STOCKS | Zhonglan Environmental Shares Fall 11.64% After Major Shareholder Cashes Out

Zhonglan Environmental’s shares fell sharply on June 17, with the intraday decline exceeding 14%. According to Jin10, the stock closed at 26.2 yuan per share, down 11.64%. The company drew market attention after news that an important shareholder sold shares at elevated levels. Investors also focused on the company’s relatively high accounts receivable. Zhonglan Environmental said the share reduction by shareholders holding more than 5% had not yet ended. On accounts receivable, the company said the situation was partly related to the nature of engineering businesses and that it had set up a dedicated collection team, which was working externally to recover payments. The company said it would consider customers’ payment capacity when bidding for new projects and would try to take on relatively higher-quality projects. It added that it had received some new orders this year and would disclose any large orders that meet information disclosure standards. Zhonglan Environmental said future performance should be based on its semiannual report disclosures.