Hi, Relaxing,
I agree with you that the amount for amortisation of land use rights seems rather low. Things really are not going well for this company. In its 1Q11 results, the company stated that it expected the economic climate and business conditions (with rising raw materials & labor costs) to remain very challenging in the next reporting period and the coming year. The commencement of operations at its new plant in Guangzhou would also be deferreduntil such time when conditions are more favourable. On the construction of its new production facilities in Zhengzhou to replace its existing production premises, the first phase construction work had been completed and the second phase work had begun. The completion of the entire facilities was scheduled for end 2013.
The huge cash pile of Synear would likely be depleted by the replacement of its existing premises. With its EPS for 1Q 11 at only 2.3 cts (RMB) and now battling tough business conditions, Synear is one S-chips that is best to stay clear from as the risk of it becoming a “lame or sick duck” is likely to be very high.
dear ZEN: take care.... nobody really can be sure of anything. And if the price goes up, u cannot be sure there won't be trouble coming from the depletion of cash for construction. If the price falls, no one can be sure there's trouble coming either, until it actually becomes concrete.
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