XMH Holdings

XMH Holdings: 3Q13 results released, revenues up 35% y/y to $19.3m, earnings down 40.3% y/y to $2.15m. Company was hurt by Distribution expenses, increasing 57% to $1.1m due to an increase in payroll, and marketing & promotion expenses. Going forward, the improving economic outlook and continuous increase in commodities production volume should spur stronger demand for inland waterways transport vessels which will translate to more opportunities for the Group. In February 2013, Group announced its intention to acquire land to construct new premises to accommodate new assembly and production lines and increase general warehousing capacities. The capital expenditure for the new facility is estimated at $68.4m over the next 3 years and the Group intends to finance it via IPO proceeds, internal cash and bank borrowings.