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<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published March 10, 2010
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Yong Xin shares dive on news of CEO's death
Pu Dexing killed in attack; father takes over son's posts of chairman and CEO
By LYNETTE KHOO
THE sudden death of Yong Xin International Holdings' executive chairman and chief executive officer Pu Dexing, described as a brilliant entrepreneur, sent the shares of the company reeling yesterday.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Mr Pu Dexing: Was instrumental in building Yong Xin into one of the leading manufacturers of high-precision steel strips in China since he founded the group in 2000 </TD></TR></TBODY></TABLE>Mr Pu, 46, was allegedly hacked to death in his Wuxi City office last Thursday by a disgruntled employee. Chinese media reports said that the attacker was a 55-year-old salesman upset over a transfer. According to Yong Xin, the attacker has been arrested by the Chinese police and the case is currently under investigation.
Yong Xin shares plummeted as much as 17 per cent after the group lifted the trading halt yesterday. The stock closed the day at 15.5 cents, still down two cents or 11.4 per cent.
The late Mr Pu was instrumental in building Yong Xin into one of the leading manufacturers of high-precision steel strips in China since he founded the group in 2000, and steered the company to a successful listing on the Singapore Exchange in July 2007.
But investors may find solace in the fact that the group will be led by the experienced hand of newly appointed chairman and CEO Pu Yongfa, father of the late Mr Pu.
The new CEO, 68, is said to have enormous experience in the industry - having been general manager of Xishan Zinc Plating Factory from August 1983 to December 2009.
Phillip Securities maintained a 'buy' call on the stock yesterday.
Analyst Chan Wai Chee said in a note that the plant's operations, sales and marketing, and financial management are still unchanged given the continued service of chief operating officer Yuan Xuan Li, chief financial officer Tan Gim Hwee and financial controller Zhu Guiling.
'We are not sure if all these will affect Yong Xin's bid for a coke plant,' said the analyst. 'However, our valuation is based entirely on its steel business, therefore we maintain our 'buy' call.'
Yong Xin has tried to diversify into the trading of coke, coal tar and coking equipment with a new subsidiary, Xuzhou Yongsheng Coking Trading Co, in June last year. But its coke processing agreement with a coking firm in Xuzhou city was terminated in January as the coking firm is winding up due to insolvency.
Yong Xin's core business remains in the manufacture of non-ferrous metal compound material and alloy material.
Besides the relevant industry experience, Mr Pu, father of the deceased, was also party secretary of Huangniba Village, Yuqi Town in China from November 1994 to June 2003, and legal representative of Wuxi Focus Electric Power Co Ltd from December 1995 till now.
Yong Xin's board had on Monday also appointed the daughter of the late Mr Pu, Pu Xiaofang, 23, as executive director of the company to oversee the day-to-day operations of the group.
For FY2009, Yong Xin achieved a net profit of 5.4 million yuan (S$1.1 million), a turnaround from a FY2008 net loss of 12.3 million yuan. Revenue surged as the group added trading of coke and coking products to its activities.
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Yong Xin shares dive on news of CEO's death
Pu Dexing killed in attack; father takes over son's posts of chairman and CEO
By LYNETTE KHOO
THE sudden death of Yong Xin International Holdings' executive chairman and chief executive officer Pu Dexing, described as a brilliant entrepreneur, sent the shares of the company reeling yesterday.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Mr Pu Dexing: Was instrumental in building Yong Xin into one of the leading manufacturers of high-precision steel strips in China since he founded the group in 2000 </TD></TR></TBODY></TABLE>Mr Pu, 46, was allegedly hacked to death in his Wuxi City office last Thursday by a disgruntled employee. Chinese media reports said that the attacker was a 55-year-old salesman upset over a transfer. According to Yong Xin, the attacker has been arrested by the Chinese police and the case is currently under investigation.Yong Xin shares plummeted as much as 17 per cent after the group lifted the trading halt yesterday. The stock closed the day at 15.5 cents, still down two cents or 11.4 per cent.
The late Mr Pu was instrumental in building Yong Xin into one of the leading manufacturers of high-precision steel strips in China since he founded the group in 2000, and steered the company to a successful listing on the Singapore Exchange in July 2007.
But investors may find solace in the fact that the group will be led by the experienced hand of newly appointed chairman and CEO Pu Yongfa, father of the late Mr Pu.
The new CEO, 68, is said to have enormous experience in the industry - having been general manager of Xishan Zinc Plating Factory from August 1983 to December 2009.
Phillip Securities maintained a 'buy' call on the stock yesterday.
Analyst Chan Wai Chee said in a note that the plant's operations, sales and marketing, and financial management are still unchanged given the continued service of chief operating officer Yuan Xuan Li, chief financial officer Tan Gim Hwee and financial controller Zhu Guiling.
'We are not sure if all these will affect Yong Xin's bid for a coke plant,' said the analyst. 'However, our valuation is based entirely on its steel business, therefore we maintain our 'buy' call.'
Yong Xin has tried to diversify into the trading of coke, coal tar and coking equipment with a new subsidiary, Xuzhou Yongsheng Coking Trading Co, in June last year. But its coke processing agreement with a coking firm in Xuzhou city was terminated in January as the coking firm is winding up due to insolvency.
Yong Xin's core business remains in the manufacture of non-ferrous metal compound material and alloy material.
Besides the relevant industry experience, Mr Pu, father of the deceased, was also party secretary of Huangniba Village, Yuqi Town in China from November 1994 to June 2003, and legal representative of Wuxi Focus Electric Power Co Ltd from December 1995 till now.
Yong Xin's board had on Monday also appointed the daughter of the late Mr Pu, Pu Xiaofang, 23, as executive director of the company to oversee the day-to-day operations of the group.
For FY2009, Yong Xin achieved a net profit of 5.4 million yuan (S$1.1 million), a turnaround from a FY2008 net loss of 12.3 million yuan. Revenue surged as the group added trading of coke and coking products to its activities.
</TD></TR></TBODY></TABLE>
