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What does tight credit mean? Are these distributors taking on debt to buy product? And now they can't?

AR has been on the rise for over a year preceding this tight credit excuse--outpacing revenue growth

AR is far in excess of the competition. DSO for CGA was around a month--same type of business. Credit markets not affecting everyone equally?

There can be no doubt that the revenue growth they report is only made possible by allowing distributors to take on product they apparently can't pay for with out a loan. Shouldn't this little bottle of stuff sold to 30,000 discrete stores have a less lengthy shelf life on distributors shelves?

Whatever the reason, this is just a bad business model--giving credit to distributors then taking out a loan to cover cash shortfall. YONG is paying interest and their distributors are getting a freebie loan. Not ideal

We will see how revenue grows this Q if they continue to put pressure for timely payment on those 810 distributors.

They collected AR but failed to update us on how much more accumulated during the quarter

All in all I find it inappropriate that the company even feels the need to issue a PR on a balance sheet item outside of the normal reporting for the quarter. They should fix it quietly and let it go. Their preoccupation with constant defense of their business practices looks aimed at making them credible and boosting the price. They need to get on with running the business sensibly and forget about the market.
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