Hong Yuan Holding Group (HGYN)

[Skyline2012]

ajh explain me this? if you can

We are already negotiating a several million pound compounding contract with a large plastic operator. We believe that in implementing this plan we will reduce the internal working capital requirement due to the decreased costs associated with purchasing raw material and preliminary analysis suggests that Cereplast Industries, if approved by the Bankruptcy Court, would reach profitability much faster than the current business model.

Why in the world they would buy several million pound compounding material and sign a contract?

Do they have something else in hand that we dont know what about?

This is what captures me.