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e-Future Information Technology Inc. Message Board

  • sphincty1 sphincty1 Aug 22, 2013 6:47 PM Flag

    EFUT burned through half its cash 1H of 2013

    B/S shows they burned through about US$6.9M and have a balance of $6.4M. They used the money to pay bonuses and grow the business. Some of the uses of cash explained like higher inventories and lower A/P but it seems like they don't deserve bonuses and they appear to use the company as their own personal piggy bank. Also I don't like the loans to employees line on the balance sheet or all the intangibles and goodwill..

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    • $16,000.00 of advances to employees?
      Are you kidding? My business is much smaller in terms of revenue and my number is similar. I don't see that as a factor at all.

      I don't think you understand the company very well. They pay bonuses at the end of the year and that is reflected in their balance sheet quarter to quarter. They said in the conference call that after the 4th quarter of traditionally heavy collection on revenue, they will have about $14 million dollars. This is the nature of the company and how they motivate their employees as their wages have been slightly below market for a few years and they were trying to retain their base through company culture along with salary... and now they are learning that only salary+bonus keeps people loyal.

      My biggest concern is with Mr. Yan trying to spread himself out too thin in too many directions. Focus on the core business and forget about this mystore social shopping stuff. It may work out, but it is a total #$%$-shoot.

      Dave

      • 2 Replies to mmmparsley
      • Parsley good observations! I want to mention that omni channel retailing is becoming well entrenched here in the States. As China moves more from an export to a consumer driven economy and more from traditional markets to online retailing by way of their tremendous growth in mobile, eFuture is positioning itself to grow in this area with "Mystore". Now is it a crapshoot? It all depends on product uptake, effectiveness and execution. Getting the nod from Rainbow initially, demonstrates they are on the right path. If they are successful they will catapult themselves from a traditional provider of software services (their core business) to one of being at the leading edge of the mobile/retail revolution which is taking place in China. This could certainly set them up for growth and as a possible takeover candidate. In my opinion this is Adam Yan's strategy.

      • finally some pertinent and intelligent discourse. Hopefully we can stay away from the "this company is fake" short garbage.
        Thanks

 
EFUT
4.8312+0.0212(+0.44%)Aug 29 3:59 PMEDT

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