Billion Qualcomm High division: Operating cash flow tight high inventory risk

Jiangsu Yitong High-Tech Co., Ltd. (hereinafter referred to as "billion Tong Gao Ke") 18th successful meeting. The prospectus shows that in the reporting period (2007, 2008, 2009 and 2010 1-September), the net profit of the department was 1248, 750,000, 1682, 230,000, 26.4057 million and 22.1518 million yuan respectively.　　But behind the gradual rise in profits is the fact that the company's cash flow is tightening. The data show that during the reporting period, the net cash flow generated by the management activities of Yili high-tech branch was 20.8407 million yuan, 15.7233 million yuan, 15.0805 million yuan and 942,500 yuan respectively, which was almost exhausted, and 2008, 2009 and 2010 1-September The net operating cash flow is lower than the net profit achieved in the current period.　　In addition, as at the end of September 2010, the net cash flow from the company's investments was 1821.420,000, with a net decrease of 6.5222 million yuan in cash and cash equivalents in the current period.　　In the cash flow statement, excluding the exchange rate changes that can be ignored, only fund-raising activities generate a net cash flow of 1261.830,000 Yuan.　　One analyst said that, from the cash flow statement, once future financing activities are blocked, the company's operating capital is under greater pressure, behind the tight cash flow of the billion-high division is the reality of its accounts receivable and inventory balance has risen sharply. Disclosure of materials shows that the end of 2007, the end of 2008, the end of 2009 and the end of September 2010, the company's accounts receivable balance of 4422.250,000, 4607 320,000 yuan, 84.8004 million yuan and 75.2972 million yuan, accounting for the year's sales income ratio of 32.88%　　, 25.87%, 42.83% and 56.39%, of which the end of 2009 grew by 84.06% from the end of 2008. At the same time, the balance sheet shows that during the reporting period, the inventory of the High division is 25.2351 million yuan, 39.0587 million yuan, 18.9225 million yuan and 62.83 million yuan respectively.　　From 2009 to 2010 the end of September, the company's inventory balance grew rapidly, by as much as 232%. According to the prospectus, the raw materials and inventory goods in the inventory increased by 19.0795 million yuan and 1887.420,000 Yuan respectively, "the growth of the company's inventory balance is closely related to the adjustment of the company's product structure", "the company in order to adapt to EOC and other products sales of rapid growth, corresponding increase in inventory　　Lead to imports of raw materials accounted for 74.76% of the final balance of raw materials. In fact, the balance sheet and cash flow statement showed that, as at September 30, 2010, the company's current and illiquid liabilities amounted to $119.0935 million and 7.1987 million, respectively, and the total liabilities amounted to $126.2922 million, while the balance of cash and cash equivalents at the end of the period was 2422.Million Yuan.　　The instructions show that from July 5, 2010 to September 15, 2010 Within two months, the Department of the High branch to Jiangsu Changshu Rural Commercial Bank, Shanghai Pudong Development Bank, Ningbo Bank, Citic Bank and China Minsheng Bank loans, 10 loans total accumulated up to 46.78 million yuan.　　Industry insiders said that the current national radio and television Network is integrated, the future may have a significant impact on the production of radio and television equipment manufacturers, and billion Qualcomm high in the highly dependent on bank loans and accounts receivable substantial growth of the conditions to maintain high inventory, the risk is self-evident. Reporter 18th call billion Qualcomm High Branch, the company on duty to the relevant responsible persons are on business trip, did not accept the interview request.