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The eBearing News
November 23, 2005
Xiangyang Reports Second Quarter 2005 Results
copyright © 2005 eBearing Inc.
Xiangyang Automobile Bearing Co. Ltd. (Hubei Province, China; Shenzhen:
000678)
reported fiscal second quarter and first half 2005 sales and earnings.
While sales results were unclear, Xiangyang remains one of China's largest bearing
manufacturers. Earnings reportedly came in at Yuan 11 million, up from
10.9 million yuan for all of 2004.
The company manufactures bearings under the ZXY brand:
constant velocity joints, deep groove ball bearings, needle roller bearings,
cylindrical roller bearings, angular contact ball bearings, wheel hub and bearing assemblies,
clutch release bearings, thrust ball bearings, air conditioner compressor bearings.
Xiangyang, founded in 1968 as Xiangyang Bearing Factory, became a joint stock traded
company in 1993 and listed on the Shenzhen in 1997.
Like many state-run enterprises, Xiangyang was poorly run and ran up massive unreported losses.
As financial reporting became more clear, Xiangyang was ejected from the Shenzhen exchange for
its it problems and mismanagement. For example, from at least 2000 through 2003, the company collected
government-mandated dues, fees, taxes, housing allowances and other payments from its workers, but
kept the funds rather than passing them on to the government.
Xiangyang began to see a privatization push in 2003, and employment was eventually cut from
over 10,000 to under 2,000.
On November 18-19, 2003, over 10,000 workers from Xiangyang blocked streets and railroads
in and around Xiangfan, demanding that the local governor protect the workers rights
during privatization. The local municipal secretary offered laid-off workers
915 yuan for each year worked, up from 914 yuan compensation, in addition to selling
them their company-owned apartments for the equivalent of 25 years' severance.
In August 2004, a Jiangsu-based arm of giant investment firm Greencool acquired 42 million shares, or 30%, of
Xiangyang, in a move approved by the State-owned Assets Supervision and Administration Commission.
Greencool paid 2.41 Yuan (approximately USD $0.25) per share.
Since then, however, Greencool and its executives have been embroiled in controversy.
Greencool executives have been resigning amid charges of widespread corruption, massive earnings manipulation,
loss coverups, money laundering, stock exchange manipulation and executive embezzlement on an
international scale.
Greencool's investment and equity operations continue to exist, but operate under a cloud.
Xiangyang management said the company is trying to move beyond its past and the downside of its
Greencool relationship, to build market share and improve competitiveness in export markets.
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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