It's good to have a wealthy Executive Chairman and controlling shareholder.
Mr Xu Jian has agreed to provide a loan of up to RMB100,000,000 to the Company to meet the capital expenditure and working capital requirements of the Company and/or its subsidiaries. Pursuant to the terms of the Loan Agreement, the Company may drawdown the Loan in tranches of at least RMB10,000,000 from the date of the Loan Agreement until 30th June 2013.
The Loan is interest free and repayable at such time and date as determined at the sole and
absolute discretion of the Company.
Certainly the business potential is there for REA but the cash-flow is a challenge currently. It depends on yr risk appetite as an investor. This stock may b too 'exciting' / risky for some investors ( who prefer more stable businesses )
There are actually many comparables for REA in Hong Kong. China Longyuen is the largest player in the wind farm sector.
If you read their reports, you can find that even the largest player has acknowledged that this is a long winter. The earliest date of sector recovery is probably 2Q 2013.
Hence REA must have enough money to last this winter.
I am studying some solar companies at the moment. Always asking myself if these companies can survive this long industry consolidation.
This is the time for you to study the industry and the businesses. Not the right time to buy yet.
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