China Stocks

[Rames]

CSHEF - here are my notes on this one, from back in mid March.

Looks like an investment holding that doesn't distribute consolidated profits of its subsidiaries. I own 20k shares, but I don't have any idea what the strategy of this company is. Waiting for the 2009 20-F since late March, so far no filing. It might be worth a whole lot more than what the stock price currently suggests, but then I guess it depends on if CSHEF ever plans to distribute some of those profits to us shareholders.

If I had a say in this, they could just liquidate and I take $7 to $8 a share, not a problem for me.

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http://www.sec.gov/Archives/edgar/data/908256/000095012311024945/c14039e6vk.htm

9,017,310 shares + $0.215
Dilution 2007-2009 0% (none)
Market cap: $1.9 million

Total assets: $132.4 million
Total liabilities: $29.1 million
Shareholders' equity: $103.3 million

Net income (2009): $36.2 million
EPS (2009): $4.01

As of December 31, 2008 and 2009, the Company also had a 26% equity interest in Hangzhou Zhongce Rubber Co., Limited. HZ and its consolidated subsidiaries are engaged in the manufacture of rubber tires in the PRC.

HZ results (2009):

Total revenue: $2.218 billion
Net income: $143.7 million
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2009 share (26%) $37.4 million

Total assets: $1.362 billion
Total liabilities: $0.954 billion
Shareholders' equity: $365.4 million
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26% interest $95.0 million

Equity Investments (Dec 31, 2009):

Securities listed in Singapore or Hong Kong
Fair Value $14.3 million


Investments in 50% or less owned companies over which the Company exercises significant influence but not control, are accounted for using the equity method. Under the equity method, the Company’s proportionate share of the affiliate’s net income or loss is included in the consolidated statement of operations.

Investment in equity method affiliates is accounted for under the equity method, under which the amount of the investment is recorded at cost, with adjustments to recognize the Group’s share of the earnings or losses of the unconsolidated subsidiaries from the date of acquisition. The amount recorded in income is adjusted to eliminate intercompany gains and losses, and to amortize, if appropriate, any difference between the Group’s cost and the underlying equity in net assets of the affiliate at the date of investment. The investment amount is also adjusted to reflect the Group’s share of changes in the equity method affiliates’ capital. Dividends received from the unconsolidated subsidiaries reduce the carrying amount of the investment.