According to Nata Opto, one of China’s largest MO source enterprises’ three quarters report, its net cash flow generated by business operation is RMB -24.6091m, down by RMB 139.1409m than the same period last year, accounts receivable for RMB 37.3866m, up by 336.32% or RMB 28.8179m, mainly due to slow payment collection in 2012.
 
Ending inventory balance amounts to RMB 92.4724m while the total running cost of the previous three quarters is only RMB 66.1677m, in which speed Nata Opto need over 1 year to clear all inventory.
 
Nata Opto has run a rollercoaster for its business with adding up accounts receivable and hard payment collection and de-inventory. Thus it is imaginable that Nata Opto will face huge difficulties to realize its commitment for “maintaining good profitability in the future” as said in its three quarters’ report.