AJX alexium international group limited

Ann: Shareholder Newsletter, page-57

  1. 1,795 Posts.
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    Keffola..I think the company is still pretty much in the start up mode....the business has yet to mature, and costs are yet to settle down, so initial costs to cover areas of R&D, marketing, staffing, setup costs at each of the new customer's factories, initial discounts, etc will be way higher than the margins recovered from sales in the short run, hence the inevitable cash crunch (which is normal IMO)..This will lead to cash shortage, and thus CR, specially given the rate of growth expected, and the number of customers to be given "a full body massage"
    Last edited by boc1986: 31/03/16
 
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