http://www.sinchew-i.com/node/52444?tid=1, will this serve as a stimuli to the steel counter ?

Good day

No. Sino Hua-An is not going into PN17. We are financially sound company with cash in hand of more than RMB 120 million as at 31 Aug 08. Thr share price drop is very much in line with steel sector in Malaysia, China & worldwide (steel sector). The share price dropped of Sino Hua-An lately was main due to foreign shareholding selling (from a high of more than 20% in shareholding to about 10% shareholding) & also margin call for high networth individual. In fact, other company share price dropped recently were also because of margin call.

The current steel industry in China (and also international steel industry)
has slowed down since July 2008. Mittal group has recently accounced to cut
down steel production by 15%. 4 large steel in northern China have announced
to cut down steel production by 20% (approximately 100 million tons).
Malaysia steel manufacturers (listed co) are currently running capacity of
approximately 50% and according to steel analysts, some are runnning at 33%
only.

The demand of steel has dropped after Beijing Olympic and also because of
Bulan Puasa in Middle East countries coupled with hot summers months from
June to Sept 2008 have resulted huge drop in steel demand from China and
Arab countries. Of course the recent financial tsunami (Lehman Brothers
filing chapter 11 bankcrupcy, AIG in financial crisis, Merrill Lynn taken
over by Bank of America...) have caused tremendous shock to investors
worldwide and panicked their confidence level.

The equtiy market is facing meltdown situation whereby the worldwide stock
exchange have lost billion of USD within these couple of months. Eventhough
fundamentally sound companies' share price are also negatively affected.
Even Genting & Resorts dropped more than 35% YTD. Sime Darby, IOI dropped
more than 50%, Kinsteel , Masteel and Perwaja (IPO less than 2 months, from
RM 2.90 to RM0.90) dropped more than 60%.

Bursa share price also dropped 60% YTD. Our KLCI Jan 2 2008 was 1435
points, now about 850 points ie dropped more than 40%.

Baoshan Iron & Steel (largest steel manufacturer in China) and China Shenhua
(one of largest coal mines in China) share price also dropped more than 70%
from its peak on Jan 2008 & October 2007 respectively.

Sino Hua-An's coke business is very dependent on China steel industry as we
sell all of our products to China domestic market. According to local steel
industry players, the international steel industry would likely rebound
positivrly in the 1Q09 or 1H09, in tandem with other commodity prices. Steel
is a necessity in any developing countries like China, should there be any
rebound, we strongly believe, steel industry would be the first few
industries to improve significantly. Therefore, we are very much in line
with the performance of China steel players there. Eg during the good year
like 2006 & 2007, we also enjoyed good GP margin of 20%.

As a summary, overall global equity market are badly performed currently.
Most unit trust funds in HK and Japan, their YTD lost are more than 30%. SGX
is also badly hit, from high of 3600 pts, now at 1900 pts. Shanghai from
high of 6000 pts to current 2000 pts. During the good time, equity market
provides the best returns but when market sentiments are bad (like US
subprime credit crisis & drag to EU & Asia), the loss are also very huge.

Sino Hua-An's management will do the best to run the business effectively
and efficiently. Sino Hua-An has no external bank borrowing and is a net
cash company since Oct 2007.

Thank you for your concern & best regards.

Best regards,
Bernard Tan

I oredi bought 100lots this afternoon at 0.19. planning to sell tomorrow :-p

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Added on October 29, 2008, 8:03 amI bet huaan will hit 0.24 today , i m going to offload my huaan today

This post has been edited by alivecmh: Oct 29 2008, 08:03 AM

congrat to thsoe who bought at 0.235 !! huaan flying into the sky now. But i doubt it will go up too much.

Djia surge above 8000, huaan gonna shoot up another 0.03 cents !!!

Yup, it seldom fail, whenever klci rally, it probably surge 10% judge on its past performance, I'm still holding 200,000 units of huaan . But i dont wanna sell it so early, target price is RM0.40 above.

If huaan ever dip to 0.20 again, i will consider to buy another 200,000 lots to average down. then just put it aside wait for it to rebound.

oops, sorry. I mean 200,000 units of huaan. I don't have 5 million now, maybe few years later

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Added on November 25, 2008, 7:44 amhuaan GO GO GO.. !! today is the time to shoot up at least 20%

This post has been edited by alivecmh: Nov 25 2008, 07:44 AM