Ang Henry asked 2 years ago
Hi Victor/ Rusmin,
I have checked the recent financial results for the above, and surprised that their operating cash flow is running negative of approx 11m RMB. If I’m not wrong this is the first time it happened. Is there a red flag(s) that I should look out for now?
Victor Chng answered 2 years ago
Hi Henry,
The negative may be due to their cash out flow for their working capital or delayed in receivables collection. It is too early to flag it as a red flag.
Ang Henry
replied 2 years ago Would you suggest to monitor the company updates and the subsequent financial performance and assess whether it’s a one off event or cause of concern then? Or any ideas which I might have missed out.
Victor Chng
replied 2 years ago Hi Henry,
I don;t think it is a big concern as for now. It is best to wait for their full year release to release and see that is the reason for negative cash flow.
Ang Henry
replied 2 years ago Hi Victor,
Thanks for sharing your insights, shall monitor their subsequent results and monitor first.
Victor Chng
replied 2 years ago Welcome Henry :)
Please login or Register to submit your answer