FormerXBC Inc XEBEQ

RE:RE:Xebec and Shenergy Strengthen Partnership to Develop China’s

[Resilience19]

@GGreen, having worked in several African countries over the past years, I've indirectly observed several of the "36 Stratagems" used by the Chinese in doing business - both with governments as well as with established businesses.  From speaking with people having been on the receiving end of those tactics,  feedback received is that if given the choice they would, in retrospect, much prefer dealing with Westerners than with Chinese.

The issue of XBC IP is a concern I raised with IR several months ago, but was reassured that there was no worry to have. This said, I tend to agree with you that we, likely, manage expectations in terms of profits stemming from work there. Whatever does come should simply be considered as icing on the cake - for the time being.

GGreen wrote: I agree it does look like they're just moving the peanut shells around. While I understand the potential of possible opportunities in China (and possible benefits from having a former Deloitte China mgmt committee member on the board of XBC) I have been tainted by my experience with Chinese businesses (and inherent role of Chinese gov't in them). Prior to going to China we had a draft LOI with 90% of terms in place. Got there and all of a sudden they started by expanding the scope of work by 2x and then proceeded to reduce price by 40-50% and change the payment terms to push them back to later milestones. It took use 3 full days of meetings to get us to a point where we were still comfortable moving forward (after considering to walk away several times). In then end LOI got signed, they wanted upfront info and IP (which we wouldn't send until upfront $$ was rec'd). They never sent the upfront $$ but they didn't get any upfront data either! We then went our separate ways (with a much better appreciate of business in China). That was in the aerospace sector but I had a similar experience in the biotech space - so excuse me if I'm skeptical of rah, rah of China partnership announcements. As a result I significantly discount (if not even write-off any China partnership plays including vaccines and electric vehicles).

WRT to XBC - that's 5 years post-LOI. I'll look through filings for update on progress from China but I don't recall much tangible progress BUT I could be wrong (it's certainly NOT taking up much air time on the quaterly calls).

BTW - I read up on the "36 stratagems" (Google it) before going on the business trip to China. I was in awe as I saw many of them in action as we visited the company (often accompanied by member of the "party"). I couldn't believe it. All I kept repeating to myself was "WOW they really use these tactics" including non-boardroom tactics - crazy!