Lam Sai Wing, chairman of Hang Fung Gold (870), was found dead inside the bedroom of his apartment on Bowen Road on September 26 2008. His bedroom was locked inside and the media so far does not seem to know the exact cause of death. Natural Death? Illness? Suicide? Murder?
This man is famous for his gold toilet, gold bathroom sink, and gold chariot. Kelly Chan, a famous singer who is getting married today, has been the spokesperson for Hang Fung’s retail outlet, 3D Gold, for years. Her wedding today must be full of gold decorations because of 3D Gold’s sponsorship. I wonder Kelly would feel strange or awkward if she wore jewelry supplied by 3D Gold in her wedding.
870’s share price tumbled from 1.63 to 0.65 on Tuesday due to Lam’s sudden death. And there are reports saying that outstanding loans to the company is now in technical breach because of the chairman’s death. The company has quite high leverage (debt / equity > 100%) and with the overly conservative attitude of banks in this bear environment, it is not surprising that the company may have liquidity problem if some banks decide to ask the company to repay its loans immediately.
