Posted by Sslee > 2017-05-13 20:26 | Report Abuse

Subject D: ADVERTISEMENT EXPENSE.
1. Did the management give any justification with financial study in spending RMB 146,226,000 on advertisement (30% of total revenue for the year)? ( Yes / No )
2. Did these advertisement expenses discuss in BOD meeting? ( Yes / No )
3. Did the BOD approve this spending? ( Yes / No )
4. Any BOD raises any concern of spending such a large sum on advertisement? ( Yes / No ) If yes who raise the concern and what is the concern?
Answer:

5. Will this be one off event or re-occurrence events? ( One off / re-occurrence / no idea )
6. RMB 58.5 millions and RMB 93 millions advertisement cost incur in May and November 2016. Did Management and BOD done a proper study of revenue increase/distributors increase after spending RMB 58.5 million in May and still felt justified to further spend another RMB 90 million on November? ( Yes / No )
7. On key audit matters and how the matter (advertisement expense) was addressed in the audit.
How confident are you after going through the steps taken to address the advertisement expense that no element of fraud was committed? ( 100% / 75% / 50 % / 25% / 0% )
8. Should a more detail forensic audit be conduct on advertisement expense to eliminate any suspicious of fraud? ( Yes / No )
Subject E: ACCOUNTING FRAUD.
1. What are the reasons major share holders manage Listed Company is able to commit fraud?
A. Because they are confident that external financial audit cannot discovered the fraud, as they have unscrupulous accountants working hand in hand with them to cook the book and get away with it? ( Agree / Disagree )
B. Because the reward is great and the punishment is light when caught with accounting fraud? ( Agree / Disagree )
C. Because Cash is kind and they believe they can bribe their way out of any punishment? ( Agree / Disagree )
D. Because SC lack the power to enforce mandatory Forensic audit on those suspicious financial account and enforce severe punishment on those caught with fraud? ( Agree / Disagree )
E. Because the major share holder knew they can bulldoze/outvote any objections from the minority shareholder during AGM/EGM? ( Agree / Disagree )
F. Human greed and selfishness in this materialistic word had corrupted the moral compass of old fashion trustworthiness and integrity with rich is glory where business owners are ready to commit despicable and shameful acts of cheating/deceit/fraud/stealing/robbing the poor just to be rich? ( Agree / Disagree)
G. In your professional Auditor / Independent directors’ opinion with current bylaw, independent directors, internal audit, external Financial Audit, varies committee and etc it is still possible to commit fraud? ( Yes / No )
H. As an accountant by profession, are you train to spot/detect accounting fraud? ( Yes / No )
I. Do you see signal/tale tell sign that CSL is suspect to commit accounting fraud? ( Yes / No )
J. As an external Auditor/ Independent director that uphold professional integrity, what do you feel if company you audit/sit as BOD was later found to commit fraud? (Angry / Feel Cheated / Helpless / Sad / Guilt / Remorse/ Wanted to punch the face of those fraudsters / Empathy with the suffering of minority shareholder / Wish that you should have rejected this job) or any other feeling?
Answer:

Posted by Sslee > 2017-05-13 20:29 | Report Abuse

Dear All,
Hope to see all at the AGM.
Thank you

Posted by Wow123 > 2017-05-15 12:28 | Report Abuse

Ask si fatt chai Ceo why you keep the money so much? maybe you want to keep inside under 6`6" underground near future.

Posted by Wow123 > 2017-05-15 12:28 | Report Abuse

during AGM meeting

Posted by WARRANTGOOD > 2017-05-16 12:21 | Report Abuse

Warrant CSL-WA is starting to move now with good momentum. Very cheap at 0.5 sen and still 4 months to expiry date of 18/9/17. It could easily climb to 1 sen, 100% profit or even to 3 sen (600% profit) as predicted by some optimistic analysts. This must be due to the recent proactive action of Sslee, an experienced management guy, to boldly confront the management and directors of CSL in the upcoming AGM. CSL AGM on 26/5/17 is just ten days away, so now we are seeing upward movements in the price of mother CSL. Even after the not so good QR (good revenue, big losses) released on 28/2/17 the mother CSL price rises from 7 to 9 sen then retreated back to rest and recuperate at around 7 sen. CSL is a good China stock, with factory operations, stationery product and cash rich with profit for some financial quarters. But it is stingy with dividend and does not seem to care for the welfare of minority shareholders and retail investors. Many of the China companies listed on Bursa are on PN7/GN3 list but not CSL, meaning that it does not have financial and reporting problems. So the penny stock of CSL is definitely much better than the other China penny stocks. But some issues with CSL as pointed out by Sslee are so big and real as an elephant in a room, like the previous loss is due to 30% advertising. How very can advertising expenditure is so high? Any proof? Also, the issue of transparent reporting with facts versus creative accounting needs to be addressed. We do not want to end up with losses as in Xinquan. Thus, I fully support Sslee's initiative and action to right things at CSL for the beneftit of retail investors. I believe many will have this feelgood chi on CSL and support Sslee during the AGM. But sorry, I won't be able to attend this AGM. Maybe next year.

Posted by ngssbbb > 2017-05-16 15:09 | Report Abuse

DONT BUY,

Posted by celaka > 2017-05-16 15:24 | Report Abuse

bird counter

Posted by WARRANTGOOD > 2017-05-18 09:34 | Report Abuse

CSL also going to rise up like XDL. AGM and 10% private placement coming.

Posted by WARRANTGOOD > 2017-05-18 10:30 | Report Abuse

Sorry, not PP but share buy back of 10%. Should be good news as it shows the confidence the management in the company. Then will lift up the mother price of 7 sen and CSL-WA of 0.5 sen. Expect price surge for CSL before AGM next Friday.

Posted by teo44 > 2017-05-21 09:38 | Report Abuse

thank you, Sslee, i will support you all the way during AGM...

Posted by volks2 > 2017-05-22 11:44 | Report Abuse

PE 4.91 and the NTA is RM1.43 but wtf the stock is not moving at all?????

Posted by kingcobra > 2017-05-22 11:50 | Report Abuse

stocks from China listed in klci....TAKE EXTRA PRECAUTIONS WHEN INVESTING ....TRY AVOID IT B4 U GOT BURNED!

Posted by WARRANTGOOD > 2017-05-22 13:36 | Report Abuse

So now we know at least two of us here at i3 will be at the upcoming AGM. teo44, hope you can give strong support to Sslee during the AGM. And more interested parties could also come and give support and positive ideas. Once again, do remember that CSL is a cash-rich company with factory operations in China, production and sales of their Sakura, Nachi and Foldersys brand stationeries in many countries and making money for many financial quarters. Its multinational directors and top management of Hong Kongers, Indonesians and Malaysians is a plus for it to operate across borders and different cultures. The proposed 10% share buy back if approved could be a catalyst that could drive up its share price in the near future. Meaning the company can pump in profit back for company operation and fund wisely used for company growth. However, the main issue of company not willing to give dividend and share profit with minority shareholders needs to be addressed during AGM. Company also needs to be transparent about their operations in faraway China and take corporate governance seriously, including Malaysian financial reporting practices. Management and substantial shareholders need to take care of minority shareholders and retail investors. Do not treat us like kids.

Posted by WARRANTGOOD > 2017-05-22 13:36 | Report Abuse

By the way, we see now with the many high profile visits of Prime Minister Datuk Seri Najib Tun Razak to China the China penny stocks of Bursa are moving up. Like XDL, Xinquan and Xinghe. In the case of XDL it could be due to its recent corporate exercise of share consolidation and soon after that good news announcement. Or maybe because the brother of the PM is a director there. So a high tide lifts up all boats as they say. Next will be CSL's turn. Many of the China stocks are in PN17/GN3 status but CSL is not. So its financial status is healthy and financial reports are regular. Its last QR released on 28 Feb 2017 was not that encouraging but the stock price managed to rise up to a peak of 9 sen in April before retreating to a respectable 7 sen now. So with recent resurgence of investor confidence in China stocks and corporate exercises at CSL like share buy back, some analysts are bullish about CSL and giving it fair value of 20-50 sen, still realistically lower than its published NTA of RM1.34. Even its CSL-WA expiring in a good 4 months away in September 2017 is expected to rise to 5 sen or more, once the postives start to factor in. Soon, CSL could turn out to be the real hidden gem of Bursa.

Posted by WARRANTGOOD > 2017-05-22 17:58 | Report Abuse

Good show by CSL today. A whopping rise of 7.14% to 7.5 sen, and even testing the higher level of 8 sen. Good volume and momentum of 2.8 m shares traded. So after the mother share it will be CSL-WA's turn to vrooom up.

Posted by celaka > 2017-05-22 19:01 | Report Abuse

talk bird NO 1

Posted by celaka > 2017-05-22 19:01 | Report Abuse

PN 17 soon counter

Posted by Wow123 > 2017-05-23 19:38 | Report Abuse

waiting si fatt chai ceo to say something during AGM

Posted by Lee Yih Yeong > 2017-05-25 18:40 | Report Abuse

qtr result good but share keep drop like no tomorrow

Posted by Wow123 > 2017-05-25 18:53 | Report Abuse

must ask si fat chai CEO why drop no future ?

Posted by celaka > 2017-05-25 19:10 | Report Abuse

fxxk counter

Posted by WARRANTGOOD > 2017-05-25 22:43 | Report Abuse

All the best to CSL AGM tomorrow Fri 26 May 2017. QR for 1Q 2017 released today 25 May as mentioned earlier by Lee Yih Yeong, enough time to digest before AGM. Good quarter revenue of RM 25.9m and also good PBT of RM 22.9m. What more can we ask for. Hope this good QR will rocket up the price of CSL shares. Today mother CSL increases 6.7% from 7.5 sen to 8 sen, the week very encouraging from 7 sen to 8 sen. Steady collection observed for CSL-WA at 0.5 sen, should be its turn to go up soon. To recap, stationery business is very competitive in China, but being among the locations of lowest production cost, the China-produced CSL stationeries should be able to find market in other countries, especially higher-cost developed countries. Thus, CSL should be having recurring income and steady sales for its stationery product for years to come. This is the main reason for my faith in CSL and keep investing in it, come rain or shine.

Posted by Wow123 > 2017-05-26 09:06 | Report Abuse

today AGM must ask Si fat Chai CEO

Posted by Lambar > 2017-05-26 11:16 | Report Abuse

Amazing! Until today..still got ppl believed the cash is real!

Posted by Lambar > 2017-05-26 11:16 | Report Abuse

空壳公司

Posted by Sslee > 2017-05-26 17:03 | Report Abuse

Subjects CLS AGM Dated 26-5-2017.
Dear Chairman and CEO of CSL Mr. Chan Fung,
Thank you for trying to explain the un-explainable but anyhow my appreciation to you for understanding our minority shareholder wants is dividend, a better share price that reflect the true intrinsic value of the company and forensic audit on bank balance.

Dear Independent Director Mr. Herman Widjaja,
Thank you for promising us that you will bring out the request of Forensic Audit on bank balance, proposed to company to give Dividend and formulated Dividend policy on your next BOD meeting on August 2017. My grateful thank to you for standing up for us and voice out our concerns.

Dear CFO Mr. Chin Siew Weng,
You had done an excellent job as a translator and my thanks to you for agreeing that is time now to adopt a formal dividend policy.

Dear Auditor Mr. Su Chun Keat,
Thank you for confirming majority of bank balance is in Agricultural Bank of China Putian, and agreed that once and for all, do a forensic audit on bank balance to dispel the allegation that bank balance is not real. You are ready to do this forensic audit once you get a go ahead from BOD.

Dear Company Secretary Miss Tan Bee Hwee,
Thank you for taking the minute of the AGM and diligently taking note on the important discussion/promise.

Dear my fellow shareholders who attended the AGM,
Thank you for your support and hopefully we will able to hear some good news from the BOD during the Q2 result on August 2017. We shall meet again next year and my hope is that it will be a joyful moment rather than another heartbreaking, cursing and scolding session.

Dear Bursa Malaysia Corporate Surveillance and Governance Division: Mr. Eddie Yeo and Miss. Chong Siew Yeen,
Thank you for your valuable advice extended to me. I included in attachment the questionnaires. Feel free to have a look and answer some of those questions. I end with repost of my closing Thank You note to all.
We are here today to seek the truth the whole truth and nothing but the truth so help us god. If there is any fraud committed, it is our duty and responsibility to put an end to such practices. Let us uphold justices, integrity and have compassion to the suffering of other. The truth and justice shall prevail.
My heartfelt thank to all for taking your time in answering these questions thoughtfully and truly.
Once again thank you very much.

Yours sincerely,
Lee Soon Sheng

Posted by Lambar > 2017-05-26 18:15 | Report Abuse

Dear SS LEE,

Any assurances and promises can be given during AGM; but one basic and fundamental question remains unlogical is no controlling shareholder would allowing share price much lower than cash on hand to the level of csl today.

The wolves outside csl would keep buying until the level of mandatory takeover being triggered and either force the existing controlling shareholder to buy back the stake or make a general offer to emerge as the controlling shareholder in a no way out battle.

I understood from your earlier write up you were a senior management in multi national corporation. I am surprised your latest write up today appears non compatible with your experiences. You might not be aware your write up here would induce hopes to new comers in bursa to jump into csl

Posted by Lambar > 2017-05-26 18:26 | Report Abuse

This is tantamount to influence ppl to commit financial suicide.

You had made a silly mistake earlier. You tried to protect your right...it's pretty alright to have hope despite 0.0001%.

BUT YOU SHOULDN'T DIRECTLY OR UNINTENTIONALLY TO WRITE SOME COMFORTS THAT PLEASE YOUR EGO THAT CERTAINLY INFLUENCE PPL TO JUMP INTO CSL. THAT'S IMMORAL.

WHAT YOU HAVE WRITTEN ABOVE WON'T HAPPNED IF YOU MAINTAIN YOUR SENSIBLE LOGIC.

RE-READ THE FINANCIAL STATEMENT...APPLIES YOUR COMMON SENSE...YOU COULD DISCOVER ILLOGICAL THERE. I M PRETTY SURE YOUR EXPERIENCES WOULD TELL THE TRUTH

Posted by Lambar > 2017-05-26 18:35 | Report Abuse

Another simple logic..if the existing controlling shareholder can't even protect his interest as mentioned above, what make you think he can protect the interest of minorities like you???

SS LEE,

YOU'RE TOO EGO! WHAT MAKES YOU BELIEVED YOUR EFFORTS HIGHLIGHTED ABOVE WOULD BE CARRIED OUT ? DO YOU THINK THE CONTROLLING SHAREHOLDER DIDN'T KNOW WHAT TO DO TO PROTECT HIS INTERESTS AND NEED YOUR SUGGESTION TO CARRIERS OUT? DON'T YOU THINK YOUR EGO ASSUMED YOU ARE THE SMARTEST AND ALL OTHERS ARE IGNORANT?

Posted by Lambar > 2017-05-26 18:37 | Report Abuse

Ego is the greatest self-enemy! That's what god wanted you to acknowledge today!

Posted by Lambar > 2017-05-26 18:42 | Report Abuse

Ego kills all common sense and making people comfort with their mistakes and distance from the path for mistake correction!

Posted by JackMa123 > 2017-05-26 18:49 | Report Abuse

Lambar -> Then what effort you put in during the AGM?!

Posted by Lambar > 2017-05-26 19:00 | Report Abuse

Nothing...acknowledged making mistake and cut loss!

Never keep single degree of hope with csl!

Posted by Sslee > 2017-05-26 19:02 | Report Abuse

Dear Lambar,
Thank you for reminded me that my posting in i3 forum might induces hopes to new comers in bursa to jump into CSL. I have no intention to miss-lead others so that I can profit from it.
The above posting is an actual email I send to those I address, so as to put pressure on them to remember what they had said and do what they had promised. They will see me again next year.
For all new comers I am sorry to say I am seeking the truth to be told as only the truth will make a closure to this never ending cycle of hope and disappointment. With a closure then everyone can move on.
My advices to all new comers never fall into any red chip company that show a lot of bank balance the current bank balance audit only required a confirmation with the branch manager where the account is kept. Unfortunately that confirmation can be fraud if you bribe the branch manager.
I had done my part and I can only hope Bursa/SC/Shareholders and everyone involve in financial institute can play their part in eradicating and put an end to such fraud practices.
Thank you.

Posted by Lambar > 2017-05-26 19:04 | Report Abuse

Like a money games that promises 20% return monthly would not be a genuine real game.....i don't believes cash in csl today but share price lingering 7-8 cents!

Posted by Lambar > 2017-05-26 19:07 | Report Abuse

Lingering 7-8 cents for such a long times and the controlling shareholder cum management didn't do anything about it....


With such a huge cash on hands. ...the company is still owing money to director???? Is that make sense to you?

Posted by Lambar > 2017-05-26 19:09 | Report Abuse

SS lee....thumb up for your clarification.


TQVM

Posted by celaka > 2017-05-26 19:31 | Report Abuse

buang duit ke mulut buaya

Posted by Tanst > 2017-05-28 07:47 | Report Abuse

Dear SsLee,
There is one thing that I wish you can get clarification from Bursa. In the AGM the directors mentioned a deal with 新华书店, the largest book retail chain in china, to sell the stationery in the stores. However the deal was turned down by Bursa, can you use your contact to find out if there is such case and why it was disapproved.

Posted by Sslee > 2017-05-28 09:56 | Report Abuse

Dear Tanst
Thank you for the suggestion.
It is done.

Dear
Independent Director Mr. Herman Widjaja,
Company Secretary Ms. Tan Bee Hwee,
Auditor Mr. Su Chun Keat,
It was a pleasure in meeting you at the CSL AGM. You come across as Man and Woman of integrity and doing your professional job with dignity and pride. I take my hats off to you.
I need to make my recollection on the important points we had discussed during the meeting:
We do discuss that after the fire accident the business was badly affected and we do loss a lot of our customers thus management had to work very hard to rebuild the business. You mention that the management had tried to have some business tie-up/deal with the China biggest bookstore (Xinhua Bookstore) but the tie-up/deal was not approved by Bursa. May I know when it happens? And did bursa give the reasons for their disapproval?
On advertisement expenses, the auditor confirmed it was with reputable advertisement agency for Bill Board advertisement at Airport. The BOD is unable to do a ROI on advertisement expense as this is for long term business prospect. The BOD now understands our concern and agrees that this kind of expense should be channeled for Dividend payout. As such BOD will not approve any more advertisement expense in near future and all afford will be on how to improve share holder return.
Please correct me if my recollection is not accurate.
Thank you.

Dear Bursa Malaysia Corporate Surveillance and Governance Division:
Mr. Eddie Yeo and Ms. Chong Siew Yeen,

Is it a norm/must that any big business tie-up/deal needs the approval of bursa?
I will need your further clarification once I received the response from CSL BOD.
Thank you. Have a good weekend.

Yours Sincerely,
Lee Soon Sheng
28-5-2017

Posted by Lambar > 2017-05-29 10:20 | Report Abuse

Full of fantasy !

Posted by Loan > 2017-05-29 12:33 | Report Abuse

Sslee ... good effort. TQ

Posted by miker > 2017-05-29 14:31 | Report Abuse

CAP - China Automobile Part already 0.01 cent...

Posted by Lambar > 2017-05-29 15:17 | Report Abuse

Almost all companies from mainland adopted creative accounting and evuatually manifest through all types of stories.

Csl- factory get burnt

HB global- non compliance quality of foods

Qinquan- inferior non compliance shoes

Cap- unable to submit financial result timely...

LOL

Posted by miker > 2017-05-29 15:46 | Report Abuse

It is creative con-ning

Posted by Shines > 2017-06-02 20:17 | Report Abuse

In business tied up or cooperations, where we need bursa's approval

Posted by Shines > 2017-06-02 20:19 | Report Abuse

If its is merger and take over then approval is required.

Posted by Sslee > 2017-06-02 21:09 | Report Abuse

Dear all,
The reply on behalf of CSL BOD I received today.
Answer: CSL began negotiation with XinHua since June 2016 on a business plan, ie. to establish retail space in XinHua Bookstores. Due to the additional time required to obtain all the necessary information as required by Bursa Malaysia Securities Berhad (“Bursa Securities”) to prepare the proposed announcement to Bursa Securities and Xinhua Bookstores did not grant further extension of time to the Company. In view of the above issues, the Board decided to take a prudent stand to call off the said business arrangement with Xinhua Bookstores. Please be informed that Bursa Securities did not reject the proposed business plan, but it was called off due to the reason stated above.
Answer: The Board will consider the other options to improve shareholders’ returns. However, the advertisement expenses is part of the operating expenses to improve its revenue, to expand its market shares, to increase their sales, to enhance goodwill and to introduce CSL’s new products in the market, so that the distributors and the buyers can get to know the existence of CSL’s products.
The substantial advertisement cost incurred in 2016 was mainly due to electronic billboard advertisements that were put up in all the major airport cities in China to raise consumers’ awareness of the Company’s products.
Thank you.

Posted by teo44 > 2017-06-04 19:48 | Report Abuse

Dear Sslee,thank you for your efforts and sharing.you did very good job, no matter what is the outcome, great pressure had been press on them.once again THANKYOU.

Posted by Sslee > 2017-06-04 21:06 | Report Abuse

Dear teo44,
The truth can be very ugly and painful as what had happen with Xingquan. Be prepared for it. Anyhow the truth will set us free so that everyone can move on. I had written another email to them as follow:

Subject: Bank Balance.
Dear Bursa Malaysia Corporate Surveillance and Governance Division:
Mr. Eddie Yeo and Ms. Chong Siew Yeen,
Auditor Mr. Su Chun Keat,
During the CSL AGM Auditor had given me a written reply on the above subject.
1. Majority of bank balance is in Agricultural Bank of China Putian.
2. The audit and verification of bank balance as follow:
a. Personally visit branch to obtain confirmation from bank.
b. Obtain bank confirmation from the counter.
c. Get bank statements print on spot.
I had consulted a friend in China and his opinion is that bank balance can be fraud if.
1. You bribe the bank branch manager to do your bidding?
2. Borrow money from black-market money lender syndicate and bank in the money during audit and withdraw the money and pay back the syndicate after the audit with fees?
Can bursa now give directive/advice/guidelines to auditor to redo a more comprehensive/extended audit on bank balance to proof beyond any doubt that the bank balance is real and is rightfully belonged to the company?

Dear
Independent Director Mr. Herman Widjaja,
Company Secretary Ms. Tan Bee Hwee,
Excuse me for bringing up the subject of Bank Balance now. I am sure you are going to discuss this subject and dividend issues on the coming BOD meeting. The recent happening with many red chip companies (Xingquan, Maxwell, CAP and etc) had made me nervous and impatient. Please accept my apology.

Dear BOD and Management of CSL,
It is an insult and humiliation beyond word that the company cash and bank balance is Rm 95 cents per share and the public only price the CSL market price at Rm 7 cents (Market closed price on 2-6-2017). Please give your full cooperation and work closely with Bursa and Auditor to proof beyond any doubt that the bank balance is real and it is rightfully belonged to the company.

Dear all,
Have a Happy and Enjoyable weekend. Please give your response after the week end.
Thank you

Yours Sincerely,
SS LEE
3-6-2017