to a loss of RM26,340,980.00 in the event CWSC fails to recover the sum from the Defendants.
Hmm. Is Chin Well functioning like a trading house to arrange for other trading house to deliver products to their customer? To pay 26mil for fake delivery orderz is quite mind blowing...
On top of that, it's a writ of summon against TWO companies.. what are the chances these two companies produce fake delivery order to the 3rd party.. hmm..
@Raining Nobody knows, I have already factored in a 50/50 win loss for this business. That will be approximately 13m. I just cannot fathom how two different companies chose to deceive ChinWell at the same time for a whopping 26m and succeeded. Surely, there are some s.o.p on verifying the received goods from the customer before paying out to the supplier right?
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
EngCCCC
257 posts
Posted by EngCCCC > 2020-01-19 16:34 | Report Abuse
@ thesteward noted