Cash flow measures cash. It tells how much of money the company took in and paid out during the financial period usually divided into three sections: Cash flow from operations, their investing and their financing.
In Hong Xing case, all three sections are negative, showing outflow of cash of 574M. This is not good for investors.
1) The main concern is the 880M prepayment, deposit and other receivables which is 300% higher than previous year.
Look at previous year, both cash flow from operations and financing were positive resulting a in flow of cash of 2B.
2) The other concern is: 2008 has left only 1.982B cash for 2009, and if company needs additional money, it looks like it needs to get loan. Loan is expensive and it will affect profit in future.
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