Thursday, October 17, 2019

Zhu Minshen's Top Group NSW LPAB review "went smoothly" despite not providing a cashflow statement LPAB ignores cashflow despite massive fall in market cap, falling cash holdings-Chairman of the LPAB was once a leading commercial QC,so LPAB actions hard to comprehend

by Ganesh Sahathevan

Zhu Minshen's Top Group recently released its Annual Results for the year ended 30 June 2019.The HKEX announcement did not include a cashflow statement, which is usually provided by listed companies together with the profit and loss statement and balance sheet:

The results announced do show that  cash and cash equivalents fell from  HK  47,367,000 to HK42,352,000. but this can only be discerned from the Balance Sheet. 

Despite that exclusion, the dramatic collapse in market capitalisation and and the history of poor operating cashflow , Zhu was able to inform the the market that the recent review of Top Group's accreditation by the NSW Legal Profession Admission Board, which is chaired by the Chief Justice Of NSW Tom Bathurst and overseen by the AG NSW Mark Speakman, "went smoothly".
In the words of Zhu Minshen, as  chairman and CEO of his Top Education Group Ltd:

Bachelor of Law Re-accreditation

The scheduled re-accreditation process of our Bachelor of Laws (‘‘LLB’’) went smoothly. On 27 June 2019, TOP received formal notification from the Legal Profession Admission Board of New South Wales (‘‘LPAB’’) to accredit TOP’s LLB for a further five-year period commencing from the notification date.

The LAPB has a duty to ensure that  law students interests are protected but it is hard to see how its conduct in the matter of Top Group and Zhu Minshen is consistent with that duty.

Tom Bathurst, the Chairman of the LPAB,  was this country's leading commercial silk (or QC) before he became Chief Justice, so his conduct and that of the LAPB in the matter is hard to comprehend. 


Monday, May 27, 2019

Top Education Group share price movements require explanation from NSW LPAB, TEQSA,and AG Speakman; Top's declining cash flow from operations adds to worries

by Ganesh Sahathevan

It has been previously reported on this blog that the NSW Legal Profession Admission Board (LPAB), and the Tertiary Education Quality and Standards Agency (TEQSA) have refused to provide answers to queries from this writer about the persons and processes involved in granting Top Education Institute Ltd the "first and only" license to issue Law degrees that qualify recipients for admission to practice law in NSW and in Australia:
TOP Education Institute's Bachelor of Laws : Political donations,HK Stock Exchange IPO seem to have left regulators confounded, speechless 

As reported, Top Group is controlled by one Minshen Zhu, better known for his political donations to both sides of politics.These include donations to the NS W Liberal Party in the 4 months or so prior to the LPAB granting Top Education Group its license to issue law degrees. 
Top Education Group made donations worth AUD 44 275 to the Liberal Party NSW Branch. 

NSW Attorney General Mark Speakman oversees the LPAB and the legal profession in NSW.He is also a member of the Liberal Party and the elected Member Of Parliament for Cronulla.

Top Group was listed on the Hong Kong Stock Exchange after it was granted the right to issue LLB degrees. Its prospectus contained a number of references to the fact that it was the "first and only" private company bestowed that right.

The hart below of Top Group's share price over the past year (it was listed in May 2018) shows clearly how volumes traded spiked just after listing, and how the share price has fallen from a high of HK 96 cents to a low of HK 27 cents.It currently trades in the HK 30-35 cent range.

That sudden spike, and the dramatic fall is share price (and market cap,no new shares have been issued) would concern not only investors but also students, who have placed reliance on the LPAB,TEQSA and AG's impramatur. Regardless of that , all three have chosen to remain silent.

Their silence is even more troubling given movements in the Top share price which correlate to regulatory announcements.

In its annual report for the year ended 30 June 2018 , dated 24 September 2018 ,Top's management stated :

On 5 September 2018, we received a formal advice from Legal Profession Admission Board of New South Wales (‘‘NSW LPAB’’) that the re- accreditation process of our Bachelor of Laws will commence in September 2018 and may take more than six months to complete. This accreditation follows the normal cycle of re-accreditation. 

Readers can see from the chart above that on or around 5 September 2018 Top's share price (which was trending downwards) went into another steep fall, before spiking approximately 30%,from a low of about 30 cents to a high of about 40 cents.

The LPAB and Speakman decided to issue Top that license to grant LLB degrees despite an oversupply of law graduates and in doing so exposed themselves to the complexities of regulating degree issuers whose stock is traded on a stock exchange. Their actions will come under the scrutiny of investors worldwide (for the HKSE is an international market) regardless of their past practice. 

Top's declining cash flow from operations would be of concern not only to investors but also students who have enrolled in the Top LLB based on Speakman and his LPAB's impramatur.

Cash flow
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Posted 4 hours ago by Anonymous

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