Hi all, while we wait for gassin to upload the recording I thought i'd briefly post some of the notes i made at the meeting.
1. Acquisitions: yes they are looking at carefully acquiring other businesses that may not be limited to menswear (could be ladies wear etc.), they seemed very selective in looking at suitable businesses in order to maximise shareholder value.
2. BBY - no issue, they are looking at another firm to replace them, which will be a good thing as they didn't really do anything for us anyway.
3. Dividends - they do want to reward shareholders with a dividend but reiterated that there are big opportunities in China (and maybe Australia) to deploy the cash more effectively (i.e acquisitions/expanding their store network etc.)
4. They are aware they need to 'sell' the company to investors more and that the company is very undervalued from the board's perspective. This point was raised a lot, they are aware they need to be more open in meeting shareholders concerns and that these meeting were a step in that direction.
5. Listing in Australia was done to boost sales as their brands are percieved with prestige, also increases relationships with the Chinese government and potential financiers.
6. Potentially looking at partners in Australia to distribute/have a store here.
7. Products are very real, we were shown glossy books containing the Pandist/Agueseadean catalog and all the clothing range. We also recieved a product for ourselves, which i personally think is very high quality and impressive.
8. Escrow - CEO does not intend to sell his shares after the escrow period under any circumstances, in fact he wants to buy more but there are potentially legal hurdles to that in the short term.
9. Online sales - reiterated that online distribution has begun (Alibaba, ICBC platforms etc.) and will improve in future, along with the pandist website.
10. Contingent liabilites - they are ALL GONE.
11. Renovations - stores generally do not need to close at all and it only takes one or two nights to complete each store's renovations.
Hope this helps some people, definitely suggest attending the Melbourne meeting if you are able. Thanks.
