I was talking to my uncle a few nights ago and we stumbled on the topic on this listed company called Town Health 3886.HK. Apparently he used to be dorm mates with one or two of the executive directors, who are also doctors. I never had any interests in this company, so not having ever to look at its books, but only having heard of its name briefly. Since my uncle knows them, so I might as well take a look at the company. And then I found out it is a piece of shit.
A few points I might want to highlight from my scant memory:
1. Its core operations barely makes any profits, but it is still cash flow positive.
2. The CEO overpays himself enormously, showing no entrepreneurial spirit at all. In fact, I think everyone on that board is overpaid. They just like to milk the investors.
3. The company is pretty much supported (or rather destroyed) by stock market and property investments, or more precisely speculation.
4. The Chairman is the daughter of this “king of toys” self-made billionaire.
My uncle also told me the executive directors got many famous serial entrepreneurs to invest into their company early on, like 蔡志明 the king of toys, and Li Ka Shing’s son. Well of course 蔡志明 would invest in it, his daughter is probably completely seduced by this sly-mouthed doctor. He probably spoilt his daughter pretty badly anyways. And besides, it wouldn’t be a lot of his money anyways, probably way less than 1% of his wealth.
From the information I gathered online, I would probably infer the leaders of Town Health to be intelligent yet showing no sense of entrepreneurial spirit, and cunning in their speech yet showing no substance in the long term. In other words, they probably sucked up their way from very successful people’s children to achieve what they got now. They are kind of like scavengers begging for the tiny morsels of leftover food. They take their tiny cake and eat it too, leaving none for the unintelligent minority shareholders.
This turned out to be quite true as confirmed by my uncle who lived with them during university years.