China Growth Stocks

[BiotechValues]

CHIO

"On October 15, 2009, the Company amended an agreement for the purchase of electronic products for the promotion of the insurance agency business amounting to $16,818,767 (RMB115,000,000). For the period ended September 30, 2009, the Company made a 96% prepayment for the products of $16,072,891 (RMB109,900,000). The electronic products will be sold together with the Company’s insurance package and will be inventoried upon receipt and charged to cost of goods sold upon sale."


So that's about .42/share in electronics equipment that they've already paid for to help grow sales.

I'm just not seeing how this is a negative thing...although it's very possible that I'm missing something.