Zhonglan Environmental Protection shares plunged over 14% intraday on June 17
and closed at 26.20 yuan, down 11.64%. Market reports said a major shareholder
sold shares at elevated prices. The company said reductions by shareholders
holding more than 5% have not finished and confirmed relatively high accounts
receivable, attributing this to its engineering business model. It has formed a
dedicated collections team to recover payments, will factor client payment
records into new bids and seek higher-quality projects. The company said there
have been some new orders year-to-date; any large contracts meeting disclosure
thresholds will be announced and interim performance will be reported in the
half-year results.
