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Re: The Swede post# 10525

Monday, 04/30/2012 1:25:10 AM

Monday, April 30, 2012 1:25:10 AM

Post# of 163718
It depends on how much cash they have and how badly they want it.

This is from some other company. Here are some limiting factors.

"The Company Law of the PRC applicable to Chinese companies with foreign ownership provides that net income can be distributed as dividends only after:

a. Cumulative prior years’ losses have been recouped;
b. 10% of after tax income has been allocated to a statutory surplus reserve until the reserve amounts to 50% of the company’s registered capital;
c. 10% of after tax income has been allocated to a statutory common welfare fund, which is established for the purpose of providing employee facilities and other collective benefits to the company’s employees; and
d. Allocations have been made to the discretionary surplus reserve, if such a reserve is approved at the meeting of the equity owners."

"The Chinese Yuan (Renminbi) is not freely convertible into Dollars. The State Administration of Foreign Exchange (“SAFE”) administers foreign exchange dealings and requires that they be conducted though designated financial institutions."

"In addition, upon repatriation of earnings of our Chinese subsidiaries to the United States, those earnings may become subject to United States federal and state income taxes. We have not accrued any U.S. federal or state tax liability on the undistributed earnings of our foreign subsidiaries because those funds are intended to be indefinitely reinvested in our international operations. Accordingly, taxes imposed upon repatriation of those earnings to the U.S. may reduce the net worth of the Company."

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