post from other forumZPP released its FY06 results yesterday, net profit down 11%. Old man Lim is promoting ZPP price by various strategies. ZPP management always say good things, cannot delieve what they say. 1. Only mentioned gross margin. Its net margin dropped to 19.7% from 24.7% in FY05. The highest is 28% in FY04, this is a big trouble. 2. Not mentioned OEM gasoline engine contract any more, 100% failed. Who's fault? Big mouth Lim or Xue YueWen? Product quality? 3. Cash rich company, S$0.08/share, but FY06 didnot declare any dividend. Previously I expect 1 singpore cent per share. This is very disappointing. ZPP's history is too short, has high risk, no consistent dividend policy. 4. 70.8m new share placement to raise S$14.4m, for what, FY06 ROE dropped to 22% from 38% in FY04. If ZPP cannot use the extra capital S$14.4m efficiently, then its FY07 ROE will drop further. Xue YongWen and Old man Lim have a lot of other businesses that need money. Xue YongWen has pulled out RMB 90m from ZPP under (more...)