Film-maker B&S tumbles 94pc in rapid sell-off
Firm says it has nothing to disclose as market speculates on massive short selling
Shares in B&S Entertainment Holdings plunged 94.12 per cent within an hour yesterday, leaving company officials desperate to explain the steep sell-off.
The Growth Enterprise Market company, which makes and distributes films, fell to 4.7 cents from 80 cents between 2.30pm and 3.30pm with 201.43 million shares worth $10.36 million traded.
Five minutes before the close of trade, chairman Siu Luen-fat told the stock exchange: 'The board confirms that there are no negotiations or agreements relating to intended acquisitions or realisations which are discloseable under ... GEM listing rules.'
Attention had focused on independent non-executive director and celebrity Kathy Chiu Kam-hing, who denied the share-price fall was due to her unloading stock after failing to meet a margin call.
'Don't blame me. I really don't know what happened,' Ms Chiu said yesterday from a dental clinic. 'I don't have any shares in the company.'
B&S is the latest thinly traded small-cap to grab headlines after suffering steep market losses. Other cases include Far East Pharmaceutical Technology, Zhejiang Glass and First Asia Capital.
Market watchers speculated on the possibility of massive short selling or that a third-party owner was forced to dump shares in a hurry.
'As the company is still making money and no [managers] have been arrested, it's possible there is a short-selling scenario,' Tung Tai Securities associate director Kenny Tang Sing-hing said.
In the three months to March, B&S reported a net profit of $2.41 million on turnover of $5.3 million.
The company has gone through more cast members than the production of Wong Kar-wai's futuristic romance 2046.
In January, independent non-executive director and audit committee member Kan Ching-duen resigned from his posts, which were later filled by Li Chi-fai. The resignation of company secretary and accountant Simon Ho Siu-man followed in February.
In March, Kim Eng Capital (Hong Kong) quit as continuing sponsor, with RexCapital (Hong Kong) taking up the role. The contract with RexCapital terminated on August 1, and South China Capital now acts as sponsor.
In July, Ernst & Young resigned as auditor. Charles Chan of Ip & Fung is handling the books. B&S is 42.6 per cent held by Coxwell Corp and 10.2 per cent by Baserich International. Actor Sammo Hung Kam-po is a non-executive director.
