Dr Johnny Liu (right), Chairman and CEO of Dutech Holdings, with Singapore visitors recently. NextInsight file photo.From a cashflow perspective, operating cashflow before working capital changes was 16.2m RMB in Q4 2014 compared to 41.4m RMB in Q3 2014.
Excluding losses from DTMT, operating cashflow should be meaningfully higher.
Investments -- financial instruments & PPE
Dutech purchased 100m RMB worth of treasury products from Ping An Trust and Hua Tai Securities. Maturities range from 3 to 6 months with annualized yields of 4.5% -7%.
Dutech has invested heavily in PPE and land, spending 24.7m RMB and 18.8m RMB respectively in Q4 alone.
These figures alone are higher than the entire PPE capital expenditure in 2013.
This suggests that the company is confident of its new business of supplying gaming machines to its one and only customer, Scientific Games International (SGI).
We can expect this segment to be the growth driver in future. On top of that, Dutech is actively looking for acquisitions and is not ruling out the possibility of one in FY2015.
