24 August, 2023

SUPPLIER FINANCING

Hiding debt and inflating cash flow

Mark Webb

mark-webb celltrion-inc china-shipbuilding byd-company-limited trip-dot-com conch-venture inner-mongolia-baotou-steel avichina-indus sichuan-road-bridge china-railway-signal-communication dongfeng-motor true-corp china-state-construction-int sinotruk shenzhen-inovance-technology tbea china-communications-construction crrc-corp contemporary-amperex-tech nari-technology gcl-poly-energy sany-heavy-equipment-international yadea-group eve-energy sungrow-power chongqing-changan-auto calb-group aecc-aviation-power avic-jonhon-optronictechnology china-three-gorges-renewables xinte-energy zhejiang-jinsheng-mechanical-electrical

Insights

1 December, 2023

NEWSLETTER: EVERGRANDE (3333 HK)

Never profitable

Fredrik Oeqvist

Evergrande’s much delayed and recently published 2021 annual report makes clear that it significantly overstated revenue and earnings – most likely for many years. Contrary to what some people think, Evergrande was not so much a victim of tightened liquidity or a COVID-induced property market downturn; its problems were far more fundamental – there were never any profits....

18 August, 2020

NEWSLETTER: COMING HOME?

Watch out for the privatisation “squeeze out”

The proposed Holding Foreign Companies Accountable Act could force hundreds of Chinese companies listed on US exchanges to delist over the next few years. For many large companies, seeking a secondary listing in Hong Kong or the mainland is a sensible insurance policy. However, investors should be wary of companies which decide to privatise and then relist. Our analysis of...