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1st Conquest

1st Conquest

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This is not the impression I got at all. The steel industry over in china is tanking due to there being massive amounts of surplus, and whatever other issues will magnify the problem of not being able to move inventory. I also saw they had a 600k is unfavorable cash flow - which includes cash and cash equivalents and non cash items are removed (aka the cash flows is your 'liquid' from operarions, investments and financing). The surplus iron ore is a result of the steel industry buying foreign ore instead of domestic ore. But that surplus can still be sold off to other countries, such as India. It might just take a bit longer to get rid of the surplus.

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As far as switching industries, as you appearently appear to be suggesting, although it isn't unheard of, I would highly doubt that is the mining company's intent. I am curious why you would think this though. Up until a few years ago, the company was known as the Shandong Hongda Technology Co., and dealt mainly in chemicals. For whatever reason, they took the company a different direction. This might be another one of those moments where they are looking to switch industries. Or they might just be purchasing the company as a cash flow.

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And I hate to get into the mechanics, but revenue alone isn't enough to cover current liabilities. Remember revenue is made up of accounts receivable as well, and depending on their terms, the company may not see the actual cash for awhile. We don't know what their current liabilities or revenue is, as the 2015 reports are not out yet. They will be submitted on March 26th.

Shandong Hongda Technology Co, wait this is an actual Asian name? It legitimally sounds offensive, But if you sell 100% of your shares you sell all the rights and everything so who knows what might happen. I've gone from an activity player to an inactive player.

17-Mar-2016 19:13:38

BellaMorte

BellaMorte

Posts: 167 Iron Posts by user Forum Profile RuneMetrics Profile
Jagex's acquisition by the Chinese people may be a good thing. I feel you guys havent really thought this through. So what happens if they(The Chinese) think that you guys dont make enough profit for them and the board of directors voted to close Jagex down. What will happen then? BellaMorte [gold] Scourge of the Wild [/gold] of [lightblue]Calamity PK

17-Mar-2016 19:23:23

kellorz
May Member 2022

kellorz

Posts: 3,951 Adamant Posts by user Forum Profile RuneMetrics Profile
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Jagex's acquisition by the Chinese people may be a good thing. I feel you guys havent really thought this through. So what happens if they(The Chinese) think that you guys dont make enough profit for them and the board of directors voted to close Jagex down. What will happen then?

Paying $300m for a company I doubt they would just simply close it, I'd think they would sell it on, maybe take a loss but $300m is alot to simple write off.

17-Mar-2016 19:29:02

Darth Exar

Darth Exar

Posts: 163 Iron Posts by user Forum Profile RuneMetrics Profile
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Jagex's acquisition by the Chinese people may be a good thing. I feel you guys havent really thought this through. So what happens if they(The Chinese) think that you guys dont make enough profit for them and the board of directors voted to close Jagex down. What will happen then?
So you think they will close a company after paying 300m USD, just like that?

IF they decide that Jagex is not making enough money, they will make use of the resources they purchased in form of Jagex for things they think are more profitable instead of throwing their investment away by outright closing it.

I think they have made their intent clear already. They want to enter a new industry for business and Jagex is their answer. If they decide that the profit margins are not good enough, you can expect more MTX in Runescape, most probably in OSRS which is MTX free at the moment. OR they can decide that Jagex is to have only one flavour of Runescape, thinking that the whole Runescape franchise is not good enough, and move people working on other projects to some new game which is similar to the kind that are more popular in Asia - something like a Starcraft type RTS or a League type MOBA or some cellphone game with in-game purchases.

Either way, it is not likely that Jagex will disappear in a blink of an eye if something goes wrong, not that I expect things to go that wrong.

17-Mar-2016 19:32:26 - Last edited on 17-Mar-2016 19:36:01 by Darth Exar

Stellarflare

Stellarflare

Posts: 244 Silver Posts by user Forum Profile RuneMetrics Profile
It really doesn't matter what kind of company takes over Jagex, the same risks exist regardless. Video game "experts" like EA have taken over many a company with the best of intentions and wrecked them or gutted them when their objectives failed, wanting to retain control of key assets even if they no longer want to support any of the games formely produced by those companies.

People had a lot of concerns about the future of Jagex when IVP took a controlling interest in Jagex. How much influence they had over the shift to MTX and EoC can only be a matter of speculation, but generally speaking they've managed to keep RuneScape running and financially healthy. They may well have been the force influencing the growth of MTX, whihc has been a financial success for Jagex if not a popular one, but I very much doubt they had any significant influence over all the other game ventures that Jagex have made in the last 7 years which have largely failed. Jagex not having anyone larger holding their purse strings would be no guarantee of a bright future either.

All we can do is wait and see. Hopefully it won't be a problem, but nobody is in a position to offer any guarantees.

17-Mar-2016 19:59:18

Darth Exar

Darth Exar

Posts: 163 Iron Posts by user Forum Profile RuneMetrics Profile
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It really doesn't matter what kind of company takes over Jagex, the same risks exist regardless. Video game "experts" like EA have taken over many a company with the best of intentions and wrecked them or gutted them when their objectives failed, wanting to retain control of key assets even if they no longer want to support any of the games formely produced by those companies.

People had a lot of concerns about the future of Jagex when IVP took a controlling interest in Jagex. How much influence they had over the shift to MTX and EoC can only be a matter of speculation, but generally speaking they've managed to keep RuneScape running and financially healthy. They may well have been the force influencing the growth of MTX, whihc has been a financial success for Jagex if not a popular one, but I very much doubt they had any significant influence over all the other game ventures that Jagex have made in the last 7 years which have largely failed. Jagex not having anyone larger holding their purse strings would be no guarantee of a bright future either.

All we can do is wait and see. Hopefully it won't be a problem, but nobody is in a position to offer any guarantees.

Except if you are going to compare IVP and Shandong HongDa, then the difference is: IVP was a profitable organization with multiple sources of revenue having experience working in the same domain as Jagex, and it allowed Jagex enough leeway to remain pressure free to some extent while understanding the market situation as an investor. But then again, it is IVP that's selling Jagex so, we can't really say that IVP had no pressure at all on Jagex for continuously increasing profits. Whereas Shandong HongDa is labelled as lossmaking, assuming their past history, they probably have a smaller threshold for tolerating losses or low profit turnovers, and do not understand the market. Maybe part of deal could be that they trust Jagex's suggestions.

17-Mar-2016 20:08:36

Etsa
Jan Member 2009

Etsa

Posts: 3,958 Adamant Posts by user Forum Profile RuneMetrics Profile
Last time I checked the community DID vote for the Eastern Lands to be part of RuneScape.

So it's Eastern Lands we get.

Power to the Players, gotta admit not what I was expected when I voted for it.

17-Mar-2016 20:21:15 - Last edited on 17-Mar-2016 20:21:40 by Etsa

Darth Exar

Darth Exar

Posts: 163 Iron Posts by user Forum Profile RuneMetrics Profile
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Last time I checked the community DID vote for the Eastern Lands to be part of RuneScape.

So it's Eastern Lands we get.

Power to the Players, gotta admit not what I was expected when I voted for it.

As far as puns go, yeah:

1- Eastern Lands.
2- Mining Update.
3- Runefest outside London.

Jagex delivers all in one package. :P

17-Mar-2016 20:27:01

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