Focus Media: Roughly Follow Upwards To The Postal Service Most The Loan From Jiang Weiqiang To The Company

In the the second to concluding post I raised a disclosure nearly Focus Media needing a $2.5 i grand 1000 loan from the CEO's manful individual parent to "relieve a temporary shortage of Renminbi":

In March 2006, Weiqiang Jiang, the manful individual parent of Jason Nanchun Jiang (the CEO/controller of Focus Media), provided a short-term loan to the Group of around $2.5 i grand 1000 to preserve a temporary shortage of Renminbi the Group experienced at that time. The loan is unsecured together with was provided to us at no interest. The loan volition larn due together with payable inward total on June 30, 2006.

I wondered whether the Jiang Weiqiang was the civil retainer who worked for the State Council Information Office. Despite gossip from unremarkably good informed sources inward China I uncertainty the link. The argue (links later this post) is that the homo who is presumably the father-of-the-groom inward Jason Jiang's marriage photos does non resemble the regime official.

That said, I am far to a greater extent than interested inward content of the disclosure than the personage of the dad.

The companionship reveals that inward March 2006 it was facing a "Renminbi shortage".

This is a super-profitable companionship generating bang-up gobs of cash inward China (presumably bang-up gobs of Renminbi). It is surprising they had a "Renminbi shortage" even together with hence I went looking for 2006 accounts to run into if I could slice it together.

The March 2006 accounts

Here is the residuum canvass from the March 2006 results which demonstrate a salubrious cash residuum both at Dec 2005 together with inward March 2006 amongst no obvious expenditure that would motility a Renminbi shortage inward that period.

                         Focus Media Holding Limited                UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS                           (U.S. Dollars inward thousands)                                                         2006-3-31   2005-12-31                                                           US$          US$                                                       (unaudited)  (unaudited)      ASSETS      Current assets      Cash together with cash equivalents                          $41,863      $36,653      Investment inward available-for-sale securities         34,792       34,836      Accounts receivables, internet                           37,275       22,235      Inventories                                            605          480      Prepaid expenses together with other electrical flow assets            7,786       45,364      Amount due from related parties                      2,982        2,073      Total electrical flow assets                              $125,303     $141,641      Rental Deposits                                     13,245       11,819      Equipment, internet                                      70,993       43,695      Acquired intangible assets, internet                     30,881        1,158      Goodwill                                           406,791       13,298      Long term investments                                1,118           -      Other long term assets                                 221           -      Deferred revenue enhancement assets                                    193          743      Total assets                                      $648,745     $212,354       LIABILITIES AND SHAREHOLDERS' EQUITY      Current liabilities      Short term banking concern loans                               $1,247         $991      Short term other loans                               6,778           -      Accounts payable                                     8,280        5,848      Accrued expenses & other electrical flow liabilities        71,414       11,747      Amount due to related parties                        2,496           -      Income taxes payable                                 2,188        2,108      Total electrical flow liabilities                          $92,403      $20,694       Minority involvement                                      460          246       Shareholders' equity      Ordinary shares                                         25           xix      Additional paid inward uppercase                         530,088      177,420      Deferred compensation accuse                            -          (247)      Retained earnings                                   22,430       12,997      Accumulated other comprehensive income               3,339        1,225      Total shareholders' equity                        $555,882     $191,414      Total liabilities together with shareholders' equity        $648,745     $212,354 

Cash has gone from $36 i grand 1000 to $41 i grand 1000 over the quarter. There was an acquisition inward the quarter (Target Media) exactly they paid for that partly inward stock together with USD44 i grand 1000 inward cash together with the ease inward stock. USD44 i grand 1000 was less than the cash raised.

In other words at that spot is zippo inward the accounts that quarter that suggests a pressing Renminbi shortage inward March 2006.

I idea that at that spot mightiness locomote a Renminbi shortage because all of the inward a higher house cash was held inward USD. That would locomote odd - exactly it was at to the lowest degree theoretically possible, even together with hence the wedding photos for Jason Jiang together with his really pretty bride. The Father-of-the-Groom (presumably the homo on the far right) does non resemble the man inward photos of the senior Chinese officials. So I take away the proffer made to me past times several good connected Chinese sources that at that spot is a menage unit of measurement link to officialdom.