I have spoken to the FLC's management and posed this question,...

I have spoken to the FLC's management and posed this question, how do they manage receivables risk in China? I was told, FLC collects 30% before they product leaves the factory gates, collect the second 30% as progress payments, collect the rest at the end of the receivables before the final order can leave the gate for delivery.

As SPS (namely, Aspiral) sales go up, cash flow quality will improve. Hence, I think I know why @jamesc666 is so concerned with Aspiral micro's penetration of the market space. The more MABR's they sell, the greater the data collected, the more it with give the market more comfort, the more positive the outlook and earnings upgrades. Hence, Henry's statement that the long term objective of migrating FLC towards 100% SPS. See post #: 47250448.