Financials will NOT look Good!
The GAAP audit will uncover many things that will cause lots of disapointment. The SEC Registration will reveal a few other things.
First off - Cavico spun off 2 subsidaries in late 2006: Cavico Mining and Vinaico. Revenue can not be include in this year's reports though the Asset Value should reflect the 50% holding of Cavico Mining and 17% of Vinaico. Further, the reported 3000 (or is it 3500) employees reported to be in Caviaco will be significantly reduced.
It is somewhat confusing what all the company really does now. The Cavico Mining company does mining, road and hydropower construction. Vinavico does hydropower - not sure how both of these can be doing hydropower.
Those 2 companies should be listed as 'strategic partners' now and now as operating companies.
The spin off of these subsidaries and possibly some more in the future means that Cavico itself his head towards being a Holding Company.
Look at the list of operating companies on this page (which was lifted from one of Cavico's web pages at one time) and see what is left - Bridges & Tunnels, power, energy, buildings, transportation, (equipment) trading, and web design (Cavico Hitech). Then there are some services that they provide.
Could it be that they have maintained a core of the 700 engineers to do the actual design for Mining and Vinavico?
I hope this mess of things can get cleared up when the Registeration is done. It won't be by the audit since their focus will be on the numbers and not so much what the company itself really does now.
AI
