PET 0.00% 2.5¢ phoslock environmental technologies limited

There are some valid concerns regarding doing business in China...

  1. 93 Posts.
    lightbulb Created with Sketch. 20
    There are some valid concerns regarding doing business in China through a keyman (ZZL) as well as how the company has been disclosing the financials of some big contracts.

    But I don't understand some of the concerns discussed here by some. The $10m cash receipt in Q1 2019 includes $7m sales booked in 2018, due to Chinese cash end-of-the-year cash preserving practice, which was communicated by the company at the time. So taking out the $7m, the cash receipt from Q1 to Q3 2019 is around $15m, which pretty much matches the revenue during the period.
    So what is fishy about this and what is all the fuss about their payment terms?
 
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