- General Announcements

Type of Meeting: Annual General Meeting
Indicator: Key Matters Deliberated
Date of Meeting: 25 May 2018

 

Time: 09:00 AM
Venue: Function Room 4, Level 1, Ixora Hotel, Jalan Baru, Bandar Perai Jaya, 13600 Perai, Penang

 

No. Question raised by Concern Answer
1. Lew Tuck Wai Realised and Unrealised Gain/Loss on foreign exchange

Mr. Loo Hooi Beng (LHB), the Chairman of the Audit Committee of the Company answered that the “Realised” on foreign exchange arisen from the exchange differences between foreign currency transaction rates and conversion rate, whereas “Unrealised” was referred to the exchange differences between foreign currency transaction rates and closing rate. He added that there were some impact of the FEAR imposed by BNM on foreign exchange gain / loss.

The reason not doing hedging.

As the 90% of the Group’s Revenue and most of the purchases were transacted in USD, Mr. David Chen (DC) continued that the forex fluctuation risk be mitigated from time to time via natural-hedging.

LHB mentioned that based on the current size of the Group, practicing natural hedge is an effective approach.

Mr. Khoo Lay Tatt (KLT), the Chairman of the Company shared that by entering currency hedging with any banker, might not be risk-proof either.

The Reversal in Impairment loss on trade receivables

DC explained that one major customer changed its receiving system which caused the payment was not processed on time and as such, the provision was made initially based on the Group's policy on credit control.

Upon continuous collection of overdue debts, the reversal of impairment of trade receivables was then made accordingly.

The Reversal of Inventories written-down of RM11 million

DC replied that the Reversal was made during the financial year as the related long aging inventories were sold and reduced. DC stressed that it was an accounting treatment based on conservatism principle to evaluate impairment of inventories.

The reasonableness and practicality on the estimate annual value for some RRPT transactions were way too much than the actual amount transacted. The Company noted the comment.
2. Chong Sui San Concerning the Company’s action to buy back its shares to strengthen the market confidence

DC informed that any share back-back would reduce the financial resources of the Group and hence, the Board would be mindful of the interests of the Group and shareholders before taking any action. Apart from the requirements imposed by the Bursa Malaysia Securities Berhad Main Market Listing Requirements, he continued that the Company has also in place its internal guidelines for the exercise.

 

The Directors noted the shareholders’ concern.

3. Mak Tian Meng
4. Law Eng Keong Stakeholders’ confidence will be affected if the continuous low market capitalisation The Company noted the comment.