Long-source shares will be too dependent on a single foreign client

Li Yu following Hepalink (002399.SZ) and Hirota decoration (002482.SZ) are alleged to be overly dependent on single customers and cash flow problems, the current review of the Lang-yuan shares seems to have the same problem. Long source share prospectus shows that the company's two major customers in the first half of 2010 sales revenue accounted for the proportion of business income of 47.38%, 2009 the proportion of 28%; In addition, Lang Source shares operating activities cash flow is "see red", as of the first half of this year, the company short-term borrowings accounted for the total assets　　The company's export sales accounted for nearly 90% of total income.　　Long-source shares plan to issue 27 million shares, the total share capital after the issuance of 107 million shares, planned to be listed on the Gem, the company's main business for the fruit and dried fruit plant management, processing, warehousing and sales, the main products for fresh apples and raisins. Over-reliance on foreign clients long-source share prospectus shows that the company's sales revenue are mainly from BEDE TRADING & Agency and Deway MANI Utana (hereinafter "BEDE" and "Deway") two foreign clients,　　In the first half of 2010 the company's sales were 41.13 million yuan and 40.82 million yuan respectively, accounting for 23.78% and 23.6% of operating income respectively.　　In 2009, however, both sales were 40.23 million and 44.95 million respectively, representing 13.22% and 14.78% per cent of operating income, compared with 13.07% and 13.48% in 2008.　　Bede from the Netherlands, is one of the major European import agents of dried fruit, the main agent raisins, apricots, sunflower seeds, white melon seed, etc. deway is one of the largest importers of fresh fruit in Indonesia, mainly engaged in apples, pears, grapes, citrus and so on. Operating in the first half of the cash flow-2.47 million yuan in the first half of 2010, long-source shares operating activities generated by the net cash flow of 2.47 million yuan, and the 2009 year the number of 45.86 million yuan.　　The company explained that the amount of accounts payable reduced by cash during the period was 53.1948 million yuan, thus increasing the "cash to buy goods and services paid"; The balance sheet showed that accounts payable were reduced from 74.53 million yuan at the end of 2009 to 22.34 million in 2010.　　The company also explained that the business procurement of the seasonal, determines the level of the company's asset-liability ratio also presents seasonal characteristics, the general year-end asset-liability ratio is higher; in the interim, with the gradual payment of purchasing funds, the ratio of assets and liabilities decreases correspondingly. The company also relies on short-term financing, short-term loans in the end of June amounted to 125 million yuan, accounting for 38.12% of the total assets, inventory also more than 100 million yuan; if the company can not be scheduled to collect sales money in the future, resulting in a decline in short-term solvency, the company will face the risk of failure to repay loans　　And the high level of inventory will also have a certain unsalable risk. In addition, the company's first-half export sales revenue of 152 million yuan, accounting for the same time the main businessRevenue of 88.76%, is a typical export-oriented enterprises, and the recent appreciation of the renminbi has also made people worried about the company's performance. In this respect, the company said, in the contract with foreign customers to sign product sales, the general agreement on the renminbi against the United States dollar appreciation to reach or exceed a certain proportion, will renegotiate the price of sales, exchange rate fluctuations will directly affect the product sales price and competitiveness, bring certain risks.