‘Silicon Module Super League’ (SMSL) member GCL System Integrated Technology Co (GCL-SI) is planning to sell up to RMB 1.0 billion (US$144 million) of sales invoices to a third party at a discount to improve its cash flow position.
In a financial statement, GCL-SI said that it was seeking a factoring deal in relation to its account receivables that would potentially be in place for two years.
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The Factoring deal would accelerate the company’s capital turnover and broaden is financing channels and help shorten the time for the collection of accounts.
The company had previously reported a significant shift of its sales to outside China in the first half of 2018, accounting for 45.80% of total sales, which had helped return the company to profitability.
GCL-SI reported first half 2018 operating income of approximately RMB 6.08 billion (US$893.8 million approx.), compared to around RMB 6.38 billion in the prior year period, a decline of 4.71%.
The net profit was RMB 2,558.10 million (US$3.79 million approx.), an increase of 6.53% from the prior year period.
