20th Jun 2014 11:13
LONDON (Alliance News) - Gowin New Energy Group Ltd Friday said its working capital remains constrained because it is still experiencing delays in recovering debts, but it thinks the issue is temporary and remains optimistic about the prospects for the current year.
The company had warned last month that it had been hit by delays in recovering debts in China due to the significant growth in the LED lighting sector in China since the start of this year. It faced payment delays from customers in China, including government contractors.
In its statement Friday, Gowin reiterated that a number of the debtors are related to government building projects and there have been significant delays in contractors receiving payment for such projects from the government, which has in turn led to delays in the company receiving payments as they fall due.
Gowin also reiterated that it is trying improve the situation by shifting its sales balance towards export orders. It is also in the process of implementing accounts receivable financing.
The company alsos aid it expects to announce its final results for 2013 on June 30.
Gowin shares were untraded Friday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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