Petition to Delist Best World International Limited (BWL)
The Issue
We are a group of retail investors that have bought shares in BWL. This counter has been suspended by SGX since May 2019 due to accounting and operation issues in China. SGX has requested that BWL needs to obtain all licenses for direct selling in China for all the provinces that they have an operation. However, BWL has replied that at this moment China is not issuing such a license and have no idea when China will issue it. In addition, it will take BWL many years to obtain all the licenses when China starts issuing them. Though BWL has sought legal advice in China about the disclaimers issued by their auditor, Ernest & Young (E&Y); the latter has responded that “"did not clearly conclude" that its franchise business model complies with requirements of China's laws and regulations.” E&Y’s reply was published on 16 September 2021 on Business Times, can be viewed via the link below: -
Given the above, we do not see that there is any possibility for BWL to resume trading. We have patiently waited for over two years for things to work out, but we are not wealthy investors that can hold on forever. Most of us are housewives and retirees that need these monies for our daily expenses. Covid pandemic has also made it more difficult for us to obtain money from our husbands and children, our savings are running low too.
From recent financial reports by BWL, they are still doing well in terms of revenue and profit as well as have about $400 million cash in the bank. If BWL is unable to resume trading, we hope they can be delisted soonest possible to avoid other unforeseen events from happening. They are proposing to change their auditor from E&Y to Nexia and we are not sure what this will entail. Further, though no dividend was declared for the last two years the directors are receiving a huge increase in annual remuneration through their salaries, fees and huge bonuses.
In the event of delisting, SGX should appoint at least three independent analysts or valuators to value the price for delisting. The delisting price should be close to the average proposed by these professional bodies. It would be unfair to retail investors to accept a price based on the last traded price, which was artificially depressed by short-selling. In addition, BWL has greatly increased both revenue and profit during these two years.
We sincerely seek your urgent attention to resolve this issue with BWL.
Yours sincerely,
The Issue
We are a group of retail investors that have bought shares in BWL. This counter has been suspended by SGX since May 2019 due to accounting and operation issues in China. SGX has requested that BWL needs to obtain all licenses for direct selling in China for all the provinces that they have an operation. However, BWL has replied that at this moment China is not issuing such a license and have no idea when China will issue it. In addition, it will take BWL many years to obtain all the licenses when China starts issuing them. Though BWL has sought legal advice in China about the disclaimers issued by their auditor, Ernest & Young (E&Y); the latter has responded that “"did not clearly conclude" that its franchise business model complies with requirements of China's laws and regulations.” E&Y’s reply was published on 16 September 2021 on Business Times, can be viewed via the link below: -
Given the above, we do not see that there is any possibility for BWL to resume trading. We have patiently waited for over two years for things to work out, but we are not wealthy investors that can hold on forever. Most of us are housewives and retirees that need these monies for our daily expenses. Covid pandemic has also made it more difficult for us to obtain money from our husbands and children, our savings are running low too.
From recent financial reports by BWL, they are still doing well in terms of revenue and profit as well as have about $400 million cash in the bank. If BWL is unable to resume trading, we hope they can be delisted soonest possible to avoid other unforeseen events from happening. They are proposing to change their auditor from E&Y to Nexia and we are not sure what this will entail. Further, though no dividend was declared for the last two years the directors are receiving a huge increase in annual remuneration through their salaries, fees and huge bonuses.
In the event of delisting, SGX should appoint at least three independent analysts or valuators to value the price for delisting. The delisting price should be close to the average proposed by these professional bodies. It would be unfair to retail investors to accept a price based on the last traded price, which was artificially depressed by short-selling. In addition, BWL has greatly increased both revenue and profit during these two years.
We sincerely seek your urgent attention to resolve this issue with BWL.
Yours sincerely,
The Decision Makers
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Petition created on 26 October 2021