Posted by 3iii > Jan 1, 2016 09:40 AM | Report Abuse
The company has a lot of cash in its balance sheet. The management should declare yearly dividends, the company has afford to do so. Companies that pay regular dividends impose some discipline on the managers in the way they manage the assets of the true owners, namely, the shareholders.
After talk so much u still believe the cash is there ah???
Basically, SC can do nothing so long as external auditor signed off the accounts. The external auditor audited the accounts based on RELIABLE evidence available whether generated from internally or externally to form its view on the accounts. The main problem is the China companies are capable of being too resourceful. They can buy whatever evidence that the auditor needs from third party. so what can external auditor do? Keep quiet and collect audit fees la...haha
If you are the auditor for XingQuan, which item in the balance sheet will you focus on? Of course, the cash balance. It is so huge and material. Has the auditor qualified the accounts so far? If accounting fraud blows in the future, perhaps, the auditor will be held accountable and liable.
I think is for certain, the management really lack of skill to manage its cash stockpile to optimize income. its past three years interest income is consistently at 0.35% of its two years average cash balances. Does this make sense?
You want to audit cash balance in the bank? No problem for the bank to give a formal confirmation for 900 million. It is just a paper only ma. Not a big deal. Anyway, a small money can buy a piece of paper worth 900 million in China. Haha
Why blame them(China-based stocks) only? Do all other stocks(cash rich and profitable) give dividend as well eg Comcorp, Frontkn, etc?
Posted by Ben Gan > Jan 1, 2016 12:29 PM | Report Abuse China-based stocks are scary!!! Don't look at XinQuan alone, look at all those listed not only in Bursa, but in Singapore and US as well.
Ask KYY to employ a biz scandal Detective & legal adviser to invest quietly. China has very good detective . Rather than sitting by not known what yhey try to do with the money , why not spend another few mil. Ti dig in their motives.
Can't Our Bursa stand out in corncerning the most Malaysian shareholders ? They should hv measured every necessary pro & con before this so call listed on klse and start receiving $$$ rite? Got to go to Bursa protest, otherwise this makan gaji buta fellow will ignoring the minor shareholders benefit. Bring it to another level KYY. Its hard but rather than dying without an answer.
For retailers they can just cut loss and left easily...but Uncle has stuck too deep into the mud (15% or more shareholdings). He even increased his shareholdings recently.
Unlike VS, Latitude, LiiHen and others, funds (fund managers as well) are following as they do agreed and believed with their fundamentals... thus u see the prices are breaking new high...Unfortunately Koon Koon thought that's due to his personal influence and he again tried to do it on Xinquan.
Now the Co is proposing for a rights issues...Shall Koon Koon follow? If follow then he has to put more fund into it (and stuck more), if dont follow then will see dillution in his shareholdings and also in share price...
Actually ks55 already hinted. Your trade payables at all time low ... inventory at record low ... and still want to buy knitting machines kah ? Ask any factory, they will tell u they will only buy if they cannot keep up with demand. Here the opposite is happening with absurd EPS for the Quarter to boot.
Go back to my original question ... how liquid is the cash hoard (assuming it is real ?). That money put in FD would have generated funds to pay dividend but ... wait come back and slap investors with RI some more.
I think the cash hoard has been used as collateral for their misadventures in china stock market. Probably up to their ears in debt. Local china bank also dont want to lend them money.
Strange part of all is that they have been at this game f or last 5 years going into 6th year. Malaysians are not only senile but patient and forgiving ... but i am not like my countryman.
and a day b4, KYY release an article on bragging why he buy XinQuan. the very next day walk out disappointed at the AGM. looks like its his typical modus operandi at work again.
may be he about to sell off then need to goreng so that got others to buy his portion. when everybody bought, he dump. After dump a lot, he not scare to shoot in AGM. Aiya, this is how he made money from small fishes lo
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murali
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Posted by murali > 2016-01-01 09:43 | Report Abuse
Posted by bonescythe > Jan 1, 2016 09:18 AM | Report Abuse
1 day, a fire incident will come and a big portion of cash that is withheld in tye factory will he burned along. Hahaha
Very rare I would agree with Bone Bone..this time with all my hands n legs up....