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China Fibretech answers SGX's queries on Q1 earnings
IN its response to Singapore Exchange (SGX) queries on earnings reported for the first quarter ended March 31, China Fibretech, whose shares have been suspended from trading on the SGX since November 2015, on Monday evening attributed the slow collection from its debtors to trade receivables being higher than revenue for the period.
The dye maker's trade receivables amounted to 6.3 million yuan (S$1.31 million) while revenue amounted to 2.4 million yuan in its May 15 filing for Q1.
China Fibretech also listed prepayment and other receivables of 4.6 million yuan, which it attributed to the installation and reconstruction of air pollution system. The company said: “As of to-date, no invoice has been received as there are still some minor defects to be resolved.”
The company also attributed lower demand, which saw a decrease in the fabric processed from 1,047 tonnes in Q1 2017 to 265 tonnes in Q1 2018, lower orders received from its existing customers and no orders from new customers due to sluggish demand, and a longer shut down during the Chinese New Year period due to poor demand.
The company also provided a breakdown of directors' fees, which had contributed to an increase in administrative expenses for the period.