AV Concept was a deep value stock (super cheap, priced way below the book value of the company) when we invested in end 2017. It was listed on HKEX and were in the business of distributing Samsung electronics components ((i) CMOS image sensors (ii) multi-layer packaged
chips, and (iii) ARM processors) to Chinese mobile phone manufacturers.
On 30 Dec 2019, the management halted the trading of AV Concept shares pending an announcement.
We were excited and guessed a delisting offer might be on the table.
But we were disappointed. The next announcement came on the same day, 30 Dec 2019, about the under-declared shareholdings of the insiders. There were some bonus issues and purchases from the open market that have not been accounted.
Previously the insiders owned 30.98%, but it should be 40.68% and the announcement was to reflect the new ownership figures.
We thought that was it but the trading of the stock remained halted.