Analysts said the lack of cash Gome Huang Guangyu emphasized by the survey - Wong Kwong Yu, GOME Electrical Appliances - HC network appliance industry-hc360

China Product




U.S. "Wall Street Journal" reported that

GOME Electrical Appliances
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Chairman of the Board confirmed
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Huang Guangyu
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Alleged economic criminal cases are under police investigation Beijing, but stressed that the investigation does not involve the company. The CIMBResearch analyst KeithLi said

States United States

Electrical short of cash, Nomura International (NomuraInternational) expects the company's short-term liabilities about 940 to 3400 million yuan.



Chen Xiao, Gome has been appointed Chief Executive Officer of the company, Mr Deputy. Fang Wei, the company also appointed as acting chief financial officer, its chief financial officer Zhou Yafei is also being investigated.



Chen Xiao said in a statement, according to management's understanding of Gome Huang Guangyu individuals not associated with the investigation, authorities did not conduct this inquiry on the company's management.



From Xiao-founded by China Paradise Electronics Retail Ltd. (ChinaParadise ElectronicsRetailLtd.) Acquisition by Gome, Chen Xiao, Gome has served as the Chief Executive Officer.



Analysts say the company's announcement of the survey released recently by various news media widely reported, but not enough to placate investors. Gome is still suspended.



CIMBResearch analyst KeithLi said Gome lack of cash. Gome recently KeithLi will buy from outperform to underperform down.



Li by phone to Dow Jones Newswires (DowJonesNewswires) said that the face of the global credit crunch, investors need to know the company and its suppliers and creditors, if there are any changes to sign the agreement; but the announcement did not address this uncertainty factor.



Analysts expected, as at the end of October, GOME has a cash balance of approximately four billion yuan, while Nomura International (NomuraInternational) expects the company's short-term liabilities about 940 to 3400 million yuan.



Analysts say, Gome is also likely in time for the May 2010 redemption in advance of the redemption of its 4.6 billion yuan in convertible bonds, because the per share conversion price of 4.99 Hong Kong dollars higher than its current stock.



Citigroup (Citigroup) last Wednesday to Gome to buy from buy and cut its target for the sell price from 1.19 down to 0.60 HK dollar to reflect the uncertainty faced by the company.



Gome before the suspension in last Monday's offer of 1.12 Hong Kong dollars, has fallen 77% this year.



Another analyst who declined to be named, said that Gome's business appear to be normal, but their attempts to obtain new bank loans may face difficulties.



Gome said in the statement, Beijing Public Security Bureau has verbally notified the company, Huang Guangyu alleged economic criminal cases under investigation. Notice did not elaborate, but Gome executives declined to comment further.



Gome, the company that the chief financial officer Zhou Yafei also under investigation, it has been appointed as Acting Chief Financial Officer Fang Wei, chief financial officer.



Gome, a spokeswoman said the survey did not know who the two companies are in the custody of management.



Gome said the company's management after the initial internal review, the current assets of the group and found no funds had been misappropriated or occupier of the situation.



But Gome said it is prudent, the company will hire an independent accounting firm to conduct risk assessment on the GOME and related party transactions and the effectiveness of internal control systems are reviewed.