Shanghai : AWM 0% Turbo Enterprises : AWM 0% stated it should be able to meet current liabilities through “careful” cash management and strengthening its cash flow position in a bid to allay concerns from the Singapore Exchange (SGX) over its liquidity.

The company, in its statement in response to SGX queries last Friday (Sep 16), noted that its current deficit as at Jun 30, 2022 was “only” about 5.5 million yuan ( S$1.1 million). Hence, it would, by careful cash management and successful rollover of its short-term borrowing that are due in the first quarter of FY 2023, possibly meet its current obligations.

The mainboard-listed maker of precision vane products for steam turbine power generators also intends to strengthen its cash flow position over the next 12 months by increasing revenue and accelerating customer collections.

“The company has formulated a debt repayment plan and asked the purchasing department to arrange for major suppliers to accept special payment terms, and at the same time urged customers to expedite their debt obligations to the company,” the statement said.

Its ability to continue as a going concern will also be enhanced by 2 shareholder personal guaranteed loans totalling 9.5 million yuan obtained in March 2022 – at an annual interest rate of 4.7 per cent.

The counter, at market close on Friday, was trading flat at S$0.081.

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