don't touch xinren. Capex is more than cash from operating activities. Total liabilities more than current assets. It will be burdened with more and more debts
XinRen's plants are in Hubei --- which is diff from Henan, China's top aluminum-producing province. XinRen stock is at 30 cents currently.
Reuters report said the province has idled about 700,000 metric tons of capacity in recent months. Quoted a senior industry official saying, further evidence that slower growth in the world's No. 2 economy is denting the country's appetite for commodities.
The total reduction could rise to 1.2 million metric tons by the end of the year, Henan Nonferrous Metals Industry Association deputy chairman Liu Libin said, more than a quarter of the province's total capacity.
Aluminum prices have joined a general slump for commodities, with London Metal Exchange metal
down 15 percent from the year high hit in early March.
"Smelters that are still producing in Henan are big ones," Liu told Reuters. "They are still able to maintain normal cash flows and are hoping the market will improve soon," he said, adding that local governments will support smelters as they want to maintain tax contributions and employment.
China is the world's largest producer of aluminum - used in the building, transport and packaging sectors - with a production capacity of more than 23 million metric tons a year.
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