In this post, I would be explaining my suspicion regarding Lion AsiaPac. However, all views are purely my own opinion.

When we first discovered Lion AsiaPac in 2012, it was a classic case of Graham-style net-net stock, where it was trading at approximately 45% discount to NCAV. Back then, with our limited knowledge, Lion AsiaPac seemed like a fantastic find – something so clear cut, so simple to value. However, something so easily identified as undervalued might not be truly be undervalued as everyone else would be able identify it too. While I have cut my losses, looking back at the company, what is wrong with it? It is my suspicion that the company may just be funnelling money out of this cash rich company.

Related Party Transactions:

Looking under Related Party Transactions (Note 28.) we would observe that the ‘Sales of goods and services to related parties’ accounts for approximately 70% of revenues. …