Posted by sense maker > 2014-03-01 22:57 | Report Abuse

Since years ago, most of the cash and bank balances have been moved in for quarterly closing and out thereafter. It would be interesting to see what would the price of the private placement be. The RM500m is just for show to hoodwink minority shareholders but the private placement is likely real if it goes for around 70sen a share. XQ cannot stand any test of due dilligence which explains why it is not taken private by either the boss or any other corporate raider.

Posted by cpng > 2014-03-01 23:07 | Report Abuse

转贴
Another china company bites the dust...Eratat Lifestyle makes soles, shoes and clothing. On it's financial records it state that it has 577 million RMB in in's bank accounts.
This amount was verified by the auditors & board of directors on January 2014 via the following.
1. Personal visit to Agriculture Bank of China and get print out from the bank system from the Branch Manager
2. Login and checking of the amount in the online banking system
3. Letter of confirmation of the amount in the accounts from the bank

Due to the missing workers and the CEO. The interim CEO makes further probes into the bank account found that the cash reported is not in existence. The share is currently suspended and awaiting special audit.

Fair warning to high cash holding, super profitable, super cheap PE 1-2x, china based small caps...