Gelonghui, April 25 丨 Some investors asked Sinoma International (600970.SH): The company's accounts receivable balance increased in 2022, and net cash flow from operating activities decreased year-on-year. What is the main reason for the fluctuations in the above categories? What countermeasures do you plan to take next?

Sinoma International responded: The company's net accounts receivable at the end of 2022 increased by about 2.4 billion yuan compared to the beginning of the year. The change was about 46%, exceeding the year-on-year increase in operating income in 2022. First, I need to explain that the company's total net accounts receivable and receivables financing at the end of 2022 increased by about 1.2 billion yuan compared to the beginning of the year, which is lower than the increase in net accounts receivable. The main reason for the increase in the size of accounts receivable was the decline in the domestic cement market in 2022, and the impact of overseas owners on payment progress due to factors such as US dollar interest rate hikes and appreciation, and foreign exchange shortages.

We expect an improvement in the domestic and foreign accounts receivable situation if the exchange rate stabilizes. The company insists on pursuing “profitable income, profit with cash flow”, and will continue to reduce the pressure on accounts receivable in an effort to match the net cash flow from operating activities with profit levels.