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The Insider
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Crocodile Garments and NetDragon bosses reap gains from share disposals

China Regenerative Medicine and Sky Light directors boost holdings amid quiet insider activity

PUBLISHED : Sunday, 31 July, 2016, 5:15pm
UPDATED : Monday, 16 January, 2017, 10:28am

Buying among directors fell for a third week while selling plunged, based on filings on the Hong Kong exchange in the last week of July. A total of 20 companies recorded 94 purchases worth HK$142 million, compared with seven firms with 31 disposals worth HK$10.9 million. The figures were sharply down from the previous week’s 35 companies, 150 purchases and HK$194 million on the buying side and 24 firms, 70 disposals and HK$105 million on the selling side.

Buy-back activity also dropped for a third week with 13 companies that posted 70 repurchases worth HK$209 million, compared with 19 firms, 94 trades and HK$595 million previously.

Among the significant trades last week were purchases in China Regenerative Medicine International and Sky Light Holdings following the sharp fall in their share prices and sales in Crocodile Garments and NetDragon Websoft after steep price gains.

Biomedical and health-care product developer China Regenerative Medicine bought back for the first time since listing in July 2001 with 3.4 million shares purchased from July 26 to 29 at 29 HK cents each. The trades were made on the back of the 47 per cent drop in the share price since October from 55 HK cents. Despite the fall in the share price, the counter is still up since September 2013 from 16 HK cents.

Investors should note that executive director Dai Yumin acquired 61.7 million shares from January to February at 33 HK cents each, which increased his holdings to 23.75 per cent of the issued capital. Last year, he acquired 19 million shares from December 29 to 30 at 40 HK cents each and 11.9 million shares in May at 67 HK cents each.

The counter closed at 29.5 HK cents on Friday.

Founder, chairman and chief executive Terry Tang Wing-fong recorded his first trades in digital device and solution provider Sky Light this year with 4.1 million shares purchased from July 19 to 22 at an average of 86 HK cents each. The trades increased his holdings to 53.67 per cent of the issued capital.

The disposal [in NetDragon by Thomas Liu] was made on the back of the 58 per cent rebound in the share price

The purchases were made on the back of the 31 per cent drop in the share price since April from HK$1.25. The counter is also down since January from HK$2.33.

Tang previously acquired 2.5 million shares from November to December at an average of HK$2.49 each. The purchases since November are his first trades since the stock was listed in July last year. His purchase prices were lower than the initial public offering prices of HK$2.68 to HK$3.38.

The counter closed at 88 HK cents on Friday.

Chairman and chief executive Lam Kin-ming unloaded shares of garment manufacturer and retailer Crocodile Garments at sharply higher than his acquisition price in June with 300,000 shares sold on July 25 at 90 HK cents each. The trade reduced his holdings to 50.42 per cent of the issued capital.

He previously acquired 625,000 shares on June 24 at 68 HK cents each and 200,000 shares on January 11 at 85 HK cents each. Before these trades, he acquired 50,000 shares in August last year at 80 HK cents each and 1.2 million shares from August 2013 to May 2014 at an average of 43 HK cents each.

The counter closed at 83 HK cents on Friday.

Non-executive director Thomas Liu Sai-keung recorded his first trade in online game developer NetDragon since April last year with 30,000 shares sold on July 25 at HK$27.60 each. The trade reduced his holdings to 0.18 per cent of the issued capital.

The disposal was made on the back of the 58 per cent rebound in the share price since January from HK$17.48. It was also made at a huge profit, based on the 200,000 shares that Liu acquired on July 20 through the exercise of options at HK$4.60 each.

Liu previously sold 300,000 shares from March to April last year at an average of HK$18.68 each and 80,000 shares in June 2013 at HK$18.30 each. Before these disposals, he acquired 99,000 shares in December 2010 and 49,000 shares in December 2009 at HK$5.07 each.

Also negative last month was non-executive director Lee Kwan-hung with 14,000 shares sold on July 5 at HK$23.70 each, which lowered his stake to 0.2 per cent of the issued capital. He previously sold 270,000 shares from April to July last year through options-related sales at an average of HK$25.82 each.

The stock closed at HK$25.20 on Friday.

Robert Halili is managing director of Asia Insider

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