Posted by firehawk > May 2, 2020 11:46 AM | Report Abuse
From my understanding, Preference Share would not share the profit (unless it is converted to ordinary share), but entitle for dividend. Maybe i'm wrong ..... ------------ Ans : In Jaks case, Preference Share is entitled to dividend is good enough. Not important to share the profit. Am I correct ? Thank you.
Posted by DK66 > May 2, 2020 12:19 PM | Report Abuse
While I will research further, I would like to request Mr OTB to seek clarification from Jaks management if possible. --------------- Let me know, I will do it for you. Thank you.
Wrong. Dividend first for preference share holders before declaring dividend to ordinary shareholders.
Posted by OTB > May 2, 2020 12:32 PM | Report Abuse
Posted by firehawk > May 2, 2020 11:46 AM | Report Abuse
From my understanding, Preference Share would not share the profit (unless it is converted to ordinary share), but entitle for dividend. Maybe i'm wrong ..... ------------ Ans : In Jaks case, Preference Share is entitled to dividend is good enough. Not important to share the profit. Am I correct ? Thank you.
Posted by VIN3133 > May 2, 2020 12:13 PM | Report Abuse Bro DK66 , you are so very patient up to the extent that you do not know how to explain further ! You are great !!
DK66, you are really a good man
when I first came to i3 , i thought every man writing here is a good man , later on I found that it is not when I met DK66, I understand 1 truly good man worth more than many potatoes what more we still have Icon8888, Pjseow, Probability , OTB and many more now.
I come across, a company declares dividend for preference share but no dividend for ordinary share, thus, i infer the dividends could be different. Maybe i'm wrong ....
---------------------------------------------------------- Posted by DK66 > May 2, 2020 12:48 PM | Report Abuse
Firehawk, it is made clear that the dividend will be the same
Please clarify with the management on the following question
Is the proportion of "share of profit in JV" from JHDP to be recorded in Jaks financial statement in the first 3 years after the commencement of operation to be based on equity interest of 50% or economic interest of 30% ?
firehawk, your point is generally valid. However, it is made clear that the rcps does not carry dividend rate, it is ranked "pari passu" (equal) in all dividend payable to ordinary shares.
------------- Aseng Posted by VIN3133 > May 2, 2020 12:13 PM | Report Abuse Bro DK66 , you are so very patient up to the extent that you do not know how to explain further ! You are great !!
DK66, you are really a good man
when I first came to i3 , i thought every man writing here is a good man , later on I found that it is not when I met DK66, I understand 1 truly good man worth more than many potatoes what more we still have Icon8888, Pjseow, Probability , OTB and many more now. 02/05/2020 12:49 PM
newbie8080, this is not the case for JHDP as RCPS does not carry dividend rate.
Even so, note that JAKS controls JHDP. Do you think JAKS will only declare dividend to RSCP which are wholly owned by CPECC without dividend to equity holders ?
--------------- newbie8080 Wrong. Dividend first for preference share holders before declaring dividend to ordinary shareholders.
Posted by DK66 > May 2, 2020 1:52 PM | Report Abuse
In any case, it is my opinion that the share of profit will be based on economic interest as the auditor is not likely to agree to book in 50% profit. ---------------- Ans : During my meeting with the management, they always said that they own 30% of JHDP. They never mention about 50% of the profit. The management is very eager to buy up another 10% of JHDP urgently. I will check on your question and advise you later. I will direct the question to Mr Andy Ang. Thank you.
----------------- OTB Posted by DK66 > May 2, 2020 1:52 PM | Report Abuse
In any case, it is my opinion that the share of profit will be based on economic interest as the auditor is not likely to agree to book in 50% profit. ---------------- Ans : During my meeting with the management, they always said that they own 30% of JHDP. They never mention about 50% of the profit. The management is very eager to buy up another 10% of JHDP urgently. I will check on your question and advise you later. I will direct the question to Mr Andy Ang. Thank you. 02/05/2020 2:09 PM
I do not know much about accounting or Vietnamese monetary policy
both JRB and CPECC are foreign investors in other people land of course they wish to bring home all the profit they have made my common sense tell me it is easier to bring home the dividend than the entire profit so dividend is definitely not an issue they are more creative and clever than us .
DK66,
am I right .
I am just a satay man trying to talk about an expert issue
Dear OTB, you are welcome. And I really appreciate your kind effort in seeking information from the management. Thank you
-------------- OTB Dear DK66,
I think I have a better understanding now on Jaks. Thank you for your good work. Many questions that my subscribers ask me previously which I cannot reply, I believe I can reply them very convincingly now. Thank you again.
Aseng, you are right. That is common sense. Even a monkey will do that ! Please forgive my language :))
-------------- Aseng I do not know much about accounting or Vietnamese monetary policy
both JRB and CPECC are foreign investors in other people land of course they wish to bring home all the profit they have made my common sense tell me it is easier to bring home the dividend than the entire profit so dividend is definitely not an issue they are more creative and clever than us .
DK66,
am I right .
I am just a satay man trying to talk about an expert issue
Posted by DK66 > May 2, 2020 2:14 PM | Report Abuse
Even if Jaks is entitled to book 50% of the profit now, it will need to do a reversal after its equity interest reduced to 30% 3 years later. ----------------- Ans : 30% stake is so good, no point to ask for 50%. However, I was told the management of Jaks wants another 10% stake urgently. I told them to swap Jaks Resources Bhd shares in exchange for 10% stake in JHDP, they still have not come back to me. Thank you.
so, from we had gathered the deal is safe for all parties whether Jaks has 50% now or 30% later dividend is just the matter of time because both parties wish to bring money home
Posted by DK66 > May 2, 2020 2:22 PM | Report Abuse
Dear OTB, if there is anything you need to know, please do not hesitate to ask me. I will do my best to provide you a satisfactory answer. -------------- I always have a sleepless night when I cannot answer any question raised by my subscribers on Jaks. Hence you can notice that I even email you at wee hours to disturb you which I feel not so nice. Thank you for your understanding and help.
--------------- I always have a sleepless night when I cannot answer any question raised by my subscribers on Jaks. Hence you can notice that I even email you at wee hours to disturb you which I feel not so nice. Thank you for your understanding and help.
-------------- Aseng so, from we had gathered the deal is safe for all parties whether Jaks has 50% now or 30% later dividend is just the matter of time because both parties wish to bring money home
Dividend distribution is generally subject to the availability of general reserve. However, the company can make capital distribution. In this case, as the power plant will be handed over to the Vietnam government after 25 years, the equity capital will be returned to the shareholders in the form of capital distribution.
--------------------------------- SALAM Mr DK66, maximum What % of profit in the JV can be declared as dividend? 50%,100%? 02/05/2020 4:56 PM
Actually the 30% or 50% reporting has significant impact, 1. the amount is in the quantum of 100m. 2. the P&L report summary appears as the cover of announcement to Bursa, it will catch public investors eyes. 3. this profit is real profit, it can be used for EPS, P/E ... calculation.
if continue for 3 yrs, it surely affects the stock valuation, lke P/E etc. ... many ctrs in bursa, although not paying dividend, as long as report profit, the price can sustain, not to say a very good profit.
firehawk, you do have a point there. Though I m tempted to think that share of profit will be based on the equity interest, my past experience as a professional auditor with KPMG Peat Marwick, Singapore would not allow me such believe.
It is always the substance of any arrangement that determines the accounting treatment of a transaction. Since the RCPS ranks pari passu with equity shares in all dividend payments, CPECC always get 70% of whatever that is distributed out of JHDP.
What's remain within JHDP regardless of being 50% owned by Jaks currently will become 70% owned by CPECC in 3 years time. In view of this, personally, I do not think the auditor will agree to 50% sharing of profit to be recorded in Jaks' books unless the management has reasons beyond my knowledge to convince the auditor otherwise.
Anyway, lets wait for management response to OTB's query.
In any case, the profit sharing of 30% is already significant enough to cause a boom in Jaks' share price given that the price is only around RM1 currently.
Posted by DK66 > May 2, 2020 1:35 PM | Report Abuse
Dear OTB,
Please clarify with the management on the following question
Is the proportion of "share of profit in JV" from JHDP to be recorded in Jaks financial statement in the first 3 years after the commencement of operation to be based on equity interest of 50% or economic interest of 30% ? ----------------- Ans : Your request had been sent today. Please wait for reply. Thank you.
Posted by DK66 > May 2, 2020 11:55 PM | Report Abuse
What's remain within JHDP regardless of being 50% owned by Jaks currently will become 70% owned by CPECC in 3 years time. In view of this, personally, I do not think the auditor will agree to 50% sharing of profit to be recorded in Jaks' books unless the management has reasons beyond my knowledge to convince the auditor otherwise.
Anyway, lets wait for management response to OTB's query. ----------------- Dear DK66,
The auditor confirmed the profit taken into consideration should be 30% only. Thank you.
The answer is as expected and we shall have no more doubt in this regard though some may feel disappointed.
Thank you so much for your help.
------------------ OTB Posted by DK66 > May 2, 2020 11:55 PM | Report Abuse
What's remain within JHDP regardless of being 50% owned by Jaks currently will become 70% owned by CPECC in 3 years time. In view of this, personally, I do not think the auditor will agree to 50% sharing of profit to be recorded in Jaks' books unless the management has reasons beyond my knowledge to convince the auditor otherwise.
Anyway, lets wait for management response to OTB's query. ----------------- Dear DK66,
The auditor confirmed the profit taken into consideration should be 30% only. Thank you. 03/05/2020 2:07 PM
The conversion of the RCPS will give CPECC a NET total of 40% interest in JPP. This mean the dilution of original equity interest from 100% to 60%, 30% each to Jaks and CPECC. Therefore, CPECC will ends up with a total of 70%.
--------------- brushsoo Hi DK66, Thanks for your contribution. I may not follow fully all your discussions.
Just wanted to clarify, the full conversion of RCPS entitle CPECC's equity another 40% of JPP, hence the equity interest is at 90% 3 years after COB?
How the 70% interest of CPECC, instead of 90% come into picture? 08/05/2020 1:41 PM
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
newbie8080
2,775 posts
Posted by newbie8080 > 2020-05-02 12:30 | Report Abuse
Fair deal for both CPECC and Jaks