China Minzhong - Still worth to invest?

China Minzhong, one of my previous favourite stocks in Singapore stock market, has recently announced its latest quarterly report. With lower net profit margin and hiking of receivables and payables, it prompted me a lot of curiosity in its accounting standard.

Firstly, why would the sudden climb in receivables come together with the payables? As what I understood, the vegetables business require you to make the payment in cash to the suppliers. In my mind, I am still worry about the recent accounting scandals happended in one of the Hong Kong listed companies give a negative impact to the investor society here.

Secondly, with increasing bank loan to expand the business, my worries is that the company is not able not able to do so in near futures if the Europe crisis remains. Of cause, this is only a guess, as I do not really do the detail homework on the clientele of China Minzhong.

However, we still can see that the cash flow from operating is still in positive figure (partly due to the increase of total payables), but the total cash flow is in negative mode due to the increase in investing cash flow. So what I can foresee is the company is unlikely to return shareholders in good dividend. 

With current price of 54.5cents, let's see if the company can overturn the downtrend of the price. I sincerely hope that the company can grow with better financial controling in its optimal debt structure.