Foreland Fabrictech

[freedom]

2q2012 would be an interesting period. Its dividend in 2010 and interim dividend was funded by its placement rather than dividend from its china subsidiaries. Using its company balance sheet end 31 Mar,2012, there wasn't enough money to fund its final dividend in 2011. And all these years dividend from subsidiaries has been accruing to more than rmb 51 mil, if I am not wrong. To fund its final dividend in 2011 and declaring an interim dividend, dividend accured from subsidiaries should be settled, otherwise the company need to find money for its dividend.

bb88 did say in his last post the CFO is not very sharp haha. Seriously, in their 2011 report they have Rmb228m cash and no borrowings so why can't they pay the div.? Some S-chips have hundreds of million Rmb cash but has high borrowings " to maintain bank relationship etc" which makes me laugh.

Well, the CEO said 1Q will be ok in the 2011AR and now said 2Q will be ok too. Will take his word for it.

I don't think you got my point. 2Q is interesting because it could be a sign whether their cash is real or not and how much of its cash is real.

Duh !!! The 1Q report has even higher cash Rmb273m and still no bank borrowing. If you don't trust Q1 report , why do you trust Q2 report?

please learn some accounting knowledge before coming back. otherwise, you will never get what I am saying.