China Environment

China Environment: Disclosed it may need to raise capital if its customers fail to pay up on time due to the deteriorating operating conditions.

Negative factors that include tight credit environment and slow work progression may have an impact on the group's collection of trade receivables.

From the impending short term cash flow issue, China Environment is opening up to fresh funds either from existing shareholders, new private placements, or other debt financing methods such as issue of preference shares, notes or bonds.

Separately in relation to the minimum trading price requirement for Mainboard-listed counters on SGX, China Environment is considering several options to stay compliant, which includes:

- share consolidation;
- transfer to the Catalist board;
- acquisition of new businesses to improve shareholders’ value;
- reverse takeover; or
- a combination of any of the above.

At the current price, China Environment trades at a trailing P/E of 7.7x and is estimated to release results on 10 Nov.