Why is the owner’s equity of Asia Star Bus negative?

The owner’s equity of Yaxing Bus is negative because it is in debt.

Asiastar Bus’s scheduled increase in 18 financial matters: continuous losses, high liabilities, and accounts receivable of nearly 2.6 billion

Asiastar Bus withdrew its 2020 proposal in February this year Fixed increase, but raised the issue again in March.

Yaxing Bus’s main business is the research and development, manufacturing and sales of bus products. The product range covers various types of buses from 5 to 18 meters, which are mainly used for highways, buses, tourism, groups, new energy buses and school buses, etc. market. The company's operations are mainly direct sales, supplemented by distribution, and provide standardized and customized products through an order model.

Continued losses and high debt ratio

The problem of continued losses has become the first financial-related issue in the feedback.

Feedback pointed out that Asiastar Bus has continued to suffer losses in the past year, and the difference between net profit and net cash flow from operating activities during the reporting period was large, and the amount and proportion of related-party transactions were large.

The plan shows that the combined losses attributable to the parent company in 2020 and January-June 2021 are 158 million yuan and 38.6275 million yuan respectively.