GREY:ADEXF - Post by User
Comment by
Greenandgold.on Oct 30, 2011 1:19pm
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Post# 19193621
RE: RE: RE: RE: XinXing's size
RE: RE: RE: RE: XinXing's sizeXinXing's a solid company. Market cap of US $2.3 billion, net profit of US $213 million in 2010. Total foreign investment activity of US $14 million in 2010, including the AXI deal.
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XinXing is state-owned, just like thousands of other Chinese companies. State ownership does not equal unlimited access to funds. XinXing, if it wants to raise capital, has to do equity raises just like every one else. Their last big private placement was in August 2009, issuing 300 million shares which brought in proceeds of US $54 million.
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All of this comes from their 2010 annual report, available at their website. Google translate works fine.
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XinXing's vehicle for investing in AXI is a 70/30 joint venture with a company called Huaxin.
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Again, it's a solid, profitable company, but their revenues and market cap are dwarfed by the BaoSteels and the WISCO's of the marketplace. Do they have easy access to US $1 billion? Not likely. Does US $50 million mean a lot to them? Hell yes, that's why their due diligence is taking so long.