In July 18th, the co construction optoelectronic announcement said that in order to meet the daily business development needs of the company and provide funds for the development of the company's business, the company intends to borrow RMB 50 million yuan from individual or non bank financial institutions for a period of less than 3 months. It is understood that the annual interest rate of the loan is 10%, and the related taxes and fees involved are jointly borne by the construction company.
Actually, this is not the first external loan of the joint optoelectronics. In June 28th, the co - construction optoelectronic announced that it had borrowed RMB 40 million yuan from the natural person Wu Shaoyong for not more than 3 months, with the same annual interest rate of 10%.
Within 20 days, the construction of Optoelectronics has launched two foreign loans and the loan amount is as high as 90 million yuan. As a listed company with a total market capitalization of more than 4 billion yuan, frequent foreign borrowing inevitably leads to suspicion of investors' cash flow. In fact, the industry's concerns are also based on the first quarter report of the co - construction optoelectronics show that the net cash flow generated by the company's Q1 operation is -37625723.08 yuan. The embarrassment of "no money on the books" had to make frequent loans from the construction company.
The management of cash flow is an important function of the financial activities of modern enterprises. To establish a perfect management system of cash flow is an important guarantee for the survival and development of enterprises and the improvement of the competitiveness of the market. Cash flow is a very important index to judge whether a business is in good condition, whether it has sufficient cash to repay debts, and the liquidity of assets.
Financial circles have pointed out that cash flow is more effective than traditional profit indicators to explain the quality of the enterprise's profit. Therefore, the control and management of cash flow with the whole process of the enterprise becomes the core task of the enterprise's financial management.
For the LED industry, the breakup of capital chain is regarded as the main culprit in the end of the industry, which is also caused by insufficient control of cash flow. In 2017, Fortes, North Sen technology and other enterprises collapsed due to the broken capital chain. In fact, the closure of a business has repeatedly struck the industry.
The net cash flow generated by only 5 business activities in 2017 was negative, while in the first quarter of 2018, the figure reached 23, accounting for 53.49%. According to information, under normal circumstances, the net cash flow of operating activities > financial expenses + current depreciation + intangible assets deferred assets amortization + amortization of prepaid expenses. If the calculation result is negative, it shows that the company is in a loss during the current period, and the cash income from operation can not compensate for the related expenses.
Taking the highest negative Xiamen XinDa as an example, it can be seen from its consolidated cash flow statement that in the first quarter of 2018, the company received a total of 8411354612.88 yuan of cash received from sales of goods and services, the return of taxes and fees and other cash, as well as other cash, as compared with about 8% in the same period last year. The cash flow from the labor payment, the cash paid to the staff and workers, the cash paid for employees and the taxes and fees paid are 14582175646 yuan. As a result, the net cash flow generated by Xiamen XinDa in the first quarter was -5765408608.23 yuan.
On the back of 19 performance forecasts yesterday: the LED boom continued, the growth slowed obviously, the LED industry has been in the second half of the last half of the year, and the industry has been in the second half full of variables, the competition, the price fall, the price of raw materials and the Sino US trade war. The industry will face the risk of slower growth in performance. Therefore, in such a situation, enterprises should pay more attention to the safety of funds.
People in the industry say that because of the dramatic changes in the competitive environment, the industry may be ahead of time, and the enterprise will face the difficulties on the recovery of funds on the industrial chain. Therefore, the enterprise itself needs to do well in the prevention of the risk of capital safety, the management of cash flow, and the maintenance of the benign development of the enterprise.