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The Cash Flow Catastrophe is Real and Accelerating. This is the single most important takeaway. The operating cash flow is not just negative; it's a disaster. The problem isn't that they aren't collecting anything; it's that the rate of new sales on credit is still creating a massive cash trap. The report shows they are in a desperate debt spiral. Their suppliers are no longer giving them credit. NationGate is being forced to pay its bills much faster.
They are still covering their interest, but with their cash flow deeply negative, they are paying interest out of borrowed money or existing cash, not from actual business earnings. This is unsustainable.
For the 9 Months Ended 30 Sep 2025 (The Crisis):
Cash generated from operation: (RM 890,298) <- Core business is a massive cash incinerator.
Net cash from operating activities: (RM 986,311) <- After paying interest and taxes, the cash burn is almost ONE BILLION RINGGIT.
For the current period we are analyzing—the nine months ended 30 September 2025—NationGate's operating cash flow is profoundly negative. This colossal cash burn is why their cash balance collapsed from RM 1.93 billion to RM 367 million.
NATGATE is already overwhelmed. This will be catastrophic.
Putin, are you learning accounting for the first day? You put out 3 arguments but all are absurd.
1. you said sales on credit is cash trap, but the reality is that 9 months negative operating cashflow is not due to credit sales. negative operating cashflow (and also high liability) in past few quarters are due to high cost of buying nvidia gpu. their business is a bit different from other manufacturing company, they dont invest much in machine (insignificant investment cashflow), instead invest a lot in inventory (nvidia gpu) and causing high operating cashflow. This misled beginners like you to think that they are difficult to collect payment.
2. You said their suppliers are no longer giving them credit, but I have counted their days payable outstanding, it is increasing from 57 days in 25q1 to 72 days in 25q3. I know previously it was 93 days in 24q1, but I think that was before nvidia gpu purchase, it is normal to assume that when you buy such an advanced gpu, nvidia wont give you too long credit period. days payable outstanding from 24q1 to 25q3: 93, 50, 63, 46,57, 50,72.
3. you said they are paying interest out of borrowed money or existing cash, but the fact is that they borrowed money to buy nvidia gpu, not to pay debt interest and they had indeed made money from there. Look at their simultaneous significant increase in inventory, cash, revenue and profit starting from 24q3. Their cash had been significantly increasing from 24q1 to 25q1. Cash decreased in 25q2 and 25q3 to clear big portion of debt, net debt becomes positive after 25q2.
All data show the opposite of your absurd statement. Learn more please before showing off. Look deeper into accounts, dont simply give shallow interpretation. You are wasting my time to take a second look into Natgate accounts.
I think you should be aware of "The Zombie Company metrics" ratio. Do your math. We will short this counter everyday until NATGATE becomes like GTronic, Genetec & SFPTECH. Not to mention BSLCORP & ATAIMS.
