Sinopharm is not the lowly geared, cash generative company it seems. Operating cash inflows have been entirely manufactured through two methods: First, trade creditor repayments have been reclassified from operating cash flows to financing activities…an accounting first. Second, the company has sold ever greater quantities of receivables. Adjust for this and there are no operating cash inflows while leverage is worryingly high. Add into the mix the pursuit of growth through acquisitions, reduced financial disclosure, management’s failure to address our concerns, and we believe that the stock is virtually uninvestable.