What James is true and what Azza said also is true. Such is life -- all of us can be right.
Whether China Fibretech can be a profitable investment is yet to be seen. But now, it looks like it's attracting attention with a rising volume and a stock price of 5 cents. The upcoming full year result can either propel it higher or kill the stock.
The unaudited financial results of the Group for the 4Q2011 is expected to report materially lower
revenue and a loss before taxation as compared to 4Q2010. The lower revenue was due mainly to
the decrease in demand for our fabric processing services by our customers. This slowdown in
demand started in May 2011 (as per our commentary in note 10 in our Second Quarter and Half Year Financial Statements and Dividend Announcement for the period ended 30 June 2011) and further deepened during 3Q2011/4Q2011 as compared to previous quarters.
There was also an increase in provision for staff related costs. The higher staff related costs relates to additional provision for housing fund and social security contributions required by the national labour laws and regulations.
In addition, the Group also provided an impairment expense of RMB8.9 million for past construction in- progress.
What a disastrous 2H they had!
How can business dive so sharply? This must be a highly competitive industry -- too many players and too low barriers to entry. And on the demand side, are they also affected by Europe recession?
The cash pile is the bright side to this counter. 20 SG cents of cash as they have hardly any bank borrowing. Stock price is 4.5 cents, how can??? The whole thing doesn't make sense. Neither does the absence of dividends. Just 1 cent alone won't make a dent on their cashpile but it will boost investor confidence and the stock price/. Hello, Fibretech, who are you really?
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