RM10.5m profit nothing to shout about. Despite total assets growing from RM3.85b to RM3.95b, the NTA has dropped from RM0.60 to RM0.55. This must be due to new additional shares being continuously issued in the last 6 mths. Very disappointing to note that there is still no contribution from Thai operation in the last 6 mths. This is totally unacceptable as so many millions of RM been spent and still no contribution. Price of ethanol as a commodity has spiked to new heights in 2021 and yet NO CONTRIBUTION. Great opportunity to capitalize on good ethanol pricing has been lost here. Really wonder why? What is KNM Management's strategy for the Thai operation? For Q3,2021, hope KNM don't come and say the same story as this will reflect badly on the new management team. They have to quickly buck up and come up with viable strategy for the Thai operation. Also another disappointment noted in their reporting is, there is no latest update provided on the Peterborough WTE venture. Why? To attract investors to invest in KNM confidently, KNM need to provide and reflect all pertinent information in their reporting so that existing and new investors are very well informed to make an informed decision.

To create a GREAT company a great management team with GREAT vision is needed. Hope the new KNM team learns and takes the lead to continuously add value to all stakeholders.

The Board of Directors acknowledges its responsibilities to safeguard the shareholders’ investment and the Group’s assets.

Just would like to know how the interest of the minority shareholders are taken care off with so many Private Placements (PP) issued out which are diluting the existing minority shareholders % equity holdings and the company’s earnings per share (EPS). This exercise is also suppressing the share price as a whole.

Not withstanding another proposed issuance of New ordinary shares of 987,517,700 via EGM on 29/6/2021 which is pending approval, the following PP has been completed between 26/10/2020 and 21/1/2021 :-

26/10/2020 - Issued 26,684,800 new shares @ RM0.17
20/11/2020 - Issued 242,500,000 new shares @ RM0.165
21/1/2021 - Issued 296,923,400 new shares @ RM0.175

a)What is the rational to have so many PP which has a diluting effect for the exiting shareholders?

b)To who was all these shares issued to? Like KNM to practice some transparency on this.

c)Where is this shares which has been issued reflected under the 30 largest shareholders list @ 22/4/2021, as shown in page 169 of the annual report?



In relation to the trade receivables, it is noted RM43.2M (which is past due for more than 120 days) has been set aside for impairment loss.

a)Who is the customer behind this loss and what has been the reason for the default?

b)What effort has been or will be made to recover this before completely writing this off?

c)What will be done in the future to avoid such default from recurring?

Questions as submitted to the Co Secretary. They only read Q1. The rest were not read and answered. Why?

WTE Peterborough project

Not much info has been provided on the WTE project in the UK. It is just stated that the WTE project in the UK is currently under development. Year after year we are just hearing that the WTE project is under development without much progress. Please elaborate on the following :-

a)What % of work has been completed to-date?

b) What are the scope of works which has been completed to-date?

c) What is the current total projected cost for this project and how much has already been spent on this project to-date?

d) When is the final target date to complete this project for commercial launch?

e) Has the necessary financing been fully secured to complete this project per the agreed target completion date?

f) Do we foresee any major risk and or obstacles in completing the project per the target timeline?

g) If not much progress is seen in this project, is there any plans to dispose off all assets under this project so that the funds raised could be released to pay off debts?

Not much update nor transparency is seen on this project. Request that WTE project progress update is accordingly shared in the quarterly reporting and the yearly Annual Report for all shareholders understanding.


Bio -Ethnol Production in Thailand

With regard to the Bio-ethonol plant would like to know the following :-
a)300k liters production expansion was mentioned to be in progress during last year’s AGM held on 13/8/2020. Again this year, once again it is mentioned that 300k liters per day of bio-ethanol production facilities are currently under development.

i)Please elaborate as to when this 300k liters expansion work is going to be completed and brought to commercial production?

b)What is the current average available total production capacity and average actual operational production for this plant ?

c)Per the Chairman’s statement, the production of the bio-ethanol plant in Thailand was substantially lower in FYE2020 due to the lockdowns, coupled with significant increase in the cassava chip prices in the second half of 2020 driven by high demand from China and limited supply caused by cassava deceases.

i)Does this mean there is no firm contracted or alternative feedstock supplies been established?

ii)What has so far been done to ensure that the plant continues to operate at its full capacity without any shortage of feedstock supplies in the future? Has this problem been fully fixed now?


d)It has been observed that the price of ethonol has surged from April 2020 to the present time and looks like KNM had failed to ride on the higher selling price opportunity. However, it has been indicated that due to various reasons like shortage of supplies, higher cassava chip prices, lockdown etc has lead to lower production thus rendering the ethonol venture to have not done well. Seek some clarification to the following :-

i)Who was leading the Thailand plant during this challenging time and what is the competency level of this person?

ii)Has any changes been done to the Management to improve on its competency level so that any shortcomings in the efficient management of the plant is addressed so that they are well prepared and equipped to face similar challenges in the future?

iii)Who is currently leading the Plant?


e)It has been mentioned that RM31.17M been impaired due to unsatisfied past performance of the bio-ethanol plant.

i)What is this unsatisfied past performance? Please elaborate and also indicate what remedial actions has been taken to fix any issues.

ii)How much has so far been invested in this project?

iii)If this venture is not doing well, is there any consideration to dispose off the Bio-ethanol plant?


f)In the Q1, 2021 reporting (under Asia and Oceania segment), it was mentioned that there was no contribution from Thailand operation.

i) Is this not a material event which justifies disclosure to shareholders via a Bursa announcement?


Not much update nor transparency is seen on this Bio-ethonol operations. Request that better update is accordingly shared in the quarterly reporting and the yearly Annual Report for all shareholders understanding.

The Co Secretary has now acknowledge receiving the questions. Hopefully, the BOD can shed some light.

I just tested sending email to other email address and it seems to be working fine.

I have been trying to email some questions to the Co Secretary to raise the questions during the AGM tomorrow. Strangely, they keep telling they have not received my mail. How can I go about getting the questions delivered to them. Anyone got any suggestion?

I can raise online during the virtual meeting but there are character limitations in Boardroom system

For those registered to attend the virtual mtg tomorrow, Boardroom will be emailing you the Meeting ID, User name and Password by tonite. Pls check your email. If no email received, call them at 03-78904700

No turning back. Vote to kick the present team out. Also vote against the PP. Bring in the Germans to run the show more efficiently and to build the company to a much stronger level. The assets are still intact and KNM can be turnaround to benefit all shareholders in the long term.

Suggest everyone to attend the virtual AGM meeting on 29/6/21 and raise your questions/concerns objectively. This is an opportunity to convey your total disagreement and displeasure with the present team and off course exercise your right to vote to kick all of them OUT.

Keeninvestor11 Where to cast our vote? I have registered with boardroomlinited but I can't see where I can cast my vote. Pls advise.
09/06/2021 6:50 PM

You will only be allowed to vote on the day the AGM is opened and held i.e. on 29/6/21 @10.am. If you have already registered for virtual meeting, Boardroom will first verify your account and provide you (by email) with the relevant Meeting ID, User Name and Password just 1 day before the meeting. On the day of the meeting use these details to log into the virtual meeting and then vote.

Please don't forget the meeting date. Exercise your right to vote to kick out the present team.

The below is one of KNM management comment on Q1, 2021 result:

"Amid the COVID-19 pandemic, the Asia & Oceania Segment posted a lower revenue of approximately RM19.89 million in Q1 2021 as compared with RM54.94 million in Q1 2020 mainly due to slower order replenishment and no contribution from Thailand’s operations".

Ins't no contribution from Thailand's operations considered a significant event, thus requiring public announcement/disclosure ??

You can register at below site :

https://investor.boardroomlimited.com

Yes, kick them out. Get ready by registering at Boardroom to attend AGM and to vote them out.

Director ENCIK MOHD RIZAL BAHARI BIN MD NOOR has resigned.

I fully agree, its already time to kick the present management out. Management is poor and lacking transparency.

Below are some of the questions prepared and submitted to KNM to address during the forthcoming AGM on 13/8/2020. Should there be more questions, suggest raise it as well. This will benefit all shareholders.

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

KNM Group Berhad - 18th AGM (Virtual Meeting) on 13th August, 2020

1. It has been mentioned that the preliminary site infrastructure works has been completed for the WTE Peterborough project.

The planning on this project has been going on for many years without any much concrete progress at sight. When is work on this project proper expected to be started and completed for commercial launch considering approval has now been granted on the plant design by the Peterborough City Council on 10/5/2019?

Has all the necessary competitive financing been secured for this project?

Does KNM foresee any other major obstacles in getting this project completed per its planned timeline?

What are the associated risk and impact to KNM if it does not complete this project per its planned timeline?

Moving forward, how does KNM plan to strengthen its position to further develop its WTE business in Malaysia and in other parts of the world?

2. We are in the middle of a Pandemic and considering KNM is also in the business of ethanol production, how does or is KNM capitalizing the application of ethanol for sanitizer production etc in the health industry?

If at all, ethanol are supplied for any sanitizer production, how are this information being made public to investors? The current KNM share price appears to be not reflective of this business potential. As a shareholder, I am expecting KNM to disclose or announce material information so that the share price are fairly reflected.

Understand that the additional 300,000 liters of bio-ethanol capacity expansion are underway. When is this expansion expected to be completed and how and by when do we see this expansion contributing to KNM’s bottom line?

3. Under the P&L statement, RM67.525M as been shown as Finance Cost for Yr 2019. This has increased in comparison to Yr 2018 which was reported at RM60.717M. Why do we see an increase in Finance cost in Yr 2019 when the total loan & borrowings for Yr 2019 is lower at RM1.467611B in comparison to Yr 2018 where the total loan & borrowings stands at RM1.470606B?


4. In relation to the trade receivables, the impairment loss written off for Yr 2019 amounts to RM26.475M. This is an increase of RM11.790M in comparison to Yr 2018 where the impairment loss written off amounts to RM14.685M. This reflects and indicates a higher non- collectable of dues from customers which would otherwise have contributed positively much higher to KNM’s bottom line. How does KNM plan to reduce this exposure/risk moving forward so that all rightful dues are collected in full with zero default?

5. KNM Process Systems Sdn Bhd has requested for an arbitration due to disputes against Lukoil Uzbekistan operating Company.

What is the quantum of the claim and what is the present status of this arbitration?

6. There was a proposal to dispose Borsig ZM Compression GmbH for a cash consideration of Euro 28.0M and subsequently on 31/12/19 it was announced that the completion date for the proposed disposal has been postponed to a date to be determined.

What was the reason for this disposal to be postponed and what is the present status of this planned disposal?

KUALA LUMPUR: Shares in KNM Group Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png

were boosted in early trade Monday after announcing a RM101mil contract in Myanmar.


The counter rose 5.26%, or 0.5 sen to 10 sen with over four million shares traded. In the past one year, it has fallen some 58%.


KNM announced that its unit has secured an engineering, procurement and construction contract worth US$24.87mil (approximately RM101.35mil) for a liquefied petroleum gas (LPG) facility in Myanmar.


KNM said the its wholly-owned unit KNM Process Systems Sdn Bhd received the complete executed lump sum turnkey contract today with CECA Gold Company Ltd.



The contract is for the engineering, procurement and construction of a liquefied petroleum gas receiving, tanking, storage and bottling facility in Kyaut Tan Township Thilawa, Myanmar.


Read more at https://www.thestar.com.my/business/business-news/2019/03/04/quick-take-knm-shares-boosted-by-rm101mil-contract-win/#Icouh1KHyHYITKId.99

For RM200M you can now buy this RM1.4B revenue generating company. This will be a super buy.

A very good target for takeover and to turn it around. Current Mkt Cap RM308M, NTA RM0,97, Yearly Revenue RM1.4B, with potential to grow further.

In comparison to 1 year ago and now the company's position (except for share price) has improved in every sense. Current share price is grossly undervalued. Good time to buy and accumulate. With PP3 additional capacity, the next Q should be much better (should be able to see even higher revenue growth) thus can expect to see even a much better and strengthen balance sheet.

Sardin81- I really admire your confidence. I have confidence in the company but not so much in the Management. The Management needs to display dynamism with positive actions/news. They need to gain back the investors confidence by sharing the latest developments and updates so that all are kept well informed. Like I say the Company do have a great potential for a big swing upwards as they have all the positive credentials. It is recording a revenue of about RM1.4B, NTA is at 0.96sen and with good assets (Borsig, Bioetanol, WTE etc) with potential for future growth. However, share price is so depressed at 0.135. Lets just hope for some positive news. Can't wait for the next QR report.

KNM is a company with great potential for a turnaround. It is not in a PN 17 category at the moment.. They just need to show the profit to indicate it is in the horizon of a turnaround. This is where the investor confidence will be gained. Most importantly, KNM need to pair down their debts. The interest charges are eating into their profit. Their debts are in multiple currencies. I think the strengthening dollar is also increasing their debts after conversion to ringgit. KNM is well aware of this but keep saying that their debts are under control. Whether it is under control or not, it will be reflected in their reporting. Let's hope the next QR is positive. Hope KNM Management understand the urgency for a quick turnaround and build back the investor confidence.

KNM investor relation is not doing a good job. Don't see the dynamism

KNM has been too quiet. They need to give update on the Peterborough project. They need to build investor confidence. Latest info/update is really lacking.

Higher Naptha price not good. However, LCTitan will adjust its products selling price accordingly should its material feedstock price continues to remain high.

Per the feedback during the last AGM, work on the Peterborough project is suppose to start in August, 2018. Still no update.

The management should always keep Shareholders updated but they keep them in the dark. This management is not learning.

With current low share price with reasonable growth in revenue, KNM can also become a target for take over by other companies.

Have sent an email to KNM, will they respond?

Dear KNM Management,
It has been disappointing to note yet another grandfather disappointing story from you on the Q2, 2018 results. KNM has become a great story teller each Q which is not pleasing any shareholders. To refresh your memory the losses recorded since 2016 has been as follows :

2016 - RM311m
2017 - RM42m
Q1, 2018 - RM18m
Q2, 2018 - RM33m

As a result of these continuous losses, KNMs' balance sheet is getting weaker i.e the hard fought and built up reserves (retained earnings) has dropped significantly by an astounding RM1345m when compared between the position as at 31/12/15 (RM1766m) and 30/6/18 (RM421m). If the trend continues this reserves could soon be completely wiped off and KNM will be in total distress mode.

Despite raising RM51m via a private placement on 29/11/17 of which RM40m was paid to reduce your debts, your total loans and borrowings (in multiple currencies with high forex risk exposures) as at 30/6/18 (RM1296m) has in fact increased by RM108m in comparison to the Loans and borrowings amounting to RM1188m as at 31/12/17.

With all these losses and mounting debts with high forex risk exposure, I regard KNM is bleeding and in trouble waters, now blindly heading towards a storm. Please move the ship to the shore and first find a way to fix the holes and cracks in the ship. Please review the assets (e.g Borsig) and loss making segments and consider some disposal so that the loans and borrowings could be reduced/paid off with a view to getting back into profitability and strengthening the balance sheet for the mutual benefit of all the distressed shareholders.

The above high debt level was brought up and mentioned during the last AGM and the Management mentioned that the debts are at manageable level. If it is at a manageable level, then how come still continuously showing a loss despite recording higher revenue in Q2, 2018?. The recorded higher revenue trend is still a good positive sigh for KNM despite the losses as KNM still has hope for a positive turnaround provided some drastic measures are taken. Hope KNM Management can openly reconsider its view and thoughts on this matter.

I also note that there has been on mention on the progress of the Peterborough project in the latest report. Hope KNM can exercise some transparency on this matter as well so that shareholders are in the know and not kept in the dark.

Consider already oversold

Next AGM ask management to take a pay cut or to just resign. There is still no acceptance of Armada Kraken. Looks like they have redefined the acceptance details for the project. Wonder when they can achieve the full acceptance. Until full acceptance this is still a thorn in the butt.

To me this is like cleaning up their books. Without the impairment the profit to the owners is 107m. So in the next Q, there should not be any provision for impairment unless the management screw up. With 2 more Q to go, I think the net position for 2018 will be a loss even if they show a profit for the next 2 Qs'. I think time to change this management.

Total impairment of 479m was due to revaluation of each vessel based on estimated recoverable amount.

All this due to Kraken delays. Huge compensation.

Loss 537m

Expect PAT only around 45m for the last Q

Agree KNM has good future potential but positive turnaround need to happen by this year and KNM also need to update investor on latest development/progress on the Peterborough project.

Let's keep our fingers crossed for a good Q2, 2018 reporting. The truth will be known before end of this month

Sardin 81, yes their debt as at end of last year is close to Rm1.2b, 6% interest on this works out to be 72m and not 7.2m. Anyway, for last year their finance cost was reported at RM47.8m, The high finance cost is one of the main reason why they are reporting a loss. For Yr 2016 they reported a loss of RM333m, for 2017 loss of Rm45m and 1st Quarter 2018 loss of Rm18.4m. If this trend continues then the present positive retained earnings will eventually get wiped off and company may go into financial trouble. I can see this company has a lot of potential for a turn around. To get the investors confidence, the company need to report a decent profit and show the profitability as a trend moving forward. On the Peterborough project, KNM need to provide update on the latest. After the AGM, I have written to KNM asking them to share the slides as shared during the AGM, but they are reluctant sighting confidentiality. This is where I see them lacking in providing the necessary info to shareholders. It is high time the Management buckle up and deliver the positive result.

AGM held on 27/6/18

During KNM AGN on 27/6/18, it was mentioned that for Peterborough project, the drawing and design has been approved and expected to commence construction in August 2018 subject to advance payment guarantee from vendor. Just wondering what is the latest status on this project .

A very good article with fair assumptions. Hope reality does not deviate much.

Construction of plant at Peterborough expected to start in August 2018 and to be completed around Q3, 2021

Agree with Ks55. Hype TV sucks. Forced onto customer. Customers should be given the choice. It is time to change all these unprofessional practices.

KNM total debt stands at RM1.175b

I think the good news will come in the Q4 announcement. I am confident Q4 will show a much improved profitability position in comparison to the last 3 quarters (hope no negative surprises). The last 3 quarters cumulative profit amounts to only RM3.7M. By Q4 2017, KNM Management should have practiced more lean and prudent management. With the Eternol production in Thailand going full swing into commercial operations, I think it would be a fair expectation for all to look forward for a positive revenue growth and profitability moving forward.

Let's just keep our fingers crossed and hope for a better Q4, 2017 announcement. Bearing any unforeseen negative events I think it would be a reasonable expectation for all shareholders to look forward for a positive push factor.

With the present NTA of RM1.14 and with potential for additional growth in the coming years, this stock is grossly undervalued at the present moment. Just have faith.

Opportunity to top-up. Have faith. Q4 result will be positive. Will give the impetus for KNM to move up. Think positive.

Any idea why registering high volume with downward trend?

NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS) : OTHER ISSUE OF SECURITIES HIBISCUS PETROLEUM BERHAD ("HIBISCUS PETROLEUM" OR "COMPANY") PROPOSED FREE WARRANTS ISSUE

Type Announcement
Subject NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS)
OTHER ISSUE OF SECURITIES
Description HIBISCUS PETROLEUM BERHAD ("HIBISCUS PETROLEUM" OR "COMPANY") PROPOSED FREE WARRANTS ISSUE
We refer to the Company's announcement dated 8 December 2017 in relation to the Proposed Free Warrants Issue ("Announcement"). Unless otherwise defined, the abbreviations and definitions used in the Announcement shall apply herein.

On behalf of the Company, RHB Investment Bank wishes to announce that the listing application in connection with the Proposed Free Warrants Issue has been submitted to Bursa Securities today.

This announcement is dated 17 January 2018.