Some interesting DD I picked up from another board:
Looks like Chinese Government itself has 40% stake in Xinhua C & D. This might get interesting now...
SEC Info - Xinhua China Ltd - 8-K - For 1/21/05 - EX-99.1
Xinhua C & D is the operating entity that had been the distribution arm of the
Chinese government's Xinhua Bookstores. It holds the only nationwide wholesale
distribution license in China. This Beijing based wholesale book business that
distributes to Chinese retailers has now been spun-out and privatized. Xinhua
China has acquired a 57.67 percent interest. The new operating subsidiary will
begin operations effective February 1, 2005 with registered capital of RMB(Y)300
million, or approximately US$ 36.2 million. The Chinese government has estimated
2004 distribution revenues at about $US100 million, with pretax income of more
than $US 7 million.
The Chinese Government is a strategic partner retaining a 40 percent interest in
Xinhua C & D through its Xinhua Bookstore Head Office. Xinhua China expects this
strong relationship will help to expedite approvals required to import foreign
publications that meet with Chinese government content approval for distribution
in China. The remaining ownership interest of China C & D is held by seven
domestic Chinese publishing companies including the People's Publishing House.