Ann: Annual Report to shareholders, page-120

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RabbitRoger

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20/04/19

20:43

Post #: 38218232
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Originally posted by peterpanned: ↑

I have not purchased (thankfully) but have been teased by this stock a number of times in recent years. Am wondering whether the following note from ann report indicates the comp may be wound up some time and aussie investors somehow duped of all their $. ....regards

From note 2.1 of annual report...........

"The Chinese RMB is not freely convertible into foreign currencies. Under the People’s Republic of China (‘PRC’) Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Group is permitted to exchange RMB for foreign currencies through banks that are authorised to conduct foreign exchange business following regulatory approvals.The continuing viability of the consolidated entity and its ability to continue as a going concern is dependent upon the consolidated entity being able to access and utilise the funds held in banks and financial intuitions in the PRC to settle debts incurred in other jurisdictions including Hong Kong and Australia. As a result, there is significant uncertainty whether the consolidated entity will continue as a going concern and, therefore, whether it will realise its assets and settle its liabilities and commitments in the normal course of business and at the amounts stated in the financial statements."

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It’s pretty clear the stock is either a zero or a Disallowed. What’s not so clear are the probabilities of either outcome. All things considered, the probability of zero seems significantly higher. But still, it remains interesting.

XPD Price at posting: 1.2¢ Sentiment: Hold Disclosure: Not Held
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