agree fully with bearsong. If you are shareholder, you really should complaint with a report sent to Bursa and even Bank Negara. These china companies listed in Bursa are really treating Malaysians like big stupid ignorant water fish! Get some respect back by making reports! It's no point to shout at AGM. Shout at Bursa and Bank Negara.
Shd request for independent audit on the financials before approving the right issue. Where is the need for further cash injection if the firm has RM886mil CASH. This amt is even higher than the year revenue which is illogical@#$%
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4879769 -"The Company wishes to clarify that the cash balance of RM886.55 million is mainly reserved for working capital, and as explained in the announcement dated 25 September 2015, Xinquan requires sufficient cash buffer and a high level of working capital to ensure minimal disruption to its operations in the event of a liquidity crisis or a sharp economic downturn. The purpose of the Proposed Rights Issue with Warrants is to raise funds for Xinquan’s capital expenditure requirements whilst maintaining a healthy level of cash balances at all times" ... Is this acceptable by authority? What s shit reply!@$# The cash in hand is already sufficient to cover more than a year revenue!!!
1. Given that the par value reduction is to facilitate the issuance of Rights Issue shares and there are no accumulated losses by Xingquan, please provide further justification for your Company to undertake a steep par value reduction from US$0.10 to US$0.01 each.
The purpose of the par value reduction is to provide the Company with greater flexibility to price the Rights Shares at an attractive discount to the market price at the price fixing date to be determined. The recent slump of the value of RM against the US$ has restricted the ability of the Company to price the Rights Shares and Warrants B attractively as the current par value of Xingquan is US$0.10 (equivalent to approximately RM0.43 based on the BNM’s exchange rate of US$1.00:RM4.3385 as at the LPD) and the Company is not allowed to issue shares below its par value under Bermuda Law.
Reducing the par value of Xingquan to US$ 0.01 will provide a larger buffer to cater for a situation where the RM further depreciates against the US$ and/or Xingquan’s share price falling below its present trading price.
Further, the steep par value reduction would not result in any change to its net asset position and any adjustment to the shareholder of the Company.
2. Your Company has represented that it has cash and cash equivalents of approximately RM886.55 million or equivalent to RMB1.457 billion ("CCE") as at 30 June 2015. In this respect, please further substantiate the needs to raise RM26.94 million (Minimum Scenario) or RM50.71 million (Maximum Scenario) via the Proposed Rights Issue with Warrants which represents only 3.04% (Minimum Scenario) or 5.72% (Maximum Scenario) of the CCE respectively.
The Company wishes to clarify that the cash balance of RM886.55 million is mainly reserved for working capital, and as explained in the announcement dated 25 September 2015, Xinquan requires sufficient cash buffer and a high level of working capital to ensure minimal disruption to its operations in the event of a liquidity crisis or a sharp economic downturn. The purpose of the Proposed Rights Issue with Warrants is to raise funds for Xinquan’s capital expenditure requirements whilst maintaining a healthy level of cash balances at all times.
In addition, the available cash balance may also be used for future business expansion into related businesses, in particular, acquisition of foreign brand(s), if and when the opportunity arises.
3. Based on the CCE of RM886.55 million as at 30 June 2015, it is noted that the interest income received, based on the annual audited accounts as at 30 June 2015, is only RMB4,618,000. In this respect, please provide further clarity as to why the return on interest income is so low.
The Group has placed its cash balances in savings accounts with licensed banks in China which carries an interest rate of approximately 0.35% per annum. The cash is placed in savings accounts as the cash is not idle and is required to fund Xinquan’s day-to-day operations.
Answer given by Xingquan on cash call. Is their account in fraud? Are you sure local stock don't have same question if they cannot give dividend even their account show huge cash balance? If our Bursa Malaysia is good and take care of minority shareholders in Malaysia I hope they don't mind conduct special audit on one(or all even better) of China counters listed companies here cash balance(perhaps having a trip to China?). After all they are the one approving China companies listed here(to earn some fees?). A lot of minority shareholders has suffered huge losses investing in those companies by silently cutting loss. If BN lose more votes next GE due to such reason should blame Bursa Malaysia as one of the culprit. http://m.thestar.com.my/story.aspx?hl=Xingquan+explains+rationale+for+cash+call&sec=business&id=%7BEA8A9127-173D-4597-A832-7DA06C148176%7D
Salted fish still trap here ah? Last time asked ppl buy 1.50, now alredi 0.50. Still dun want sell? Like your btm? Buy 0.45, trap now 0.30 still dun want to sell ah?? Later macam ini xingquan loh!
I ask why maestro like them also fail in China stock? We can learn something from others failure. For their case I only have one conclusion, they have emotional when they spotted a cash rich China stock , and they think cash is real. Also they are chinaman, and they feel attached with China companies listing here.
Market cap is RMB265m (or RM162m). Cash is RMB1.450 billion. Shareholders' fund or NTA RMB1.900 billion. Despite its explanation to Bursa on why it need to raise a rights issue of up to RMB82m,
if you are the major shareholder, don't you want to buy back your own share? Say, today, I buy up 100%, RMB265 m, Stop all businesses, pay back all loans and debt, still have hard cash of RMB1.188 billion. Distribute it back to my self? Pay RM265m gain RM1,188 million, 4.48x capital gain.
I hope most China companies is different from Xinquan. Even if Xinquan represent 10% of listed companies of China, it will be Disaster.
The factory and business may be genuinely shown to outsiders/shareholders. However, the cash keep in bank itself may not be truly represented. RM 886mil in bank and proposed to raise a right issue of RM 50mil is totally not logical. There is no need a PHD to analyse this company already know this is idiot.
Hidden agenda by major shareholders n gang plan is to buy back more shares ......... watch space comes after AGM , price expect to hit North fast !!! Trade at yr own risk lohhhhh
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MQ Trader 3224 views | 3 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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fong7
647 posts
Posted by fong7 > 2015-09-28 03:29 | Report Abuse
agree fully with bearsong. If you are shareholder, you really should complaint with a report sent to Bursa and even Bank Negara. These china companies listed in Bursa are really treating Malaysians like big stupid ignorant water fish! Get some respect back by making reports! It's no point to shout at AGM. Shout at Bursa and Bank Negara.