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(#) : The retailing operations in Indonesia were carried out by PT Tozy Sentosa (In Bankruptcy) ("PT Tozy"). The Group had ceased to have control over PT Tozy as disclosed in Note 19(a) and Note 23.
Hi Jaffery, Fool is right on the PT Tozy; basically manages the Parkson Indonesia operations. As part of the accounting requirements, exceptional items from deconsolidation of subsidiary (can be gains/loss) has to be reported separately from its usual operating income. As for the margins, you maybe confused with the % change in the report. You can still calculate the actual operating margins separately. As for news, it was announced months back on the status of PT Tozy and it’s deconsolidation.
There are a few more corporate developments going on within Parkson including risk of PN17; hence the reasons why it’s selling its treasury shares and initiating pp shares for its working capital - to preserve cash. This is on top of other action plans put in place. You will have to pull back all its previous announcements and it’s spelled out accordingly; what triggered the risk, action plans and timeline.
Auditors' report on preceding annual financial statements
The Auditors has issued an unqualified audit opinion and the Auditors' report on the financial statements for the financial year ended 30 June 2020 included a paragraph on material uncertainty related to going concern of the Group. The Auditors highlighted that the Group reported a net loss for the financial year ended 30 June 2020, and as at that date, the Group's current liabilities exceeded its current assets; and that the Group's financial performance and operations were impacted by strict quarantine measures and movement control restrictions, caused by the COVID-19 pandemic, that have resulted in temporary closures of certain retailing stores in its key markets during the financial year ended 30 June 2020.
Yes and No, Megat :) if financial report or the business is as simple as just the income statement, revenue comes in cash, upfront, products delivered and recognised right away, expenses paid and incurred right away, then net income = cash that the business generate. In this case, you will be right that on paper positive but did not see the cash:) however, in reality - most businesses is not as simple as it is and hence, there’s the balance sheet and cash flow statement :) It is still a profit generated but did not ADD to cash balances. the expectation from Parkson has to be right - it was a money losing business for years and starting to show good sign with the exit of Indo ops. There’s still the Vietnam ops and other actions that the mgmt is working on.
Hi EpicNostalgia, why fake qr? Parkson is a public listed company and its report is subjected to audits. The risk associated with investing in Parkson remains the same as the mgmt continued to work hard to address the requirements that led to the risk of PN17. We will know the overall situation/PN17 risk by the end of current fiscal year which has been changed to year end; 18 months durations.
You are welcome, EpicNostalgia. All the details are available and in announcement sections - qr report, corporate actions, and other disclosures. If you are holding Parkson shares and risk of PN17 is of your concern, then, it makes sense to at least keep track of its progress between current liabilities and current assets. This was the criteria that triggered the MUGC from auditors based on FY2020 annual report and actions to be taken subsequently; including resale of treasury shares and pp :)
Hi Mr cheng I noted of your worries on pn17. There is no pn17 and buy selling treasury shares at cheap prices won't contribute much. As WC mentioned all he needs to do is revalue its assets actually. As their assets has not been revalued. So hope this clarifies on your pn17 issue.
hi gold kinh, I am not worried about the risk of PN17 as I am just holding some free tickets. Just sharing some opinions to correct the wrong perception of treasury shares sales as the one off gains :) If William Cheng's plan is just to revalue its assets to turnaround Parkson, then, I will not hold my free tickets anymore :) Just sharing - asset revaluation is done on non-current assets/fixed assets. If there is any revaluation gains/surplus, the impact is on the equity; no impact to current assets. Current liabilities is still something that William Cheng has to address :) Just my opinions, could be wrong. Hope it helps.
Yes cheng it's true. Treasury sales issue this guy is in dreamland and does not know what his talking about. The turnaround of parkson in China is the early signs of great things to come. When parkson was in its hay days the stock was running base on earnings and at that time they didn't have all the assets they have today as most of the malls were rented. Today they have malls they own sitting in Beijing and shanghai which is worth a bomb. I will hold my horses at current valuation.
As William Cheng mentioned he is not worried of any pn17. China turnaround and bleeding Indonesia operations no more, China will contribute to Malaysia earnings. Looks like will just hold as at current valuation there is actually nothing to complain.
