AGM Review

Hello peeps, just finished the AGM went to buy lunch and am now in some weirdo internet cafe. On to business.

Not many people attended the AGM, I did not count but perhaps 12. Two people from Grant Thornton where present. All the directors where there as well as the CEO, CFO and the CEO's son.

Wayne introduced the AGM like usual and then the CEO gave a speech which was translated by one of the other directors. After that question time began.

Now considering how many people on here wanted tough questions to be asked not much was asked at all. However it slowly got rolling.

I will paraphrase the questions and answers

Q1. I am worried about the slowdown in China will have on SBB profitability.
A1. (CEO) Yes it will have an affect on profitability but we are expecting that the investment in new stores and renovations etc. will counteract this.

Now after this we got a trouble maker. The guy was dressed like trash, was shaking a lot and did not have an education. He had a green voting slip so he was a shareholder but could have bought minimal numbers of shares so who knows. He was aggressive, arrogant and rude.

Q2. You dont have 29 million in the bank the interest is too low.
A1. CFO, the interest earned in China is very small compared to Australia we get about 0.3%
Q3. Same guy (Did auditors even check?)
A3. Wayne Reid, GT went to China (interupted by GT executive)
GT executive clearly anoyed at the low level question said
"Yes we went to China personally to check everything. We went into each and every bank that the company has its accounts in and got a confirmation stamp given to us in front of us."

Another question from the same guy about CEO salary increasing. CFO replied it had not increased only on paper because AUD is worth less so same YUAN wage is more in AUD.

Oh also. The same guy complained about GDP growing 7% but sales only 6%
The CEO said you can not compare them as the apparel industry has suffered lately due to the large amount of online apparel sites stealing market share. Despite all this though SBB had outperformed its rivials.

Basically this guy was a rude hobo and got owned on every single thing he asked and then had to withdraw his questions when he got owned like the bum that he is.

Question 4 some other dude
What are you going to do to increase the share price?
CEO: We cannot manipulate the shareprice we can only focus on the business
Some shareholders dissagreeing etc.
Wayne says they are working hard by going to Sydney, Melbourne, Brisbane to meet and talk with shareholders etc.

Now some most important information about strategy for the group.
The CEO wishes to level up the brand into a more premium brand so that the products can sell for higher amounts and hence increase margins. Renovating stores is part of this plan.
The CEO says they will continue to acquire more franchised stores in the current year. They are also spending more on inhouse R&D to improve the products.

Warehouse with HQ is fully operating and houses the Chinese directors ect.

For those who are so upset that the CEO wears clothes you do not like, I can inform you he wore a suit to the meeting and had very nice looking shoes. He looked quite handsome IMO. All of them had quite fashionable bags and stuff. The CEO was showing of his suit and tie showing the Pandist label on it. Everyting he wore was Pandist.

I was lucky in that the CEO's son sat next to me. He was watching and took some pictures of his father. He showed me on his Ipad some of the newely renovated stores. These had been pictures I had not seen on the internet and they looked excellent.

I talked to Wayne Reid who was upbeat about the prospects of the company. He informed me of the troubles they had, had with Novus and BBY. He showed me his belt which was also a Pandist belt and looked nice. He told me about a 100 store fashion network in Australia that had seen the Pandist products and said they where of very high quality. He talked about the HQ which he said looked equisit from the inside with marble floors etc.

Wayne also said that the orginal escrow selling was commited by 10 people. 1 of them started it and all of them decided to copy him and sell also. He said that before the dump occured Novus was attempting to sell a 20 million share parcel but obviously could not do so at the 20 cent price at the time.


I recommend EVERYONE go to the Melbourne and Sydney one as you will get to see the CEO face to face and ask questions and assess character. The CEO displayed honorable character IMO and individually shook every shareholders hand. We also recieved a Pandist product as a gift.