FormerXBC Inc XEBEQ

Utilities Utilities - Regulated Electric

Xebec Adsorption Inc designs, engineers, and manufactures products that are used for purification, separation, dehydration, and filtration equipment for gases and compressed air. The company operates in three reportable segments: Systems, Corporate and other, and Support. Its product lines are natural gas dryers for natural gas refueling stations, compressed gas filtration, biogas purification, associated gas, engineering services, and air dryers. The company's geographical segments are United States, Canada, China, Other, Korea, Italy, and France.

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FormerXBC Inc > PPI is the price of products out of factory. XBC has to buy

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Comment by mingzhuon Jun 14, 2022 12:39pm

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Post# 34755393

RE:RE:RE:RE:PPI is the price of products out of factory. XBC has to buy

Thank you on that info from the last CC. This is just common sense. Evetbody increases price. If you do'nt, you have the trouble. Now shreholders have to ask how much it is creasing in next CC. It should have at least 25% gross margin to make the project profitable. . This is not charity,but business

tony08 wrote:

Gann999 wrote: Isn't the order right in UEC wheelhouse and is just making identical units over and over again like an assembly line versus legacy which was custom built units tailored to each customer's specific needs and hence each one had a learning curve and different problems arise. Not sure why you think the new order would ve negative margins it won't be. You have your cheap shares now just buy them and shut it if you want in.

mingzhu wrote: investors do not want CEO to tell them one year later that this becomes another legacy project with negative margin.

mingzhu wrote: products to build projects at such price. It gave the bid long before the winning it. So XBC must raise the price at least 10% as well to build the big project. CEO has to answer the question in next CC.

Correct me if I'm wrong, but in addition to being costum made, in the legacy contracts, there were financial penalties included if Xebec did not meet the expected delivery times and as the pandemic took place with all the supply problems that followed, these contracts ended up being very expensive to produce.

In addition, to address Mingzhu's concerns, in one of the last meetings, management said they would adjust their prices to the market in order to improve their margins...... Whether they will succeed remains to be seen.