Motley Fools article is wrong1 May 2015 11:22
from iii
The share price tanked after the Motley Fools article but are they correct on the bank interest
being negative, implying that they did not have much cash at all.
Have you read the accounts or just relied on the Fools.
Take a look.
They stated that the company had a negative interest income but that is NOT correct.
The interest income was 4,578,000 RMB
What they have misread in the accounts is the section on cashflow.
UNDER CASHFLOW FROM OPERATIONS
interest from operations is shown as a negative figure as what is shown is total cash LESS items not relevant to the operating part of the business i.e. depreciation, loss on disposal and bank interest. This shows actual profits from operations ONLY.
BANK INTEREST IS SHOWN SEPERATELY
under
CASHFLOW USED IN/ FROM INVESTING ACTIVITIES
interest income is shown as 4,578,000 RMB
So they HAVE earnt interest on a PILE OF CASH in the bank.
Motley Fools have caused the panic selling and need to apologise.
Please look yourselves and correct me if I am wrong.
They do have a pile of cash in the bank!