GUANGDONG Foshan Ceramics Group, an H-share listing candidate, admits that it faces triangular-debt problems.
The mainland company's vice-managing director Chen Xinxi said yesterday that other companies owed Foshan Ceramics 'tens of millions' of yuan more than it owed others. But he refused to say how much the company was owed.
'Sure, we have triangular debts, but we're not the only ones. This problem is everywhere,' he said.
He attributed the company's triangular-debt problems to 'a chain reaction of credit problems' among many mainland companies due to China's austerity measures and weaknesses among the management of companies.
Mr Chen said Foshan Ceramics had responded by improving its financial controlling system this year.
The company would continue to do business with others that had good credit reputations. Those representing credit risks would have to pay in advance of the delivery, or the business relationship might be terminated.
