QEX - QEX Logistics

[Ggcc]

Does anyone smell a Wynyard

[Sideshow Bob]

Oh no!! According to the latest announcement re Insurance: "The Board has reviewed QEX's insurance position, and at this stage does not
consider that QEX is able to mitigate its potential losses through any claim
under any policy of insurance"
Seems rather implausible, as does the entire situation :(
Disc: never held

Just seems almost infeasible! In other words they had no insurance......shambolic.

Our company had a situation where product was stolen in China a few years ago. Took us a while to work through, but got a payout of sorts.

Where is their governance?

Interesting last sentence of today announcement, with the word "misappropriated", makes it sound like an inside job:

QEX is engaging legal counsel in China to explore all available avenues of legal recourse against third parties in China with a view to mitigating its losses incurred as a consequence of the inventory being misappropriated.

[Ace]

How are they going to fare in 11/11 in the next week or so? Their biggest trading day, with 4M lost inventory? The whole plan was to have stock there as Chinese preferred buying already landed product. 4M of that is gone...

I was a top 10 shareholder in this company and took a huge L on this. Have since sold out.

[DownTownJr]

Stock price is taking a hammering. When there is blood on the streets...

[Rep]

Theft from a bonded warehouse that has a handful of employees should be an easy crime to solve. Every person and every company has insurance surely. OK I am trying to be positive here but hopefully I am right.

Interesting, in that everyone who's posting here has leapt to the presumption that this is theft or that a crime has been perpetrated. Lots of discussion about physical controls such as fences, CCTV and that it is a customs bonded warehouse or that management didn't have appropriate insurance.

I don't know what has happened. But I can postulate an alternative based on what happened elsewhere and have have resulted in a loss that was five-fold at AUD$17.2m in 2006.

API is an Australian Health and Beauty manufacturer, distributor and retailer and operates a number of brands including Priceline Pharmacy.

In 2006 after the implementation of a new IT system, year end stock takes revealed that over $17m of working capital (mainly inventory) was unaccounted for - it had simply disappeared. What the system said was on the shelf in the warehouses was not physically in existence and after reviewing everything the loss of $17.2m had to be taken up in their account as one-off expense. Forensic accountants were brought in but the new ERP system didn't help them locate or trace where all the working capital had gone with a broker asking the CEO at the AGM, where did it go and did you check under the cushions on the couch? The CEO left soon after but to this day no-one really knows what happened to the inventory of $17.2m.

One theory is that the ERP system integration didn't work as intended. To simplify this, let's say a chemist orders some stock from API, a pick list is generated at the warehouse and the warehouse picks the stock at the warehouse and sends it off. Now the chemist store will receive the stock, put it on their shelves and sell it. If the ERP system doesn't record that the order was picked, packaged and processed then it will never know the stock actually left the warehouse, and if the ERP system never records the stock left the warehouse then it won't invoice the items.

In my experience, most pick lists don't show the price just the items and the count (unless they are pick list/invoices) so the chemist won't pay until they get the invoice which they will match against the packing slip/picklist. If the ERP system doesn't generate an invoice then the chemist won't pay for the stock and the packing slip/pick list will stay in the drawer.

At some stage someone might notice that there are bunch of 'unfulfilled orders' that never got processed and noting they went back in time, then delete them off the system. Even then, no-one would know whether all, some or none of these unfulfilled orders were actually sent.

The net result is that all the stock left the warehouse legitimately, but there's no record that those items left, no change to the inventory records and no billing of the items. And if the orders were recorded as never fulfilled and deleted then there's very little that can be traced EXCEPT if someone tried to match the number of courier labels to the number of orders processed but still wouldn't necessarily know what went out merely where it went.

So if this is what happened at API there would few records to show so maybe it's a plausible explanation. It also wouldn't be an insured loss if there was no evidence of actual theft.
In the case of QEX, we don't have the pertinent details - we have talk of inside job, organised crime etc because of the size of the loss but none of us including the management of QEX seems to really know.

[Balance]

Just seems almost infeasible! In other words they had no insurance......shambolic.

Our company had a situation where product was stolen in China a few years ago. Took us a while to work through, but got a payout of sorts.

Where is their governance?

Interesting last sentence of today announcement, with the word "misappropriated", makes it sound like an inside job:

QEX is engaging legal counsel in China to explore all available avenues of legal recourse against third parties in China with a view to mitigating its losses incurred as a consequence of the inventory being misappropriated.

In other words, it’s not theft which would be covered by insurance r?

Getting the smell of some kind of dispute or failure to pay bills?

[winner69]

Did all the infant formula get misappropriated

[winner69]

Didn’t they raise some new capital at 60 cents not that long ago ...ouch

[sb9]

Wonder if that Sistema man Lindsay is still invested or bailed out??

[whatsup]

Dipped my toe @ .20 !

[Ace]

Interesting, in that everyone who's posting here has leapt to the presumption that this is theft or that a crime has been perpetrated. Lots of discussion about physical controls such as fences, CCTV and that it is a customs bonded warehouse or that management didn't have appropriate insurance.

I don't know what has happened. But I can postulate an alternative based on what happened elsewhere and have have resulted in a loss that was five-fold at AUD$17.2m in 2006.

API is an Australian Health and Beauty manufacturer, distributor and retailer and operates a number of brands including Priceline Pharmacy.

In 2006 after the implementation of a new IT system, year end stock takes revealed that over $17m of working capital (mainly inventory) was unaccounted for - it had simply disappeared. What the system said was on the shelf in the warehouses was not physically in existence and after reviewing everything the loss of $17.2m had to be taken up in their account as one-off expense. Forensic accountants were brought in but the new ERP system didn't help them locate or trace where all the working capital had gone with a broker asking the CEO at the AGM, where did it go and did you check under the cushions on the couch? The CEO left soon after but to this day no-one really knows what happened to the inventory of $17.2m.

One theory is that the ERP system integration didn't work as intended. To simplify this, let's say a chemist orders some stock from API, a pick list is generated at the warehouse and the warehouse picks the stock at the warehouse and sends it off. Now the chemist store will receive the stock, put it on their shelves and sell it. If the ERP system doesn't record that the order was picked, packaged and processed then it will never know the stock actually left the warehouse, and if the ERP system never records the stock left the warehouse then it won't invoice the items.

In my experience, most pick lists don't show the price just the items and the count (unless they are pick list/invoices) so the chemist won't pay until they get the invoice which they will match against the packing slip/picklist. If the ERP system doesn't generate an invoice then the chemist won't pay for the stock and the packing slip/pick list will stay in the drawer.

At some stage someone might notice that there are bunch of 'unfulfilled orders' that never got processed and noting they went back in time, then delete them off the system. Even then, no-one would know whether all, some or none of these unfulfilled orders were actually sent.

The net result is that all the stock left the warehouse legitimately, but there's no record that those items left, no change to the inventory records and no billing of the items. And if the orders were recorded as never fulfilled and deleted then there's very little that can be traced EXCEPT if someone tried to match the number of courier labels to the number of orders processed but still wouldn't necessarily know what went out merely where it went.

So if this is what happened at API there would few records to show so maybe it's a plausible explanation. It also wouldn't be an insured loss if there was no evidence of actual theft.
In the case of QEX, we don't have the pertinent details - we have talk of inside job, organised crime etc because of the size of the loss but none of us including the management of QEX seems to really know.

You know, even if this is the case - the Chinese govt will note that 4m stock has left the bonded warehouse and will require customs payments. There are multitudes of cases of this where the warehouse is held liable for duties for stolen goods as it is now within the counties economy.

[Brain]

Dipped my toe @ .20 !

You are a brave man whatsup. As a holder I hope you have made a wise and profitable decision.

[ziptie]

Must have bought my allotment. Im out for now couldnt take it any more been holding my nerve for a long time now. Been in since 1.50 master class on how to loose money without a meth habit.

[forest]

Didn’t they raise some new capital at 60 cents not that long ago ...ouch

Yes, there was a recent cap raise.
And it seems no director, CEO or CFO took part in it. Looking back does that seem unusual???

[winner69]

Not a good time for the CFO when this things happen

Only been in the job just over a year

[dabsman]

Maybe time to change the title of this thread? Listing with NO future?

I looked at this closely at around $1 and just couldnt understand why I'd put my money here and not a Mainfreight or Freightways. Ended up putting money in Barramundi for the extre divvy and warrrants so I passed on all of them. Unfortunitely cant buy everything I want and sometimes that is a good thing...

[Sideshow Bob]

Dipped my toe @ .20 !

Can sell now and make 10% ;)

[Ggcc]

It is a huge risk to add more to this share than I have. I reiterate I feel a Wynyard happening to those in two weeks or a miracle.

[Leftfield]

It is a huge risk to add more to this share than I have. I reiterate I feel a Wynyard happening to those in two weeks or a miracle.

Ever heard the saying, "never buy a share in a downtrend?"

(just saying.)

[TargetRoad]

$4M of stock is ballpark 500 pallets on infant formula.. fair amount to go 'missing'

[winner69]

$4M of stock is ballpark 500 pallets on infant formula.. fair amount to go 'missing'

Big demand for infant formula and it’s been hard to get it (A2 thread)

[nztx]

$4 mill is alot to lose without someone knowing something

Only 50% of their average reported closing Y/E inventory for 2019 & 2020

And around 1/3 of their reported Y/E 2020 Shareholders Funds

Latest report - they seem to be saying an Insurance Recovery not thought possible

Now surely someone in a Warehouse would be very aware that things were badly astray
between what Stock Records & Physical in hand Stocks looked like ? ;)

Were they asleep or were Management & Top Brass having a nap or just chose not to
disclose it until the problem couldn't be ignored ? ;)

[Brain]

$4 mill is alot to lose without someone knowing something

Only 50% of their average reported closing Y/E inventory for 2019 & 2020

And around 1/3 of their reported Y/E 2020 Shareholders Funds

Latest report - they seem to be saying an Insurance Recovery not thought possible

Now surely someone in a Warehouse would be very aware that things were badly astray
between what Stock Records & Physical in hand Stocks looked like ? ;)

Were they asleep or were Management & Top Brass having a nap or just chose not to
disclose it until the problem couldn't be ignored ? ;)

None of what’s been reported makes sense. Rightly or wrongly I am holding onto the shares that I have and will wait for the facts to come out and then make a decision. What puzzles me is that this is a small business and I would expect Ronnie to have his finger on the pulse. To be blind sided by a $4m “miss appropriation “ totally puzzles me.

[whatsup]

Building a new base ( for the moment ) @ .30, anyone interested ?

[whatsup]

Building a new base ( for the moment ) @ .30, anyone interested ?

Building off the .30 base atm which is a good sign .

[Getty]

None of what’s been reported makes sense. Rightly or wrongly I am holding onto the shares that I have and will wait for the facts to come out and then make a decision. What puzzles me is that this is a small business and I would expect Ronnie to have his finger on the pulse. To be blind sided by a $4m “miss appropriation “ totally puzzles me.

You have touched on what I see as a high risk of this co.
Ronnie is a major shareholder, and mover & shaker in this business.
If he drops dead tomorrow, or has an eye off the ball moment, whats the succession plan and oversight?
Its a bit like a one trick pony.

[nztx]

You have touched on what I see as a high risk of this co.
Ronnie is a major shareholder, and mover & shaker in this business.
If he drops dead tomorrow, or has an eye off the ball moment, whats the succession plan and oversight?
Its a bit like a one trick pony.

Exactly - further more it highlights risks of a Company Warehouse in China operating far away from NZ
& top brass stuck within closed borders here in NZ for time being.

That aside, so far on what the market has been fed, it would appear $4 million or roughly 1/2 their
Y/E inventory has up and walked out of the Company operated Chinese warehouse, all by itself and
no-one reportedly knows or saw anything .. or did they ? ;)

[nztx]

.. Meanwhile 7 days further on .. No sign of any spilt Milkpowder and all quiet.

Not even the slightest squeak or murmur out of QEX .. like if we all go quiet
the issue might be forgotten & go away (that is until next reporting date) ;)

[Ggcc]

.. Meanwhile 7 days further on .. No sign of any spilt Milkpowder and all quiet.

Not even the slightest squeak or murmur out of QEX .. like if we all go quiet
the issue might be forgotten & go away (that is until next reporting date) ;)
Im out for now at a loss until I see some upside. I lost believing in a story that never existed once (Wynyard). I don't want it to happen by accident again.

[nztx]

Im out for now at a loss until I see some upside. I lost believing in a story that never existed once (Wynyard). I don't want it to happen by accident again.


Out before jumping in .. fortunately

the perils of global trade - Asia - China - i's not dotted t's not crossed risk
in current times - with a small low resourced operator pulling Low margin on Volume
(some stock obviously on loan etc) I'm afraid raised a Red Flag here

Far better picks elsewhere & in other markets ATM

[Getty]

Before anyone buys this 'bargain', do some research on EHH, Eagle Health, suspended on ASX, even if you only read thread on Hot Copper.
A chain of retail stores, that didnt even exist, and a murky world of trading.

Beware, or you b. well may wear the loss.

Dr JPG.

Figures dont lie, but liars may figure.

[winner69]

Out before jumping in .. fortunately

the perils of global trade - Asia - China - i's not dotted t's not crossed risk
in current times - with a small low resourced operator pulling Low margin on Volume
(some stock obviously on loan etc) I'm afraid raised a Red Flag here

Far better picks elsewhere & in other markets ATM

Yes ATM a far better pick

[sb9]

WHAT A LOAD OF CRAP THEY KEEP DISHING OUT!!! :t_down::scared:

[Getty]

Its not the year of the cat, but with dog year luck, the cat with the white whiskers will get the blame for the missing milk.

[kiora]

The missing tin of pineapple chunks!
https://www.youtube.com/watch?v=44CiUH1KPr4&list=PLkcgo2RnjCXT142K6iT8XXZxrHs4r7naV&index=54&t=0s

[nztx]

Anyone any wiser on where the $4.3 million disappeared off to ? ;)

[whatsup]

This ann does leave so many questions unanswered one of which is , who is the actual owner of the missing cargo, is it QEX or its icustomers.

If it is the customers is there an obligation for QEX to compensate the customer or is that customers insurance policy ( if it had one ) enough to cover any loss or does QEX have to compensate the customer for its loss ?

[Ace]

The fact that it's singles day and is the biggest sales event - yet QEX tipped off that current inventory levels is enough to service demand is a sign of diminished sales in my view. Infact, in China the sales run for the 11 days from the start of Nov. The reason we had such inventory was 1) Chinese preferred to buy stock already in China and 2) In preparation of Singles day. The fact that half of our inventory went missing yet we can meet demand operating on that...doesn't sound optimistic in my view.

[Ltw]

You make a lot of sense there Ace

[winner69]

This ann does leave so many questions unanswered one of which is , who is the actual owner of the missing cargo, is it QEX or its icustomers.

If it is the customers is there an obligation for QEX to compensate the customer or is that customers insurance policy ( if it had one ) enough to cover any loss or does QEX have to compensate the customer for its loss ?

The way they state accounting impacts you’d have to assume QEX owns the stock that’s gone missing

[Ace]

The way they state accounting impacts you’d have to assume QEX owns the stock that’s gone missing

Owned*

And it would be good to have clarity on if they have to pay duties for stock that have left the bonded warehouse. As I understand, from my research - the warehousing facilities are responsible and customs usually expect this payment even if stock has been stolen.

[winner69]

Owned*

And it would be good to have clarity on if they have to pay duties for stock that have left the bonded warehouse. As I understand, from my research - the warehousing facilities are responsible and customs usually expect this payment even if stock has been stolen.

Indeed ..owned is the correct tense.

[sb9]

The fact that it's singles day and is the biggest sales event - yet QEX tipped off that current inventory levels is enough to service demand is a sign of diminished sales in my view. Infact, in China the sales run for the 11 days from the start of Nov. The reason we had such inventory was 1) Chinese preferred to buy stock already in China and 2) In preparation of Singles day. The fact that half of our inventory went missing yet we can meet demand operating on that...doesn't sound optimistic in my view.

The cynic in me believes that the stock is siphoned off the premises and sold in black market. Whether its done by insiders to pocket money personally at shareholders expense remains to be seen. Lots of smoking mirrors here and Ronnie needs to come clean or else it will be curtains down.

Disc - No longer hold

[nztx]

Indeed ..owned is the correct tense.


The Loss appears to be owned .. from their releases..

but wouldn't the same position be the case for borrowed stock, consignment stock etc etc ,
where obligation to pay for it exists ?

but then again we've all heard of some curious scenarios on stocks - losses, invisible stocks,
accounting & valuation stuff-ups on the inwards and or outwards movement, or just a simple
matter of stock in transit not being accounted properly.


The past champion of curious stock issues / mysteries would have to none other than STU - wouldn't it
and a Cap Rase then ensued, if I'm not mistaken a few years back to bridge the fiscal hole .. ;)

[whatsup]

So when do we know what the results of "singles week " has been?

[whatsup]

With its M C of $18 million is QEX a take over target, Mainfreight, or other companies in the freight business ?

[ziptie]

How tho if Ronnie holds most of the stock?

[sb9]

With its M C of $18 million is QEX a take over target, Mainfreight, or other companies in the freight business ?

I highly doubt that with so many dodgy characters in that outfit, can't trust them. And what's moat anyway for a takeover flavour, bunch fishheads!!!

[CROESUS U.T.]

I highly doubt that with so many dodgy characters in that outfit, can't trust them.
suspect MF has dealt with a fair share of dodgy characters in the past, and it does have an ex-polly on its board

[nztx]

How tho if Ronnie holds most of the stock?


Exactly - who knows - he may hold on until a burning ship burns down to the waterline trying to rescue things as well

[nztx]

So when do we know what the results of "singles week " has been?


Will they be buying tins of white stuff in their singles or by the dozen to store for the future & when they become unsingle
then start multiplying ? ;)

[sb9]

What a shame on the part of Management to issue further cheap options to Chair and other Directors while the company is doldrums and haven't fully come out clean on recent debacle, not a great look on your part Ronnie :t_down:

[Getty]

With its M C of $18 million is QEX a take over target, Mainfreight, or other companies in the freight business ?

With Qex's demonstrated ability in Warehouse clearance, there will be HUGE demand from freight forwarders and The Warehouse itself.

[Ace]

With Qex's demonstrated ability in Warehouse clearance, there will be HUGE demand from freight forwarders and The Warehouse itself.

12117

You think so? Have a look at their reviews and customer service. Disappointing. Google easycom express or qexpress and have a look for yourself at what customers have to say. And ontop of that the issue of shares to directors at this stage? Poor form. Glad I excited. Can’t believe I was a top 10 shareholder in this mess. Already recovering my losses from other businesses with better potential.

[sb9]

12117

You think so? Have a look at their reviews and customer service. Disappointing. Google easycom express or qexpress and have a look for yourself at what customers have to say. And ontop of that the issue of shares to directors at this stage? Poor form. Glad I excited. Can’t believe I was a top 10 shareholder in this mess. Already recovering my losses from other businesses with better potential.

Highly questionable and dodgy set of Directors and Management imo.

[kiora]

17-2-18

I wouldn't touch anything C.E . is envolved in with a barge pole.

Rinse and repeat !

[Getty]

With Qex's demonstrated ability in Warehouse clearance, there will be HUGE demand from freight forwarders and The Warehouse itself.

For those that cant see it, my comment was tongue in cheek.
The actual clearance was not an event any s/holder would desire.

[kiora]

For those that cant see it, my comment was tongue in cheek.
The actual clearance was not an event any s/holder would desire.

Whew you had me concerned there !

[Sideshow Bob]

https://www.nzx.com/announcements/364151

QEX Logistics Limited (NZX: QEX)Monday, 30 November 2020NZX LimitedWellingtonTrading result for the six months ended 30 September 2020The Board of QEX Logistics Limited (NZX: QEX) has today announced the unaudited half-yearfinancial results of the business for the six months ended 30 September 2020 (HY2021).

Overview

● COVID-19 related diagou sales decline and changing consumer habits in China affectedrevenue and profit for the six-month period
● The market remains challenging with squeezed margins continuing to create significantpressure across the sector● QEX continues to diversify channels to meet changing consumer purchasing trends in China.Two new channels, livestream and direct-from-warehouse sales were launched and theAustralian international parcels business now operating in trial phase
● Investigations remain ongoing into the missing (and presumed stolen) inventory from theShanghai-based warehouse. QEX continues to work closely with China Customs, authoritiesand a specialist legal team
● It has been determined that the inventory went missing prior to 30 September 2020, which isreflected in the HY2021 results
● Revenue for the period was $19.4 million compared to $27.8 million in the priorcorresponding period. The net loss after tax for the period was $5.9 million which includes a$4.3 million loss before tax relating to the missing inventory. Without the loss of theinventory, the net loss after tax would have been $1.5 million.

Commentary
Market conditions for the first six months of the 2021 financial year were challenging for QEX. Thiswas largely due to the continued impact of COVID-19 which includes the significant reduction indaigou sales due to border closures and changing Chinese consumer purchasing behaviour.Additionally, towards the end of the 2020 financial year (FY20), there was significant stockpiling ofinfant formula in China. While QEX benefited from this increase in sales in FY20, the 2021 financialyear (FY21) commenced with an oversaturation of product in the market. In line with reports fromour sector peers, this is likely to have contributed to the softening of sales early in HY2021.With concerns around COVID-19 being transferred via imported products, the lack of daigoubusiness, lockdown periods and transport challenges, many consumers are preferring to purchasemilk powder products from within China, either directly from bonded warehouses or throughlocal online retailers.

2While the Board’s current position is that the pressures created by COVID-19 are temporary anddiagou trade will eventually return, the entire sector still faces uncertainty about when this willbe. It is expected to continue to impact results until alternative channels are fully established orborders re-open.

As the Board has been communicating for some time, market conditions remain challenging,especially for milk powder, with lower margins continuing to cause pressure right across the sector. The logistics business was impacted in the six months, though not to the same extent asinfant formula. Market prices doubled due to increased airfreight costs, resulting in highermargins on smaller international parcel volumes.These external challenges are expected to continue into the second half, alongside the ongoingimpact created by the $4.3 million of inventory missing (and presumed stolen) from the Shanghaibased warehouse during HY2021.Despite the focus required to manage the Company through these extraordinary externalcircumstances, some progress was made towards the QEX growth strategy in HY2021.

Thisstrategy remains centred on diversification and included the launch of two new sales channelsduring the period.Recently, QEX launched a live streaming sales function, a Chinese e-commerce model that isgaining rapid popularity with Chinese consumers worldwide and in August, direct-fromwarehouse sales were launched in Shanghai.

At the end of HY2021, direct warehouse sales fromShanghai were generating between 5% - 8% of the Company’s milk powder sales.QEX’s Australian operations were fully established in late FY20, with the expectation that profitwould start to be realised in the first half of FY21. Due to the onset of COVID-19 shortly afterhowever, sales have been much lower than forecasted, with Australia delivering $3.5 million in revenue for the six months to 30 September 2020. In late September, the Australian internationalparcels business launched in an initial trial phase for a targeted group of customers.$1.7 million of capital was raised in HY2021 which has, for the most part, been used for workingcapital and supporting the Australian growth strategy.

Financial performance

Total revenue for the six months to 30 September 2020 was $19.4 million compared to $27.8million in the prior corresponding period. Net loss after tax was $5.9 million compared to a netprofit of $0.3 million in the prior corresponding period. This net loss includes the $4.3 millionbefore tax impact from the loss of inventory which it has been determined to have occurredduring the period.

Without the loss of the inventory, our net loss after tax would have been $1.5million.Milk powder sales were $15.8 million, compared to $24.0 million in the prior correspondingperiod. Revenue from international parcel delivery, logistics and customs clearance was $3.5million, compared to $3.7 million in the prior corresponding period.The gross margin % for HY2021 was 4.9%, compared to 10.8% for the same period last year.EBITDA for the six months was a loss of $5.7 million, down $6.6 million compared to a profit of$1.0 million in the previous period.

EBITDA for the current period includes the $4.3 millioninventory loss. Without this loss of inventory, EBITDA would have been a loss of $1.3 million.3The loss of inventory with a value of $4.3 million increased operating expenses by $4.3 million,reducing EBITDA and net profit before tax by the same amount. At this time the Group is onlyrecognising the benefit of tax losses to the extent they can currently be utilised. As a result, taxlosses of $4.0 million, with a tax effect of $1.1 million, have not been recognised in the result forthe period and will be recognised as the Group generates taxable profit in the future.The loss of inventory currently reduces equity and total assets by $4.3 million. This will reduce to a$3.2 million impact as the tax losses are used to offset taxable profit in the future.

At the end of HY2021, working capital was $6.1 million, compared to $10.5 million in the priorcorresponding period. Equity was $7.9 million, compared to $12.3 million in the priorcorresponding period.QEX continues to trade normally and is able to meet customer demand from current inventories.Update regarding missing inventoryIn late October 2020, QEX announced to the market that it was investigating the loss of a quantityof milk powder and infant formula from its leased Chinese Government Customs BondedWarehouse in Shanghai.QEX undertook a thorough assessment of the missing inventory, including a comprehensivereview of purchase and sales transactions throughout the current financial year and concludedthat the value of the missing inventory is $4.3 million. It was determined that the loss of theproduct occurred prior to 30 September 2020 and this is reflected in the HY2021 results.

As a result of the loss of inventory and the financial result for the 6 months to 30 September 2020,QEX’s subsidiary, New Y Trading Limited, which owns the inventory that has beenmisappropriated, and is party to the QEX group of companies’ principal bank funding facility, has,not meet two of its financial covenants comprised within the loan facility documentation. TheCompany’s bank has confirmed with QEX that there will be no change to the existing bankingfacility arrangement. They have also confirmed that the bank will provide a waiver for noncompliance with financial covenants for the quarter ended 30 September 2020.Investigations remain ongoing into the missing product, which is presumed stolen.

QEX is activelypursuing several avenues to determine the exact circumstances leading to, and personsresponsible for, the removal of these goods from the Shanghai premises. This includes workingclosely with China Customs and local authorities. A specialist legal team has been appointed toconduct further investigations. In response to the investigations conducted by QEX, China Customs has informed the Companythat a full audit of custom cleared goods, both into and out of the bonded warehouse will beconducted.The legal team acting for QEX in China continues to explore all available avenues of legal recourseagainst third parties in China in relation to this loss of inventory.

The Company’s previouslycommunicated insurance position remains unchanged at this point in the investigation process,with coverage for the loss incurred unlikely under any policy of insurance.QEX holds adequate inventory levels and this loss has not hindered the Company’s ability toservice all customer ordering requirements, including the recent Double 11 event.

4Outlook QEX continues to face uncertain and unstable sector dynamics arising from COVID-19. The Boardis closely monitoring the ongoing implications and demands of this new environment. These external pressures, alongside the impact of the missing inventory, present a challengingsecond half for QEX which will require significant focus and careful management. Strengthening customer confidence following the inventory loss, and associated adverse media coverage,remains a key priority.Over the coming six months, the Board will continue to assess all opportunities to improve thecurrent financial position of the company and to progress the diversification strategy. The Board thanks our investors and the QEX team for their continued support over an incrediblytough six months ENDS

[sb9]

Absolute shocker of a result!!!

[nztx]

Meanwhile just more or less a month after discovery of large empty space in warehouse in China Land,
QEX Board are still dribbling away, with little further progress on how large gap in Warehouse happen .. ;)

[Ggcc]

I wish them the best but I opted out some time ago. It smells like Wynyard all over. I hope not for existing shareholders.

If they can get things sorted and move forward who knows I may join their share register again

[sb9]

Meanwhile just more or less a month after discovery of large empty space in warehouse in China Land,
QEX Board are still dribbling away, with little further progress on how large gap in Warehouse happen .. ;)

Nothing but a Corporate Theft of highest order....

[flyinglizard]

there is only one way to bring SP to north. sell off the company to an Australian Logistical company which wants to diversify the trade risk.

[ziptie]

QEX - how to run a company in to the ground by ronnie xue

[Pablo123]

I don’t understand all the doom and gloom on this company. Through rapid growth this company has maintained profitability and met its growth strategy.

Yes this year is looking like it’ll be a poor year, but look 12-24months down the line when daigou are back. The company’s rapid response to other revenue streams will still be there PLUS the daigou revenue there from pre covid. Add to the fact that Australian operations and live streaming will be well up and running by then this company could reach $100m revenue by 21/22.

Are there risks with small cap stocks? Yes. Has there been mistakes made on the way? Yes, particularly the theft.

But this company and its management are still top notch in my books. Strong hold from me and let’s hope the $1.50 we saw two years ago comes back within the next two years for us patient folk!

[Pablo123]

I don’t agree with all the doom and gloom on this thread. Yes there have been some head winds recently, in particular the ‘theft’ and impacts on daigou from Covid.

However, the story on the rise of this company has been incredible. From home garage to warehouses in 3x countries and revenue of over $60m, whilst maintaining profitability the whole time over the 10years. Looking beyond the short term pain, I think the quick response to diversify over Covid including pushing the live-streaming has been commendable. Maintaining these new revenue streams when the daigou return has huge potential for even stronger revenue growth. Couple that with growth into other SE Asian countries and that they made $10m in November last year I can’t see why they couldn’t reach $100m revenue within the next few years.

High risk for sure given its recent head winds and small market cap. However, management have not behaved in a manner to put me off and in fact the recent declines has made it even more appealing!

[Food4Thought]

I don’t agree with all the doom and gloom on this thread. Yes there have been some head winds recently, in particular the ‘theft’ and impacts on daigou from Covid.

However, the story on the rise of this company has been incredible. From home garage to warehouses in 3x countries and revenue of over $60m, whilst maintaining profitability the whole time over the 10years. Looking beyond the short term pain, I think the quick response to diversify over Covid including pushing the live-streaming has been commendable. Maintaining these new revenue streams when the daigou return has huge potential for even stronger revenue growth. Couple that with growth into other SE Asian countries and that they made $10m in November last year I can’t see why they couldn’t reach $100m revenue within the next few years.

High risk for sure given its recent head winds and small market cap. However, management have not behaved in a manner to put me off and in fact the recent declines has made it even more appealing!

Pablo, I agree.

The potential for QEX is enormous.
The risks are big, yet also well directed with their ability to reach customers in Asia and most notably, China. Customers who are needed by many Kiwi and Aussie businesses to bring money back to New Zealand.

Thoughts,
Pics peanut butter, New Zealand Honey, One Square Meals, Hogarths Craft Chocolate (and many other chocolate options), New Zealand Spirits (Lighthouse gin, Willowbank Whisky etc), perhaps large inflatable parks made for quality conscious fun parks by AflexTechnologies etc.

I like the QEX potential, and with wins will come a massive increase to the current share price.

Disc. Holder,
part of my riskier higher reward potential

[nztx]

Horses for courses though

better risk reward equations exist elsewhere though - particularly now in overseas stock markets
sections IMO

NZX market is getting overbought with no sight of demand finishing to the point it's getting difficult
to find good stock buys on fundamentals, for all the cheap mad money slopping around.

On the other side of the coin, one would have to be fairly unlucky to lose too much in
current times .. ;)

Share register too tight for QEX's best interests here IMO

They probably got to move copious quantities now on low margins to recoup what the lost
one way or another in past 6-12 months.

That is if there aren't any further stuff ups & losses in the QEX Camp in the future too ..

Don't intend going anywhere near this one any time soon now, but may be wrong!

[Pablo123]

Noticed that @nutz has selected QEX as one of their 2021 picks. Wonder if they see this thread what your reasoning behind it was....?

Looking forward to seeing QEX mid year announcement around how their Australian operations are going, selling direct from bonded warehouse, live streaming as well as an update on the ‘theft’.

[sb9]

Heading down to 25c level??

[Pablo123]

Normally really bullish with QEX. However no updates for quite a while and now it’s auditor resigns.....hoping the red flags don’t turn into a white flag :(

[nztx]

Remember as someone posted earlier -- "The potential for QEX is enormous"

That's if they don't lose or misplace or miscount the frigging Inventory, or
it dont grow legs first .. ;)

[nztx]

No further announcements just yet because auditors may be exploring uncharted powder
trails around facility from a distant distance .. ;)

Hopefully not a case of Auditor have Warehouse flunkies trot all the pallets for sample count
from very distant distance ...

Flunkies trot out all and more pallets with cartons they just emptied.. all duly counted ..

Auditor say not their problem if flunkies misunderstand and bring out pallets of both empty & full cartons
and not say .. ;)


So obviously not enough bubbles blown over spilt milk just yet - if you like .. ;)

[traineeinvestor]

China's SF Express has just announced it will takeover HK's Kerry Logistics. Not directly relevant to QEX, but suggests that it could be in the market for other acquisitions as it builds a more global network. Assuming no other material issues (beyond what's already been announced), QEX could be a low cost entry point to NZ for them.

Disclosure: None

[Pablo123]

Gives me some comfort that this is the reasoning behind the auditor change....

https://www.nbr.co.nz/story/qex-finds-new-auditor-after-deloitte-increased-fees

[Ggcc]

I still believe the management has a lot to prove to get me back in. If I was a newbie, I would not invest in this share, as for now it is pure gambling that they will come out of this ok. It is my own view and not financial advice, but it smells like Wynyard

[Food4Thought]

https://simpleflying.com/air-new-zealand-boeing-787-guangzhou/amp/

A positive article regarding international trade, which has a good undertone for businesses like QEX.

[nztx]

https://www.nzx.com/announcements/367556

Appointment of new Independent Director

"QEX Logistics Limited (NZX: QEX) has appointed Martin MacDonald to its Board of Directors as an Independent Director, effective immediately.

Mr MacDonald comes to QEX with significant governance, commercial and financial management experience, across both the public and private sectors."

[sb9]

I still believe the management has a lot to prove to get me back in. If I was a newbie, I would not invest in this share, as for now it is pure gambling that they will come out of this ok. It is my own view and not financial advice, but it smells like Wynyard

Couldn't agree more, Board and Management really need to come clean especially re the recent warehouse theft saga, both Ronnie and Connor lost credentials on that one.


Gives me some comfort that this is the reasoning behind the auditor change....

Is it just about the fees or tougher scrutiny imposed by Deloitte around their accounting practices??
https://www.nbr.co.nz/story/qex-finds-new-auditor-after-deloitte-increased-fees

[Ggcc]

https://www.nzx.com/announcements/367746

It has become a circus here

[JSwan]

Hope they sort it out, feeling really bad for existing holders

[winner69]

A interest coverage of negative 6.5 times is pretty impressive

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/QEX/367745/340525.pdf

[sb9]

Oh dear...mayhem :eek2: If I were holder, I would get out at the earliest and take whatever money I can get, shades of WYN, CBL etc.....

[winner69]

Oh dear...mayhem :eek2: If I were holder, I would get out at the earliest and take whatever money I can get, shades of WYN, CBL etc.....

It always was Ronnies’s company

[percy]

https://www.nzx.com/announcements/367746

It has become a circus here

A total disgrace.

[Sideshow Bob]

Martin MacDonald was a director for 3 days before resigning......now that is impressive!!

QEX Appointment of New Independent Director (amended) - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/367598)

[Ggcc]

It always was Ronnies’s company
And not a team player by the sounds. Big boys and their egos

[winner69]

Wonder if the suspension will ever be lifted

[sb9]

Hmmm...now quotation suspended until further notice, nervous time for holders....

[JohnnyTheHorse]

Wonder if the suspension will ever be lifted

At least it wont be a red day. That's got to be a positive.

[Ggcc]

At least it wont be a red day. That's got to be a positive.
It will most likely get delisted with everything going on in the background. I am sad for holders, but I have said it before Wynyard is what I keep smelling

[Food4Thought]

It will most likely get delisted with everything going on in the background. I am sad for holders, but I have said it before Wynyard is what I keep smelling

Financially, a very big lesson and bad situation for myself and many other share holders. Also negative for market confidence.

This share takes a bottom drawer position. Unable to sell, conract Link Market Services for advice.

Hopefully Ronnie has the year of the Ox in his mindset and works this out one way or another with exceptional work effort and dedication to the business he started.

[Brain]

It will most likely get delisted with everything going on in the background. I am sad for holders, but I have said it before Wynyard is what I keep smelling

I guess that is one scenario. . Would any self respecting and capable director take this on? As an 80% shareholder Ronnie has total control so I guess he could appoint anybody to the board and when the share price drops take the company private.

[Ace]

I guess that is one scenario. . Would any self respecting and capable director take this on? As an 80% shareholder Ronnie has total control so I guess he could appoint anybody to the board and when the share price drops take the company private.

I'm very glad I got out and preserved my capital, I had already lost a fair chunk on this especially being a top 10 holder. Since then I've recovered most of my losses in other opportunities, although never the opportunity cost. Unfortunate what has become although seeing the incompetence of management in handling presenting situations spoke volumes to me and was a major red flag. No faith was left in the BoD or Ronnie to execute. I feel the recent capital raise was done in poor taste with such a large limit, and was timed impeccably - citing funding required for further growth, when more than likely it was known to QEX that it would be in a financial dire - and to build up cash prior. I find it hard to believe that they wouldn't be aware of QEX financial position at the time of raising and to so boldly claim it was to fund growth and further opportunities was such a cop out given all the excuses in the AGM, all the other avenues and so forth. I think we were sold a pipe dream.

[sb9]

I'm very glad I got out and preserved my capital, I had already lost a fair chunk on this especially being a top 10 holder. Since then I've recovered most of my losses in other opportunities, although never the opportunity cost. Unfortunate what has become although seeing the incompetence of management in handling presenting situations spoke volumes to me and was a major red flag. No faith was left in the BoD or Ronnie to execute. I feel the recent capital raise was done in poor taste with such a large limit, and was timed impeccably - citing funding required for further growth, when more than likely it was known to QEX that it would be in a financial dire - and to build up cash prior. I find it hard to believe that they wouldn't be aware of QEX financial position at the time of raising and to so boldly claim it was to fund growth and further opportunities was such a cop out given all the excuses in the AGM, all the other avenues and so forth. I think we were sold a pipe dream.

I still have cloud of doubts over that $4mln+ missing inventory, whether its really lost or made a backdoor entry into some key executive pockets?? I think NZX surveillance committee should ask some tough questions with Ronnie, we cannot let these kind of operators in our secondary markets, especially when so many retail investors are now pouring their hard earned savings.

[Ace]

I still have cloud of doubts over that $4mln+ missing inventory, whether its really lost or made a backdoor entry into some key executive pockets?? I think NZX surveillance committee should ask some tough questions with Ronnie, we cannot let these kind of operators in our secondary markets, especially when so many retail investors are now pouring their hard earned savings.

Me too, Shanghai is quite a modern T1 city - bonded warehouses are very secure and there is a lot of surveillance in China. I find it very hard to believe that the Police have investigated or even been advised at all, let alone that there is no footage or trace of where the inventory went - it would be interesting if someone is able to follow up on that. 4m of inventory on baby formula is a very large volume of goods to go missing that even if you take a "small" chunk everyday, it would have to be a substantial volume, and for this to all go unnoticed by all staff members, systems, and those who stock take? It seems very odd to me, and again, very well timed with the capital raise. All speculation on my behalf although it all feels very, and dare I say it, very fishy to me.

Shipping is a very tightly controlled industry, and whilst it's not uncommon for goods and packages to go missing, 4m worth of inventory is a lot to go missing without a paper trace, surely at each stage of the process the inventory would be accounted for. It doesn't just go "missing". Especially given paying duties on goods once they leave the warehouses. There are a lot of checks and balances so to narrow down at which stage of the process there is a discrepancy? I'd believe that's something doable.

Then adding on no insurance provisions for misappropriated goods when all you're doing is handling goods? Maybe I expected too much out of an NZX listed entity or a corporation that was seemingly worth up to 50mm.

[Brain]

The thing that puzzles me the most is the new Director MacDonald stating on Monday. Surely This guy would have done his due diligence on the company before he agreed to be appointed to the board. He would have talked to the other directors and understood the state of the company. I took MacDonalds appointment as a positive sign.

Then 4 days later he resigns.

[Ggcc]

The thing that puzzles me the most is the new Director MacDonald stating on Monday. Surely This guy would have done his due diligence on the company before he agreed to be appointed to the board. He would have talked to the other directors and understood the state of the company. I took MacDonalds appointment as a positive sign.

Then 4 days later he resigns.

Ronnie I feel sounds a bit like a hot head. When you are that deeply involved with pocket and heart you cannot see the forest through the trees..

[sb9]

The thing that puzzles me the most is the new Director MacDonald stating on Monday. Surely This guy would have done his due diligence on the company before he agreed to be appointed to the board. He would have talked to the other directors and understood the state of the company. I took MacDonalds appointment as a positive sign.

Then 4 days later he resigns.

Guess it depends on how much access he had to sensitive information before he took Directorship. Probably was horrified when he saw some facts once he got into the role and thought its worth not to taint his name with this outfit.

[Food4Thought]

Guess it depends on how much access he had to sensitive information before he took Directorship. Probably was horrified when he saw some facts once he got into the role and thought its worth not to taint his name with this outfit.


What could be done currently to ensure the company makes a come back and goes good on their debts etc?

Does anyone see the way forward for this business?
Directions and opportunities?

[winner69]

Auditor resigning a week ago wasn’t a good sign either

[kiora]

Posted 17-2-2018

Sadly for shareholders not looking good


I wouldn't touch anything C.E . is envolved in with a barge pole.

[sb9]

What could be done currently to ensure the company makes a come back and goes good on their debts etc?

Does anyone see the way forward for this business?
Directions and opportunities?

I hear your pain as holder, unfortunately its all upto Ronnie who is the majority holder of the company and depends on his motives, right now they're not that prospective.

[yuj4]

everyone is resigning.... it's so obvious this company is dodgy as.

[Brain]

Appointing a new director who seems reasonably well connected and able is not the act of a dodgy company. A dodgy company would keep its business to itself and not invite scrutiny from a new director. I am guessing something has come out of left field and caused a huge rift between directors and Ronnie. The interest covenant problem was expected after loosing 4M$ stock and MacDonald would have known about that.

[winner69]

MacDonald probably talked into job by English and then when English packed a sad he thought he better go as well.

[CROESUS U.T.]

Disappointing to also see Danny Chan go, as I thought his connections with the region added a valuable contribution to the board.

[Brain]

The best we can expect would be that the board and Ronnie kiss and make up. I cannot think of a case previously where the board has resigned in unison. Hopefully we will find out what the bone of contention is and that there is a solution.

[Wiremu]

For Danny Chan to take a step like this means something is seriously seriously wrong. It will require far more than a kiss and make up or apology and handshake.

[nztx]

For Danny Chan to take a step like this means something is seriously seriously wrong. It will require far more than a kiss and make up or apology and handshake.


Hmmm yes - agree

[Baa_Baa]

For Danny Chan to take a step like this means something is seriously seriously wrong. It will require far more than a kiss and make up or apology and handshake.

There's an understatement, three directors and the auditor in quick succession. They know, I'm sure. Shame shareholders don't know.

[nztx]

Does obligation to keep the market informed continue, regardless of suspension on NZX ? ;)

The lost / misplaced / stolen stock must have inflected a fairly hefty blow on things -- let's hope it doesn't turn terminal ..

Why have the Board basically kept their mouths shut through the period after ? ;)

The Board departees and Auditors as well all hoofing it out the door certainly doesn't look good..

[winner69]

Does obligation to keep the market informed continue, regardless of suspension on NZX ? ;)

The lost / misplaced / stolen stock must have inflected a fairly hefty blow on things -- let's hope it doesn't turn terminal ..

Why have the Board basically kept their mouths shut through the period after ? ;)

The Board departees and Auditors as well all hoofing it out the door certainly doesn't look good..

Pretty sure they still follow disclosure rules while suspended

Not if they delisted ..kicked off

[dreamcatcher]

Always thought this would end sadly for holders after missing inventory ........

[Sideshow Bob]

Looking very much like a mega-omni-cluster.......;):(:scared:

[sb9]

Looks like curtains down from here, feel sorry for holders. What a dodgy character...:eek2:

[Ggcc]

Looks like curtains down from here, feel sorry for holders. What a dodgy character...:eek2:
Most likely nail in the coffin. As Percy mentioned. An absolute disgrace what is going on there. They may need to consider revoking his passport

[winner69]

Most likely nail in the coffin. As Percy mentioned. An absolute disgrace what is going on there. They may need to consider revoking his passport

Took a while to come clean eh ....maybe going into media soon

Only $2,900 so no problem - that's money but what about reputation (his and NZ's)

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/QEX/368053/340953.pdf

[nztx]

Took a while to come clean eh ....maybe going into media soon

Only $2,900 so no problem - that's money but what about reputation (his and NZ's)

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/QEX/368053/340953.pdf


First time that matter has come out in NZX announcements for QEX

Only roughly 3 months further down the track - so much for 'keeping the market informed & disclosure'

Now let's see what NZReg have to say about it, a wet bus ticket issued or remaining asleep in the chair .. ;)

Can see why new Director flew away almost as fast as he arrived after waking up another to things .. ;)

Feel sorry for punters holding this one - you may have been properly QEX-ED over .. !

Maybe a Shareholder class action is possibly the last resort needed to sort things out properly ? ;)

[Food4Thought]

First time that matter has come out in NZX announcements for QEX

Only roughly 3 months further down the track - so much for 'keeping the market informed & disclosure'

Now let's see what NZReg have to say about it, a wet bus ticket issued or remaining asleep in the chair .. ;)

Can see why new Director flew away almost as fast as he arrived after waking up another to things .. ;)

Feel sorry for punters holding this one - you may have been properly QEX-ED over .. !

Maybe a Shareholder class action is possibly the last resort needed to sort things out properly ? ;)

It sure is a solid burn.

The optimistic me wants for a buy out or for things to come right.

The realist says it is really up the creek without a paddle.

Hopefully some year of the Ox action can motivate the CEO.

[Getty]

I remember when this floated, one of the no hoper outfits promoting it, said "its one to watch"

They weren't wrong were they?

Yeah, preferably from the sidelines.

[sb9]

Even the newly appointed auditors are abandoning the ship, ah Ronnie can you be accountable to shareholders at least?

[winner69]

Even the newly appointed auditors are abandoning the ship, ah Ronnie can you be accountable to shareholders at least?

The related parties section in Annual Reports make interesting reading.

[Brain]

Even the newly appointed auditors are abandoning the ship, ah Ronnie can you be accountable to shareholders at least?

Ronnie owns 80% of the shares so it could be said that at least he is keeping the major shareholder informed and is not too worried about what the rest of us think.

[Brain]

Paul McBeth writes in business desk that in general there is a concern about related party transactions which is what Winner is pointing out.

The most recent issue McBeth notes is the following

“Or this - when in the six months ended Sept 30 (https://www.sharetrader.co.nz/x-apple-data-detectors://8), two customers insisted they could only pay QEX using Alipay, something the NZX-listed firm was unable to do. Xue stepped up and received the $130,000 on the firm’s account, promising to on-pay the funds. At the end of the period, he hadn’t.”

Maybe the above issue was the tipping point for the board.

I see this as a very tricky situation. Ronnie is the majority shareholder by a country mile. We shareholders do not have any board representation. Share trading is suspended for how long we do not know. Ronnie is unlikely to be able to appoint a new board unless he ropes in his relatives and as a consequence there will be no independent directors.

Does anybody have any idea how this is going to turn out other than badly?

I think businessdesk is the only news organisation to do any analysis on QEX. All credit to them.

[ralph]

He could have just let it slip his mind $130,000 will be peanuts to him ,he could not be that stupid as to ripoff his own company in such a blatant manner.
I think he is a bit arrogant due to owning 80% of the company and has had a wakeup call hopefully.
Also how it will turn out is anyone's guess, mine is he will get through it , and most shareholders will sell up as soon as possible & there will be buyers as well .
What's your guesstimate Brain!!

[sb9]

Thanks Brain for snippets from Business Desk write up. I still have reservations about the missing $4mln inventory from bonded warehouse and believe it’s a dodgy deal.

[Brain]

He could have just let it slip his mind $130,000 will be peanuts to him ,he could not be that stupid as to ripoff his own company in such a blatant manner.
I think he is a bit arrogant due to owning 80% of the company and has had a wakeup call hopefully.
Also how it will turn out is anyone's guess, mine is he will get through it , and most shareholders will sell up as soon as possible & there will be buyers as well .
What's your guesstimate Brain!!

I honestly cannot see how this can be resolved. He has to replace the board and no self respecting director is going to take this on. The best solution would be that the old board is reinstated and they get Ronnie and the company under control. Failing that he takes the company private again by buying out all the non related shareholders

[ralph]

I think I would take that (or anything) as a get out Brain , I cannot see Ronnie letting anyone override his decisions and authority not going off his record thus far .
Could be interesting & different .

[Brain]

The CFO has resigned. Maybe she didn’t like the way Ronnie was running things. The situation with this company seems to go from bad to worse.

[sb9]

The CFO has resigned. Maybe she didn’t like the way Ronnie was running things. The situation with this company seems to go from bad to worse.

Oh dear, looks like final nails on the coffin are being hammered...how not to do business Ronnie's style, what a sh^t star...

[Brain]

I guess that this trading halt cannot continue forever. Is Statutory management an option?

[nztx]

I guess that this trading halt cannot continue forever. Is Statutory management an option?

how long has the SCY halt been on now ? -- at least everyone knows that SCY is well & truly stuffed
and headed towards being buried .. ;)

[Brain]

This is a bit different though. SCY did have a board of directors before it went into receivership and receivership is a resolution. QEX doesn’t have a board so the shares can no longer be traded. Presumably the company is still trading.So my question is what is the next step because Ronnie is not going to be able to appoint a credible board.
QEX seems to me to be in a permanent state of limbo unless the regulator takes some action

[nztx]

This is a bit different though. SCY did have a board of directors before it went into receivership and receivership is a resolution. QEX doesn’t have a board so the shares can no longer be traded. Presumably the company is still trading.So my question is what is the next step because Ronnie is not going to be able to appoint a credible board.
QEX seems to me to be in a permanent state of limbo unless the regulator takes some action

Good points -- but how will Board effectively approve Auditors (ahem) remuneration, Ronnies enhanced package
for carrying the whole can short of a bit of stock and a few more warts added on etc ? ;)

Will Reporting matters become invisible totally .. not that it wasn't already quite scant before most of the Board etc decided
to go walkies ? ;)

[Brain]

The auditors resigned at the same time as the board and that was followed by the CFO. So we have a public listed company which is still trading presumably with one sole director being Ronnie ,no CFO and no auditors. Has this situation ever risen before?

[sb9]

The auditors resigned at the same time as the board and that was followed by the CFO. So we have a public listed company which is still trading presumably with one sole director being Ronnie ,no CFO and no auditors. Has this situation ever risen before?

Unfortunately, for holders outcome isn't looking that bright I'm afraid. Having said that NZX and FMA should hold Ronnie accountable at any cost and send a stern warning to anyone looking to list and run away with few millions.

[Brain]

Unfortunately, for holders outcome isn't looking that bright I'm afraid. Having said that NZX and FMA should hold Ronnie accountable at any cost and send a stern warning to anyone looking to list and run away with few millions.

I would expect the NZX and the FMA to move on this quickly because it really makes a mockery of share market regulation.

I hope the NZSA are taking an interest

[Balance]

I would expect the NZX and the FMA to move on this quickly because it really makes a mockery of share market regulation.

I hope the NZSA are taking an interest

LOL - as if the NZX or FMA ever cared about the NZX being a joke of an exchange!

Exhibits :

Snakk, Intueri, Wynyard, CBL, MFB , Plus SMS, Feltex, MPG, GeoP etc etc

[traineeinvestor]

Based on experience with other companies, the cost of getting new auditors on board a company in this position is likely to be significant.

Disclosure: not held

[nztx]

Based on experience with other companies, the cost of getting new auditors on board a company in this position is likely to be significant.

Disclosure: not held


Are there still some around that are either blind, deaf or stupid or any combination thereof .. and prepared to sit over the QEX roaster ? ;)


(and no offence intended to the deaf, blind or otherwise challenged out there .. )

[Brain]

Are there still some around that are either blind, deaf or stupid or any combination thereof .. and prepared to sit over the QEX roaster ? ;)


(and no offence intended to the deaf, blind or otherwise challenged out there .. )

The problem is that current shareholders have no choice because the shares cannot be traded.

[ralph]

The problem is that current shareholders have no choice because the shares cannot be traded.

How long can this go on for surely there must be a time limit , especially for share holders to put up with this blatant disregard

[Brain]

How long can this go on for surely there must be a time limit , especially for share holders to put up with this blatant disregard

Yes I have been asking the same question and have been hoping that one of the many learned people on this forum could give an answer. Since it is very unlikely that Ronnie will be able to appoint a board ,CFO and new auditors I thought statutory management is about the only answer. We are waiting for the NZX and FMA to take action.

[winner69]

Think the NZX can just delist QEX

Don’t think Ronnie would mind if this happened

I take it they ain’t gone broke yet

[forest]

Think the NZX can just delist QEX

Don’t think Ronnie would mind if this happened

I take it they ain’t gone broke yet

Delisting likely good for Ronnie, less attention to his way of doing business.
I think Ronnie should explain a bit of his knowlege in the disappearing products.
What about the other shareholders?

[Brain]

Think the NZX can just delist QEX

Don’t think Ronnie would mind if this happened

I take it they ain’t gone broke yet

Totally agree that the company is probably not going broke and delisting would suite Ronnie but it would make the NZX even more of a mockery than it already if problems with the governance of a public listed company results in delisting rather than close supervision.

I have always been for NZ having its own stock exchange but examples like this make me think that maybe the exchange should be run by people who know what they are doing. The Aussies perhaps and I can’t believe that I have just written that.

[Food4Thought]

Hope Ronnie has some magic he has been saving up, to share with shareholders. Come on Ronnie.

Does he reside in New Zealand? Be applaudable if he made some sort of communication with shareholders.

[nztx]

The 16th April brought an update from QEX'ed:

https://www.nzx.com/announcements/370757

QEX – Update on the Ministry for Primary Industries Charges


16/4/2021, 9:23 am GENERAL

Market Announcement

QEX Logistics Limited (NZX: QEX) – Update on the Ministry for Primary Industries Charges

QEX Logistics Limited (QEX) advises that the charges previously brought by the Ministry for Primary Industries (MPI) under the Animal Products Act 1999 against QEX’s subsidiary, New Y Trading Limited (New Y), and QEX’s CEO, Jinjie (Ronnie) Xue, will remain unchanged.

As disclosed to the market by QEX on 23 February 2021, the charges were previously under review by MPI and it was not clear at that point in time whether the charges would be dropped or if additional charges would be brought. MPI have now confirmed that the charges (as they stand) will remain.

The matter will go to trial but a date is yet to be set down. New Y and Mr Xue will be defending the charges.

This charges do not prevent New Y from continuing to trade.

It appears that MPI still intend on putting New Y & Ronnie over their high temperature bar-b-que

Guess Ronnie won't have too much time to be bothered with anything else with that going on .. ;)

(not that reporting or updates were much better before the current shambles blew up around their ears .. ;) )

[Getty]

Confucius say; Man who have hand in till, must be standing still.

[Leftfield]

This article (https://businessdesk.co.nz/article/primary-sector/china-cracks-down-on-smuggling-of-nz-baby-formula) appears to point to more possible problems for QEX!!??

"Last month, Chinese authorities detained 15 people in coordinated raids across the county. This came amid accusations criminal gangs have smuggled US$152.4 million (NZ$203m) worth of baby milk formula into China over the past two years, according to the South China Morning Post.

The report said in one of the raids 170,000 cans of baby milk formula originating from New Zealand were found in a warehouse while an Auckland-based courier firm allegedly had links to the smuggling operation"

GLH.

[Dassets]

I hope the missing stock wasn't seized by the Chinese Government in these raids.

[whatsup]

This article (https://businessdesk.co.nz/article/primary-sector/china-cracks-down-on-smuggling-of-nz-baby-formula) appears to point to more possible problems for QEX!!??

"Last month, Chinese authorities detained 15 people in coordinated raids across the county. This came amid accusations criminal gangs have smuggled US$152.4 million (NZ$203m) worth of baby milk formula into China over the past two years, according to the South China Morning Post.

The report said in one of the raids 170,000 cans of baby milk formula originating from New Zealand were found in a warehouse while an Auckland-based courier firm allegedly had links to the smuggling operation"

GLH.

WOW , not a good look for N Z inc, b!oody ------ would sell their children for a $ !!

[Sideshow Bob]

The 16th April brought an update from QEX'ed:

https://www.nzx.com/announcements/370757

QEX – Update on the Ministry for Primary Industries Charges



It appears that MPI still intend on putting New Y & Ronnie over their high temperature bar-b-que

Guess Ronnie won't have too much time to be bothered with anything else with that going on .. ;)

(not that reporting or updates were much better before the current shambles blew up around their ears .. ;) )


Must be serious flouting of the rules - normally MPI would give a slap (maybe twice) with a wet bus ticket. MPI have probably found someone to go hard at.

Has to be pretty willful, reckless, on-going, widespread and flagrant!

[Ace]

This article (https://businessdesk.co.nz/article/primary-sector/china-cracks-down-on-smuggling-of-nz-baby-formula) appears to point to more possible problems for QEX!!??

"Last month, Chinese authorities detained 15 people in coordinated raids across the county. This came amid accusations criminal gangs have smuggled US$152.4 million (NZ$203m) worth of baby milk formula into China over the past two years, according to the South China Morning Post.

The report said in one of the raids 170,000 cans of baby milk formula originating from New Zealand were found in a warehouse while an Auckland-based courier firm allegedly had links to the smuggling operation"

GLH.

Shareholder action in the works?

[winner69]

Ronnie going to allow you to vote for or against delisting from the NZX

And then sell the business to a third party ...hmmm


Mateship


http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/QEX/371101/344683.pdf

[Leftfield]

QEX Logistics Limited (QEX) advises that it intends to delist from the NZX Main Board.

QEX is currently suspended from trading due to non-compliance with the NZX Listing Rules relating to board composition following the resignation of its independent directors. Despite ongoing recruitment efforts, several key factors have made it difficult for QEX to appoint the required number of qualified independent directors, with the relevant experience, to regain compliance with the NZX Listing Rules.

The company considers the delisting a necessary step to end this period of non-compliance and create a pathway to deliver the best possible outcome for its shareholders. If the delisting proceeds, a process will be undertaken to prepare and position the group for a third-party business sale.

GLH

[Brain]

Lambs to the slaughter

[nztx]

Poor holders -- sitting ducks for potentially the next instalment of getting QEX'ed over .. out of sight of any recognised exchange .. ;)

"position the group for a third-party business sale." maybe = hock the outfit off for a fire sale price or will that be major holder try to buy out at cents in the dollar - so all publically reported issues, warts, sins & stolen/missing stocks all very conveniently disappear under a pile of empty milk cartons ? ;)

[Brain]

Poor holders -- sitting ducks for potentially the next instalment of getting QEX'ed over .. out of sight of any recognised exchange .. ;)

"position the group for a third-party business sale." maybe = hock the outfit off for a fire sale price or will that be major holder try to buy out at cents in the dollar - so all publically reported issues, warts, sins & stolen/missing stocks all very conveniently disappear under a pile of empty milk cartons ? ;)

Yes that is right. NZ sharemarket is still the Wild West .

[Sideshow Bob]

At last traded price had a $16m market capitalisation.

Nothing left for shareholders.....

[Onthemoney]

What would happen if shareholders voted against a delisting? What would the NZX do?

[Sideshow Bob]

What would happen if shareholders voted against a delisting? What would the NZX do?

Won’t happen - Ronnie owns 72% of the company so any vote is a done deal....

[Brain]

Won’t happen - Ronnie owns 72% of the company so any vote is a done deal....

Ronnie is not voting so it is up to the 28% to decide

[Brain]

What would happen if shareholders voted against a delisting? What would the NZX do?

Probably the same as it always does - nothing

[sb9]

Ronnie going to allow you to vote for or against delisting from the NZX

And then sell the business to a third party ...hmmm


Mateship


http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/QEX/371101/344683.pdf

What CRO#K Ronnie is...another CBL, WYN springs to mind. When will FMA and NZX wake up and protect Retail shareholders who have been sucked into this rot.

[Nor]

One big red flag right from the start. Looked at it seemed good but.

[Littlemermaid]

Heard from a friend in the Chinese community, this guy has no interest to keep running the business and just tries to get his money out and run away, given the departure of the independent directors who has high profile, it's a sign that their business won't last long.

[kiora]

Ripe for class action against directors I would have thought?

Disc: Not ever held, red flags ever since they listed

[nztx]

Ripe for class action against directors I would have thought?

Disc: Not ever held, red flags ever since they listed

Thinking likewise too

Never held any here either

[Oliver Mander]

Just FYI: press release by NZSA today.

QEX Logistics de-listing the worst possible outcome for shareholders

The NZ Shareholders’ Association will vote proxies against the de-listing of QEX Logistics (QEX) in any upcoming vote of shareholders.

NZSA believes that the future of the company is best decided within the transparency provided by a public listing and the accountability provided by the NZX Listing Rules. The company has stated that it wishes to prepare itself for sale once it de-lists. Should the company de-list, NZSA believes there is an increased risk of further loss of value for shareholders.

QEX has suffered a number of adverse events over the last few months, including the theft of stock from a Shanghai warehouse, charges being laid by the Ministry of Primary Industries against subsidiary New Y and QEX Chief Executive Ronnie Xue, the resignation of all other directors and the resignation of its auditor.

The company is currently in a trading suspension as Ronnie Xue is its only remaining director, placing QEX in breach of the minimum director requirement within the NZX Listing Rules.

“We have tried, unsuccessfully, to contact QEX to understand the situation they have found themselves in and to provide more certainty for retail investors” says Oliver Mander, Chief Executive of the NZ Shareholders Association. “In that context, where it is difficult to gain any form of accountability to shareholders over a listed entity, we do not believe that there will be an enhanced opportunity for accountability if the company were to de-list.”

NZSA believes the situation is unprecedented on the NZX, and welcomes the current investigations being undertaken by NZX RegCo and the release of its findings.

“The suspension imposed by NZ RegCo has protected potential investors in QEX. However, the series of events at QEX is unprecedented for a listed entity in New Zealand and may result in further learning that can better protect existing investors in future” says Mander. “NZSA will continue to engage with NZX RegCo to ensure the best possible outcome for QEX shareholders.”

QEX listed in February 2018, facilitating trading in $2.5m of shares that had been raised over the preceding months and incorporating businesses acquired from Ronnie Xue. This was followed by a further $2.5m placement in August 2018 and a Share Purchase Plan raising $1.7m completed in May 2020.

Ronnie Xue continues to own approximately 70% of QEX Logistics.

[Leftfield]

Well done Oliver, NZSA's comments are helpful and appreciated.

[Brain]

Thanks Oliver - very good to see the NZSA involved.

[Oliver Mander]

Thanks for the feedback. it is worth noting that in any vote, the existing shareholding of Ronnie Xue CANNOT be voted. So it comes down to how remaining shareholders feel. You can nominate NZSA as your proxy for QEX by contacting Link Market Services.

[Not The Chosen One]

Fun times in QEX land


To: Market Participants
From: NZX Regulation Limited (NZ RegCo)
Date: 20 May 2021
Subject: QEX Logistics Limited – delisting application
On 22 April 2021, QEX Logistics Limited (QEX) notified the market that it intended to delist from the NZX Main Board.
On 18 February 2021, NZ RegCo placed QEX into suspension as it no longer met the Listing Rule requirements relating to board composition, including the director residency requirement, independent director requirement and audit committee composition requirement. QEX remains in breach of those corporate governance requirements.
In addition, NZ RegCo confirms that a number of investigations into QEX’s compliance with its Listing Rule continuous disclosure obligations remain ongoing. Those investigations relate to disclosures by QEX in relation to the removal of inventory from QEX’s China Customs bonded warehouse, the resignation of QEX’s three independent directors, the breach by New Y Trading Limited (New Y) of its interest cover ratio obligations, and the charges brought by the Ministry for Primary Industries against New Y under the Animal Products Act 1999. NZ RegCo notes that any delisting of QEX will not release QEX from prior obligations under the Listing Rules.
A delisting by QEX will require NZ RegCo approval under the Listing Rules. NZ RegCo may apply conditions to delisting at its discretion.
NZ RegCo has today confirmed to QEX the conditions that it will impose on any delisting of QEX from the NZX Main Board. Those conditions reflect QEX’s current circumstances, and the arrangements that NZ RegCo considers appropriate to support QEX shareholders to assess the delisting proposal, given QEX has no independent directors. NZ RegCo notes that delisting is a significant event for a listed issuer, as shareholders will cease to have the benefit of the protections afforded under the Listing Rules. The conditions:
- QEX must obtain approval of shareholders, who are Non-Affiliated Holders, by way of ordinary resolution to delist from the NZX Main Board – this will exclude Mr Ronnie Xue as current majority shareholder of QEX.
- An independent report will be required as part of the QEX meeting materials – that report will, among other things, (i) assess the sufficiency of the information provided to QEX shareholders to enable them to make to decision on the delisting proposal, (ii) assess the implications of QEX reverting to being a private company, as compared to remaining listed and subject to the Listing Rules, and (iii) opine on the extent of the steps taken by QEX to
appoint an auditor, independent directors, and assess options to remain as a listed company. NZ RegCo will be required to confirm appointment of the independent appraiser, and publication of the report will be subject to confirmation of non-objection by NZ RegCo.
- NZ RegCo will review draft announcements and any proposed communications with shareholders in relation to the proposed delisting.
- NZ RegCo will review QEX's draft Notice of Meeting, to ensure it includes:
o details of the advantages and disadvantages of QEX remaining listed, and of QEX
delisting;
o detailed information regarding QEX’s strategy as a private company;
o details of QEX’s strategy if the delisting is not approved; and
o information about the options available for QEX shareholders, including in relation
to retaining or selling their shares, if the delisting is approved.
Publication of the Notice of Meeting will be subject to confirmation of non-objection by NZ RegCo.
- QEX will be required to lodge an additional $200,000 cash bond, to account for possible enforcement outcomes associated with NZ RegCo’s current investigations.
- QEX will be required to pay any outstanding fees owing to NZX, including the delisting fee and NZ RegCo’s costs relating to delisting application.
Please contact NZ RegCo at issuer@nzregco.com with any queries.
ENDS

[nztx]

https://www.nzx.com/announcements/373224


NZ RegCo advises that QEX Logistics Limited (“QEX”) has not released its Full Year Results for the period ending 31 March 2021 which, under NZX Listing Rule 3.5.1 were due to be released through MAP on or before 31 May 2021.

Pursuant to section 3 of NZX’s Guidance Note on Trading Halts and Suspensions, NZX’s usual practice is that if an Issuer has not issued its full year results within 5 business days of the due date, trading of that Issuer’s securities will be suspended until the Issuer has issued its full year results.

NZ RegCo notes, in the present case, that QEX is currently suspended. NZ RegCo suspended the trading of QEX ordinary securities on 18 February 2021 due to QEX having no independent directors which is a requirement under Listing Rule 2.1.1

[Ggcc]

https://www.nzx.com/announcements/373224

Hopeless. I really feel for shareholders.

[jg8512]

https://www.nzx.com/announcements/373224

so what alternative sanction is NZX imposing?
presumably the rules never contemplated such a scenario, which is an indictment given the various ratbag promoters and outfits NZX has allowed to list over the years

[winner69]

Smiths City still seems to be ‘listed’ ...even though ‘suspended’

[Pablo123]

This has gone quiet for many months now. Anyone know if QEX is still definitely operating?

[ralph]

This has gone quiet for many months now. Anyone know if QEX is still definitely operating?
No one seems to have an answer ,speculation on what the outcomes will be is about all there is .
I think Ronnie has a lot of skin in the game to much & to much power for one individual in a company.
So he answers to no one ,when we can get some money back is the million dollar question and how !! Pablo

[Brain]

No one seems to have an answer ,speculation on what the outcomes will be is about all there is .
I think Ronnie has a lot of skin in the game to much & to much power for one individual in a company.
So he answers to no one ,when we can get some money back is the million dollar question and how !! Pablo

Probably the best that can be hoped for is that the 25% shareholding that Ronnie doesn’t own could be purchased either by him or others and the company taken private again. Private is where this company belongs I think as clearly Ronnie can’t work with a board. That would cost about $4m at last share price and we shareholders would get some money back and potentially invest it elsewhere where we have a better understanding of the risks. I suspect Ronnie would get an exceptionally good deal and be pleased with that unless there are a heap of skeletons in the closet.

[whatsup]

Probably the best that can be hoped for is that the 25% shareholding that Ronnie doesn’t own could be purchased either by him or others and the company taken private again. Private is where this company belongs I think as clearly Ronnie can’t work with a board. That would cost about $4m at last share price and we shareholders would get some money back and potentially invest it elsewhere where we have a better understanding of the risks. I suspect Ronnie would get an exceptionally good deal and be pleased with that unless there are a heap of skeletons in the closet.

Brian one word -----. !

[Brain]

Brian one word -----. !

Yeah you are right - that’s about the most optimistic thought that I have had all year.

[ralph]

Yeah you are right - that’s about the most optimistic thought that I have had all year.
I don't think so Brain ,Its probably the most realistic

[nztx]

QEX Logistics Ltd (“QEX”) – Late Annual Report Notification

1/7/2021, 8:30 am MEMO


10 Sep 21 - and still no sign of QEX / Ronnie coughing up the 2021 ANNUAL REPORT !


Probably a bit of QEX thumbing the nose at NZX going on .. but who knows ;)

[Brain]

QEX Logistics Ltd (“QEX”) – Late Annual Report Notification

1/7/2021, 8:30 am MEMO


10 Sep 21 - and still no sign of QEX / Ronnie coughing up the 2021 ANNUAL REPORT !


Probably a bit of QEX thumbing the nose at NZX going on .. but who knows ;)

It could take another year for this to be resolved. Does anybody know what powers the NZX have to force Ronnie to resolve it sooner than later? Presumably Ronnie continues to run the business and draws his salary and pays the staff and expenses. From his point of view no rush all good.

[74M]

I have contacted the NZ RegCo Head of Market Conduct. They wouldn't say whether they have the power to force a resolution. They did say they have the power to force a de-list which may not be helpful for shareholders. They also mentioned without specifics that they have a couple of enforcement matters in play at the moment but would not give a time frame around these.
I recommend that any worried shareholder to contact RegCo direct on (04) 495 2878. The more shareholders RegCo hears from the better...

[nztx]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/DISP/380286/356181.pdf


Public Censure of QEX by NZ Markets Disciplinary Tribunal


That will be an $80K Fine payable to NZX Disciplinary Fund thanks - for the look in ;)

How's the state of the Purse - Ronny - Is QEX Still alive & kicking ? ;)

Come in Ronny..

Don't fade on us - we know you're there somewhere (maybe hiding under the desk) ;)

[Balance]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/DISP/380286/356181.pdf

Public Censure of QEX by NZ Markets Disciplinary Tribunal

What a joke.

[whatsup]

What a joke.

but not as bad as the N Z police's response to the Tamaki rally at the museum on Saturday !!

[ralph]

I have contacted the NZ RegCo Head of Market Conduct. They wouldn't say whether they have the power to force a resolution. They did say they have the power to force a de-list which may not be helpful for shareholders. They also mentioned without specifics that they have a couple of enforcement matters in play at the moment but would not give a time frame around these.
I recommend that any worried shareholder to contact RegCo direct on (04) 495 2878. The more shareholders RegCo hears from the better...

Hi 74m I did ring the number you supplied last Thursday & the response from the nzx was that they are working with Ronnie to make an offer to the minor shareholders for a delisting proposal ,with only the minor shareholders to be eligible to vote on the proposal, so he and other major shareholders will not have a vote ,hopefully this settlement will be the first hurdle cleared to allow shareholders to get some closure .

[whatsup]

Hi 74m I did ring the number you supplied last Thursday & the response from the nzx was that they are working with Ronnie to make an offer to the minor shareholders for a delisting proposal ,with only the minor shareholders to be eligible to vote on the proposal, so he and other major shareholders will not have a vote ,hopefully this settlement will be the first hurdle cleared to allow shareholders to get some closure .

ral, IMO he would have to make a very reasonable offer for this to happen, I think that some of the insiders paid up for staff shares at .50 each , any offer would have to compensate these and other aggrieved share holders !!

[Pablo123]

QEX website is no longer live. I notice their warehouse by the airport has also changed to a different company. Looking less and less likely QEX is still even operating….. :(

[THEONE]

Their subsidy New Y Trading got 125,518.00 for 19 staff in August 21 (total over 400K)

I doubt whether they checked any companies before giving the grant.

Don't know the rules but surely you can't claim for a company that is insolvent and stops operating
few months later?

Is Ronnie still in NZ? Hopefully the warehouse hasn't had more stock gone missing.....................Cant tell me they have no idea who took it. No update on that.

[THEONE]

The chinese website is still there http://www.qexlogistics.com/ but not the english one qex.co.nz
Seems intentional

[ralph]

Hey Pablo did you notice what the name had changed to ?on the warehouse

QEX website is no longer live. I notice their warehouse by the airport has also changed to a different company. Looking less and less likely QEX is still even operating….. :(

[Justin]

The chinese website is still there http://www.qexlogistics.com/ but not the english one qex.co.nz
Seems intentional

chinese website contact detail still same in airport

70 Richard Pearse Drive, Airport Oaks



Info@Qexpress.co.nz
09-8388681 (tel:09-8388681)
09-8388690 (tel:09-8388690)

[THEONE]

http://app.companiesoffice.govt.nz/companies/app/ui/pages/companies/3165786/32049429/entityFilingRequirement?backurl=%2Fcompanies%2Fapp %2Fui%2Fpages%2Fcompanies%2F3165786%2Fdocuments

Companies register has new address as Unit R, 63 Hugo Johnston Drive, Penrose, Auckland, 1061 , New Zealand

Interestingly looks like ronnie was guarantor for Westpac for the trade facility.

Westoac should call in the loan.

[Pablo123]

Storepro solutions - https://storepro.co.nz/contact-us/

However seems they have moved to a smaller premises in Penrose.

[nztx]

Storepro solutions - https://storepro.co.nz/contact-us/

However seems they have moved to a smaller premises in Penrose.


Wonder if there has been further "Stock Shrinkage" for that to be possible ? ;)

[Pablo123]

Hi Oliver,

Do you by chance have insights for investors on whether any further progress has been made in de-listing or any other matters relating to QEX or Ronnie?

[Balance]

https://www.nzx.com/announcements/385781

What a joke!

$150,000 fine on a dead company.

Where were the NZX & FMA before this company got up to its shenanigans & went broke?

[kiora]

And what about censure & fines on directors including former directors?
YUCK

[Dassets]

Good grounds for civil action against those directors.

[nztx]

Good grounds for civil action against those directors.


Wonder what readies Ronnie & the past board members have for the chasing - if a shareholder class
action comes their way ? ;)

The Company's Insurers for directors cover may be looking a bit sheepish on things, assuming there
is or was some cover ;)

[nztx]

https://www.nzx.com/announcements/385781

What a joke!

$150,000 fine on a dead company.

Where were the NZX & FMA before this company got up to its shenanigans & went broke?


Probably should have made Ronnie personally a party to the NZX costs & penalties - given that it's
probably now a small shadow of what it was .. ;)

"Where were the NZX & FMA before this company got up to its shenanigans & went broke?"

Stat Management can't have been an issue - probably too small or not enough space
in the new smaller Lock up / aka premises

NZX & FMA have clearly failed investors in this case and a situation of a major shareholder
& director who should have had stringent reigns applied when the nonsense started to become
obvious..

[percy]

Director Danny Chan is experienced.
Not sure whether Bill's brother Conor English will last, as he may take over Bill's seat.
I am still wary of Chinese businesses and businessmen.

Above posted on 15-02-2018
Even more wary of them today.

[ralph]

Above posted on 15-02-2018
Even more wary of them today.
Not meaning to sound totally non P C but I totally agree Percy seeing their disregard to shareholders & negligence ,this will taint similar businesses & businessmen .
"Where were the NZX & FMA before this company got up to its shenanigans & went broke?" Quote NZTX
I assume from this you are asking /posing the question or do you have any facts nztx that qex is broke ,just awaiting the next development sooner rather than later before the nzx becomes a complete laughing stock / exchange .

[Brain]

Above posted on 15-02-2018
Even more wary of them today.

when I think of all the public listed companies that have failed due to incompetence and or dishonesty and it is a very long list they have all been run by white guys.

[whatsup]

when I think of all the public listed companies that have failed due to incompetence and or dishonesty and it is a very long list they have all been run by white guys.

Brain or Brane, Is ronnie a "whi!e guy "?

[Dassets]

Can you please name all these companies? How many NZ listed companies have failed in the last 20 years?

[percy]

Can you please name all these companies? How many NZ listed companies have failed in the last 20 years?

Intueri Education Group....Danny Chin.
Mainzeal Group...Richard Yan.

[Balance]

Can you please name all these companies? How many NZ listed companies have failed in the last 20 years?

CBL
Feltex
Pumpkin Patch
Pike River
Fortex
Intueri
Wynyard
Plus SMS
Snakk
PGC

Then there’s the finance companies :

South Canterbury Finance
Hanover
Strategic Finance
Capital & merchant
Lombard
Nathan Finance
Etc … all up 51 & in excess of $7 billion of wealth destroyed

[ralph]

Intueri Education Group....Danny Chin.
Mainzeal Group...Richard Yan.
Lets not let facts get in the way of being PC Percy

[nztx]

Not meaning to sound totally non P C but I totally agree Percy seeing their disregard to shareholders & negligence ,this will taint similar businesses & businessmen .
"Where were the NZX & FMA before this company got up to its shenanigans & went broke?" Quote NZTX
I assume from this you are asking /posing the question or do you have any facts nztx that qex is broke ,just awaiting the next development sooner rather than later before the nzx becomes a complete laughing stock / exchange .


Did I suggest they are broke ? ;)

or was that someone else ? :)

The following may give some indicators, bearing in mind Westpac appear to have pulled
subsidiary's Y's financing facility after $4m of stock allegedly vaporised without trace

The number of Board departures may suggest departing Directors not happy with what they saw

#136 Here:

DETERMINATION OF NZ MARKETS DISCIPLINARY TRIBUNAL 23 DECEMBER 2021

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/QEX/385780/362894.pdf


QEX has not made any submissions regarding costs but has noted that it has
limited financial resources at this time and that the recent Covid-19 lock-down
in Auckland has heavily impacted its operations. While it has not been
suggested that the global pandemic contributed to the breaches in this case,
there is no doubt that a Covid trading environment has resulted in a fast paced
and complex commercial environment where QEX and other companies must
make key business decisions at speed and when it may be difficult to predict
prospective market conditions. A small and closely held Listed entity, reliant on
external advisors, may be stretched and vulnerable in this environment.
Mistakes can be made but these breaches are consistent with a persistent
pattern of poor systems in place. That said, the Tribunal is mindful that
financial deterioration due to Covid trading conditions may be a factor in QEX’s
ability to pay its fine and costs at this time46.

#139 in same document:


The Tribunal also encourages NZ RegCo to work with QEX to determine how
best to make payment on its fine and costs (for example, agreeing a payment
plan).

In any case when or if things look decidedly terminal - will NZX then boot QEX off the Board
and start proceedings for recovery of any Penalties & Costs still outstanding ? ;)


Guess that puts NZX ahead of the long suffering minority shareholders too ;)

Perhaps a faster & less painful (for minority holders) formula may have been to make
Ronnie jointly responsible with QEX for the large dallop of penalties or better fully responsible
as sole remaining Director and longstanding Bigwig of the show ? ;)

[Dassets]

CBL
Feltex 2010
Pumpkin Patch 2015 when it closed all stores, delisted 2017, was gone for all money years earlier
Pike River 2012
Fortex 1994
Intueri 2017
Wynyard 2017
Plus SMS 2010
Snakk 2019
PGC 2018 Listing migrated. Hasn't failed.

To be fair the above delisted years after failing. Hmmm did miss Richina which seems to have the greatest legal consequence(so far) run by a Mr Richard Yan Esq.

Then there’s the finance companies : errr not listed but thanks for the memories.

South Canterbury Finance not listed
Hanover
Strategic Finance
Capital & merchant
Lombard
Nathan Finance
Etc … all up 51 & in excess of $7 billion of wealth destroyed

Dates added above. How about modern times?? I mean Fortex is virtually 30 years ago

[Brain]

Dates added above. How about modern times?? I mean Fortex is virtually 30 years ago

Your lucky that Balance didn’t go back to 87 which many of us have long memories of. Some of the guys that ran the companies where investors lost a lot of money were given knighthoods.

[percy]

Your lucky that Balance didn’t go back to 87 which many of us have long memories of. Some of the guys that ran the companies where investors lost a lot of money were given knighthoods.

1987 The lunatics took over the asylum.!!.
And yes some of the wide boys reinvented themselves and did extremely well,while others did not know any better and re offended.
Some where on Sharetrader there is a thread "directors to avoid" or some such name.I lot of people on it.Thankfully I have a long memory.

[ralph]

Totally agree nztx ,I think Ronnie will do what is best for him financially like most businessmen ,& the nzx cannot do much about that as shown, happen he needs more guidance .
A wee bit to play out yet but if he has no liabilities personally & covid carries on in the same or similar vein as it will for the next year plus then its a matter of time as he skims the top off .
Unless he decides having so much skin in the game he wants to persevere and sees the light at the end of the tunnel lol:eek2:
This is where the nzx should be, getting him to making his intentions clear ,not focusing on punitive fines to make them look like they have teeth and are capable of doing their job .

[Balance]

Your lucky that Balance didn’t go back to 87 which many of us have long memories of. Some of the guys that ran the companies where investors lost a lot of money were given knighthoods.

Some of the class of 1987 would have learnt very valuable lessons from their bitter experiences. In a way it is a pity that the good ones mostly shied away from public listed companies after that because they have gone on and built successful private businesses. Guess that’s one lesson they learnt - keep a low profile.

[Rawz]

The whale that comes to the surface gets harpooned

[Balance]

Dates added above. How about modern times?? I mean Fortex is virtually 30 years ago

The finance companies were unlisted but some had their debt securities listed (eg. South Canterbury Finance) of course to gain the benefit of listing without the scrutiny. NZX & Securities Commission were asleep which allowed them to tap the capital markets.

[mfd]

Interest.co.nz have a porridge list of those convicted of financial crimes, for those interested. They also have a deep freeze list of expired financial companies.

https://www.interest.co.nz/saving/porridge-list

[Dassets]

The finance companies were unlisted but some had their debt securities (eg. South Canterbury Finance) of course to gain the benefit of listing without the scrutiny. NZX & Securities Commission were asleep which allowed them to tap the capital markets.

The finance companies are/were regulated by the Reserve Bank, hey didn't the Companies Office approve the offer docs(can't quite recall). Sec Com had more of an enforcement role and I think it did cover contributory mortgages. Debt securities on the NZX back then had a totally different set of rules from equity or listed companies.

With South Canterbury Sec Com blew the whistle for full time when the on field referee got lost in the Ashburton mist. Oh the good old days right everyone. No rules can stop straight out criminal intent and action.

[Balance]

Totally agree nztx ,I think Ronnie will do what is best for him financially like most businessmen ,& the nzx cannot do much about that as shown, happen he needs more guidance .
A wee bit to play out yet but if he has no liabilities personally & covid carries on in the same or similar vein as it will for the next year plus then its a matter of time as he skims the top off .
Unless he decides having so much skin in the game he wants to persevere and sees the light at the end of the tunnel lol:eek2:
This is where the nzx should be, getting him to making his intentions clear ,not focusing on punitive fines to make them look like they have teeth and are capable of doing their job .

No CFO, No auditor, no independent director.

That's all you need to know that this company is dead.

And the NZX is busy handing out fines instead of doing something (anything) to bring clarity and certainty to shareholders!

[Sideshow Bob]

QEX Logistics - delisting update - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/387935)

[Not The Chosen One]

QEX Logistics - delisting update - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/387935)


So, exactly what Ronnie wants without paying fines and late notice penalties because NZ RegCo/NZX can basically be taken for a ride by any cowboy in town

[Brain]

“NZ RegCo CEO Joost van Amelsfort: “Cancelling QEX’s listing and quotation is not an action taken lightly by NZ RegCo. It means QEX shareholders will lose the potential to trade their shares on-market, and the benefit of the protections under the Listing Rules.”

I am struggling to work out what the benefits of protection are under the listing rules.

Maybe he had his tongue in his cheek when he said this.

[ralph]

“NZ RegCo CEO Joost van Amelsfort: “Cancelling QEX’s listing and quotation is not an action taken lightly by NZ RegCo. It means QEX shareholders will lose the potential to trade their shares on-market, and the benefit of the protections under the Listing Rules.”

I am struggling to work out what the benefits of protection are under the listing rules.

Maybe he had his tongue in his cheek when he said this.
He should be made to at least pay the remaining shareholders out before delisting or make them an offer seeing as he holds the majority. Fines are just a waste of more money unless it is going to the shareholders abandoned by the NZX reg co

[Not The Chosen One]

He should be made to at least pay the remaining shareholders out before delisting or make them an offer seeing as he holds the majority. Fines are just a waste of more money unless it is going to the shareholders abandoned by the NZX reg co


I've heard directly from a previous board member that the reason they all resigned was of how dishonest he is. That's putting it lightly I imagine. Not sure if shareholders can do anything about this cowboy but goes to show how little the NZX/NZ RegCo does in nailing these people.

[Brain]

I've heard directly from a previous board member that the reason they all resigned was of how dishonest he is. That's putting it lightly I imagine. Not sure if shareholders can do anything about this cowboy but goes to show how little the NZX/NZ RegCo does in nailing these people.

The board is there to represent the shareholders. Thanks to the board in Resigning in mass this has put all the shareholders in an impossible position. Another example where NZ boards are amateurs and do not serve the shareholders and coupled with the impotence of RegCo NZ still is the Wild West.

[Not The Chosen One]

The board is there to represent the shareholders. Thanks to the board in Resigning in mass this has put all the shareholders in an impossible position. Another example where NZ boards are amateurs and do not serve the shareholders and coupled with the impotence of RegCo NZ still is the Wild West.


Absolutely. There's always more than 1 side to the story and I've since heard from Ronnie himself today. Interesting perspective but I don't think there's any more clarity in the situation after hearing from both sides.

[Pablo123]

Are you able to elaborate a bit further on what both sides are saying?

[ralph]

Are you able to elaborate a bit further on what both sides are saying?
That would be nice ,I think a lot of shareholders could do with hearing from Ronnie & his intentions going forward towards his shareholders .

[74M]

I am also gutted that Regco/NZX are deserting the shareholders. Regco/NZX deserve much bigger fines than those they handed out to QEX. They need to be held accountable for the rort Regco has shown itself to be. I also contacted Ronnie today and he is prepared to communicate with shareholders both via phone and email, which is positive.....but shareholders still need to see numbers and a balance sheet.
At this moment I do not believe de-listing is the right option and could potentially exacerbate shareholder positions.

[ralph]

Absolutely. There's always more than 1 side to the story and I've since heard from Ronnie himself today. Interesting perspective but I don't think there's any more clarity in the situation after hearing from both sides.
Ditto what Pablo said could you elaborate on anything i.e. Ronnie's Intentions etc anything Thankyou

[ralph]

Hi brain Or another Brainy person is it correct that when delisting occurs all shares are forfeited & all money Invested unrecoverable .

[Baa_Baa]

Hi brain Or another Brainy person is it correct that when delisting occurs all shares are forfeited & all money Invested unrecoverable .

Not necessarily, you are all still shareholders, just not listed on the sharemarket. Shareholders in circumstances like this really need to unite to protect their interests, or some lawyer will figure out a way for the principal owner to stuff all of you. In a situation of a majority owner being a protagonist, it gets more difficult, but not impossible to get some crumbs back from an otherwise hopeless debacle.

[Baa_Baa]

Not necessarily, you are all still shareholders, just not listed on the sharemarket. Shareholders in circumstances like this really need to unite to protect their interests, or some lawyer will figure out a way for the principal owner to stuff all of you. In a situation of a majority owner being a protagonist, it gets more difficult, but not impossible to get some crumbs back from an otherwise hopeless debacle.

The Shareholders Association has recently provided an example of uniting shareholders in a dispute with a Board, helping to successfully take over the company for them. See what they think about this. A passive approach will eventually lose everything to the strongest shareholder.

[ralph]

I think you are spot on Baa Baa ,things are very passive at the moment

[Sideshow Bob]

QEX Logistics investors left with few options to rescue funds | RNZ News (https://www.rnz.co.nz/news/business/466393/qex-logistics-investors-left-with-few-options-to-rescue-funds?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Thursday+5+ May+2022)

[ralph]

QEX Logistics investors left with few options to rescue funds | RNZ News (https://www.rnz.co.nz/news/business/466393/qex-logistics-investors-left-with-few-options-to-rescue-funds?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Thursday+5+ May+2022)

I think this whole saga as it continues shows how inept the financial market is in the N Z especially the NZX , and have they learnt anything except to cover their own backs & make money out of the shareholder's / Investors Dilemma No in fact they have not helped one bit .
The absolutely one Organization in this to show credibility and honour is the New Zealand shareholders association what an Incredibly honest job they do in this shark filled environment full of dishonest white collar crime .
I thank you Oliver & co long may you fight for what is right .

[Brain]

I think this whole saga as it continues shows how inept the financial market is in the N Z especially the NZX , and have they learnt anything except to cover their own backs & make money out of the shareholder's / Investors Dilemma No in fact they have not helped one bit .
The absolutely one Organization in this to show credibility and honour is the New Zealand shareholders association what an Incredibly honest job they do in this shark filled environment full of dishonest white collar crime .
I thank you Oliver & co long may you fight for what is right .

Nobody would disagree with you Ralph. The board resigns for some unknown reason and the end result is that the company is delisted due to non compliance with NZX rules essentially throwing the shareholders to the wolves. I would of thought that a statutory management type arrangement would have been applied.

In my opinion at the very least the board should have made public their reasons for resignation. There is a long list of reasons why New Zealanders should not invest in the sharemarket. Feltex ,Intueri. CBL, QEX ………………

I hope that all who read and post on Sharetrader are members of the NZSA and if not ask themselves why not.
A well funded NZSA could make a substantial difference.

[Dassets]

Sorry but 4 companies that failed with all of them relatively small is peanuts. If people do not understand the concept of diversification then they cannot complain, they should only use a fund manager. If they do understand and lost all their money then they ignored fundamental investment principles. Having been both a fund manager and private investor was I in any of those companies. Answer is no. Have I lost money before? Yes. Sorry but I do not have any sympathy for your position. Seriously though are you in bitcoin? I have heard wonders about it. A reserve currency that will take over USD et al. I tell you what I will buy all your bitcoins et al for usd$25. 01. 1 cent more than the oracle. Always best to watch what he does.

[ralph]

So So Sorry for anyone whom Invests & gets ripped off let down etc , this is a thread about QEX logistics don't care if its bit coin **** coin or whatever Losing money is a hazard .
The nzx doing the right thing is another completely different scenario to your bit coin ,try another thread for that promotion .

[Dassets]

People fail to understand that the NZX does not guarantee investment. It provides a rules framework that contains penalties. It cannot do anything more than it has and shouldn't. Investors should understand those rules and if they don't well.. I was merely pointing out other things that they should enjoy more fully.

[ralph]

No they do not, its obvious to 99.9999999999% of investors that the nzx is no guarantee to Investments within that framework .
But the penalties & rules in the case have only benefitted the nzx financially to the detriment of shareholder's & this should be handled /enforced in a manner to help protect shareholders within this format not for financial gain & covering their ass legally at the upmost .
Thanks for pointing out bitcoin I am sure you will do very well in that Dasset not for me personally maybe Ronnie Xue could buy some off you

[Dassets]

The NZX hasn't "benefited" at all. You think the NZX ever thought they would recover the costs involved in enforcing the rules. BTW I think Bitcoin is a joke. The only ones I have ever brought are to cover shorts. I short because it is obvious that it is a price wholly divorced from value and investment. It is just a study in fear and greed.