Former Hong Kong sister Tan Xiaohuan and her husband Cai Qiangrong ("Slag Brother") opened a tea restaurant "Big Slag Brother Tea" in Kowloon Bay ("Big Slag Brother"), their Facebook page today (20th) posted a post, saying that they plan to buy back Mao Kee Kwai Chung (1716) held 49% of the shares, but was "shocked" by the repurchase price proposed by Mao Kee Kwai Chung, and bluntly stated that if there is no other way, the team may resign en masse.
Leave the scumbag, the big scumbag.
Regarding the content of the post, "Hong Kong 01" has inquired about Kwai Chung, Mao Kee.
As soon as the post came out, the stock price of Maoji Kuiyong, the parent company of "100 Mao", soared, soaring 42% to 0.81 yuan throughout the day, with a turnover of 5.04 million yuan.
This shareholder dispute has also aroused the market's attention to the "scumbag" investment in Maoji Kwai Chung.
"Slag Brother 1996" made a profit of 2.52 million yuan last year.
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"Slag Brother" snack shop bucks the market and attracts gold
Looking through the information, Mao Kee Kwai Chung currently holds "Slag Brother 1996", which operates a chain of snack restaurants, and "Big Slag Brother", which operates a restaurant. and 3.01 million yuan.
Among them, "Slag Brother 1996" is the most profitable, with profits of about 2.52 million yuan and 1.76 million yuan respectively in the past two financial years against the market.
The company is worth more than $12 million based on its latest annual profit and a 5x price-to-earnings ratio.
As for the "big scumbag", the performance in 2022 and 2021 will be very different, from a strong profit of 3.22 million yuan to a slight loss of nearly 320,000 yuan.
It is worth mentioning that Mao Kee Kwai Chung originally also held a 49% stake in the “Big Slag Brother (贰﹚)” that operates the restaurant, but the value of the current share has been “zero.” ii) The loss has exceeded its relevant interest in the company, so the Group no longer has an interest and no further loss is recognised.
Maoji Kwai Chung's annual report shows that "Slag Brother 1996" will still make money in 2022.
﹙Screenshot of Mao Kee Kwai Chung Annual Report﹚
Mao Kee Kwai Chung buys shares at about double the price-to-book ratio
The post of "Big Slag" pointed out that the 1996 Nostalgic Snack Shop and Big Slag Tea Kee were founded in 2014 by Cai Qiangrong, Tan Xiaohuan and the management team of the scumbag.
According to the annual report of Maoji Kwai Chung, the company spent nearly 2.5 million yuan to purchase 49% of the shares of "Slag Brother 1996" at the end of 2018, and invested 1.5 million yuan in November 2019 to set up "Big Slag Brother". The same shareholding is 49%.
In the two investments, Mao Kee Kwai Chung's entry price was slightly higher than twice the price-to-book ratio (PB).
The post of “Big Slag” stated that as early as one or two years ago, Mao Kee Kwai Chung had no representative to participate in the management and operation of Slag and Big Slag.
At the beginning of February this year, Brother Zha had already represented the management team of Zha Brother and formally proposed to the management of Maoji Kwai Chung to terminate the cooperation, requesting to buy shares at the current actual market value under the same conditions as the shareholding in 2018 (only the actual assets and liabilities are calculated). Hui Mao Kee Kwai Chung holds 49% of the shares.
The post continued that the proposal to repurchase shares has been delayed for more than half a year. During this period, I also joined a team of lawyers to assist. Until the beginning of this month, I received the price offered by Mao Kei Kwai Chung in "multiples", not based on the actual sale of shares on the day. As for the price of assets and liabilities, the post described "this price is really powerless and unacceptable to me."
According to the data, as of the end of March this year, the net assets of "Slag Brother 1996" and "Big Slag Brother" were 5.24 million and 6.14 million respectively.
However, since "Slag Brother 1996" still makes money, if the valuation is based on earnings, the asking price is expected to be much higher than that based on the price-to-book ratio.
Mao Kee Kwai Chung has invested in Big Slag as early as the end of 2018.
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