If there is sharp economic downturn less cash is required for working capital as revenue will also decrease!

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4879769
-"The Company wishes to clarify that the cash balance of RM886.55 million is mainly reserved for working capital, and as explained in the announcement dated 25 September 2015, Xinquan requires sufficient cash buffer and a high level of working capital to ensure minimal disruption to its operations in the event of a liquidity crisis or a sharp economic downturn. The purpose of the Proposed Rights Issue with Warrants is to raise funds for Xinquan’s capital expenditure requirements whilst maintaining a healthy level of cash balances at all times" ... Is this acceptable by authority? What s shit reply!@$# The cash in hand is already sufficient to cover more than a year revenue!!!

No wonder the share dipped after the announcement of right issue which reflected the public confidence in their management

Shd request for independent audit on the financials before approving the right issue. Where is the need for further cash injection if the firm has RM886mil CASH. This amt is even higher than the year revenue which is illogical@#$%

why can't the co proposed share buy back instead of stupidly going for par value reduction. with the amt of cash in hand can always institute share buy back to enhance shareholder value! what the hack instead it proposed ESOS!!

Not all crashed ... XDL performed well today.... only good companies crashed. Xinquan & Msport

If that is the case, then they are not smart cheaters. Might as well play up the shares once declared good profit & dividend to cash out!

Seriously something is very wrong with this counter touching new low!!! Cheap or Cheat stock as compared to other China counters like Kstar & XDL. Both later firms financial figures were worse than Msport yet higher price.

Strangely all the controlling shareholders of China based listed firms in Bursa Malaysia were cashing out? No announcement of new major shareholders except change of directorship? Are we missing something?Look at XDL, Xinquan & Msport??

What's happening to all the listed China Shoe Making firms? Looks like all the controlling shareholders were cashing out??? XDL, Multi-sport, Xinquan??? How to instill investor confidence when they are cashing out? Strangely they didn't do it when prices were good but only on depressed price & worst when the firms had accumulated so much cash.Can SC investigate such awkward transactions? How come when they disposed under private placement no news of new major shareholders as transactions involved more than 5% of paid up capital?

Yes stupidity knows no limit in appointing M'sian politician rather than professional (like accountant) unless something is brewing without our knowledge .... no added value unless d politician able to assist in getting supply contract for Xinquan ....

Idiotic came up with non value enhancing reduction par value plan ..... AGM coming question the directors & do not let them off easily ...

Xinquan already on free fall for the past few trading days. If Xinquan is so profitable perhaps it's time for KYY together with a few shareholders accumulate the shares & kick out NG SIO PENG since she does not give investor confidence though Xinquan reporting profit with highest accm cash since its listing. Even XIE ZHIDONG who subscibed to the private placement was disappointed & sold off the shares. Perhaps should privatize & realize the CASH or use the cash to take over Msport to realize higher CASH. Xinquan share performance just defy logic as with weaker ringgit, earnings from Yuan conversion should be higher. After the appointment of UMNO politician as an independent director, the shares had been on downward trend, without a single day closed higher than precedent day.

Major shareholder sold another 7 mil warrant @ 10 sens @#% & change in Board .... raising suspicions again...KYY any comments?

Highly suspicious as buyers suddenly withdrawn?? RSI shown overbought position. Are they farming out the shares for syndicates to play? Disposed 20 mil warrants at such cheaper price?

AGM on Jun 22,2015 but I am unable to attend as will not be in town. What is happening to this firm with record cash hoard but not proposing any dividend for past few years. Pls question rational for not distributing dividend in AGM. Is it due to fictitious account? Don't let the management to give crap reason to conserve cash for working capital. Recently announced 1st qtr 2015 showed decreased revenue comparatively to 2014 1st qtr. Why is that borrowing only RM6.869 mil but interest cost RM109K. What is the purpose of having so much cash yet need to borrow? Cash in hand amounted to RM365.58 mil but interest income only RM304K? Also comparative figure against corresponding qtr wrongly indicated? Why is that NAP was RM6.159 mil against RM9.728 mil corresponding qtr but EPS shown as 1.19 sens against 1.11 sens ie higher EPS? How terms of RMB were 1.99 & 3.55 respectivly?? Feels like throwing the shoes on the management .. never know it will start to distribute dividend as Xinquan