6 months back, I wrote about my interesting observation of Sino Grandness (SFIG). In the last few days, TTA a company which has loaned to SFIG made an announcement that SFIG has not paid back the loan amount of about RMB 140 million. This is despite the company having extended the maturity date of their loan once.
The link can be found here
In my opinion, given that SFIG has a cash balance of RMB$416million, it should not be possible for SFIG to miss the repayment of RMB$140 million.
Increasingly High Receivables and Dicey Cashflow
One thing that is increasingly worrying is how high the receivables are at. At current count, it is about RMB 1.5 billion, which is about 120 days of revenue. Furthermore, from the cashflow point of view, the receivables has always been increasing and never stopping. No doubt, the business could be expanding but I seriously doubt so.
Furthermore, in its last
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