10 people like this.

70 comment(s). Last comment by brushsoo 2020-05-12 10:06

newbie8080

2,599 posts

Posted by newbie8080 > 2020-05-02 12:30 | Report Abuse

Fair deal for both CPECC and Jaks

OTB

9,967 posts

Posted by OTB > 2020-05-02 12:32 | 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 .....
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Ans :
In Jaks case, Preference Share is entitled to dividend is good enough.
Not important to share the profit.
Am I correct ?
Thank you.

OTB

9,967 posts

Posted by OTB > 2020-05-02 12:34 | Report Abuse

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.

newbie8080

2,599 posts

Posted by newbie8080 > 2020-05-02 12:35 | Report Abuse

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.

DK66

4,269 posts

Posted by DK66 > 2020-05-02 12:36 | Report Abuse

Dear OTB, you are right, it is good enough for CPECC. However, the point is JAKS may have 50% share of profit now.

firehawk

4,515 posts

Posted by firehawk > 2020-05-02 12:47 | Report Abuse

moreover, ordinary share and preference share could have different dividend.

DK66

4,269 posts

Posted by DK66 > 2020-05-02 12:48 | Report Abuse

Firehawk, it is made clear that the dividend will be the same

Aseng

8,633 posts

Posted by Aseng > 2020-05-02 12:49 | Report Abuse

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.

firehawk

4,515 posts

Posted by firehawk > 2020-05-02 13:01 | Report Abuse

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 ....

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Posted by DK66 > May 2, 2020 12:48 PM | Report Abuse

Firehawk, it is made clear that the dividend will be the same

firehawk

4,515 posts

Posted by firehawk > 2020-05-02 13:02 | Report Abuse

@OTB, it could affect P&L report ....

DK66

4,269 posts

Posted by DK66 > 2020-05-02 13:35 | 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% ?

Thank you

DK66

4,269 posts

Posted by DK66 > 2020-05-02 13:38 | Report Abuse

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.

DK66

4,269 posts

Posted by DK66 > 2020-05-02 13:39 | Report Abuse

Aseng, really appreciate your kind words.

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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

DK66

4,269 posts

Posted by DK66 > 2020-05-02 13:42 | Report Abuse

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 ?

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newbie8080 Wrong.
Dividend first for preference share holders before declaring dividend to ordinary shareholders.

DK66

4,269 posts

Posted by DK66 > 2020-05-02 13:44 | Report Abuse

Dear OTB, if Jaks is entitled to 50% share of profit in JV. The amount could be as high as RM326m (EPS RM0.50)

DK66

4,269 posts

Posted by DK66 > 2020-05-02 13:52 | 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.

OTB

9,967 posts

Posted by OTB > 2020-05-02 14:09 | Report Abuse

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.

DK66

4,269 posts

Posted by DK66 > 2020-05-02 14:12 | Report Abuse

OTB, appreciate your kind effort

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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

DK66

4,269 posts

Posted by DK66 > 2020-05-02 14:14 | 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.

OTB

9,967 posts

Posted by OTB > 2020-05-02 14:15 |

Post removed.Why?

Aseng

8,633 posts

Posted by Aseng > 2020-05-02 14:15 | Report Abuse

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

Aseng

8,633 posts

Posted by Aseng > 2020-05-02 14:18 | Report Abuse

moreover CPECC has more dividend to receive
no reason they are not happy to do so

is my common sense right ?
i am willing to learn from you

DK66

4,269 posts

Posted by DK66 > 2020-05-02 14:18 | Report Abuse

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.

DK66

4,269 posts

Posted by DK66 > 2020-05-02 14:20 | Report Abuse

Aseng, you are right. That is common sense. Even a monkey will do that ! Please forgive my language :))

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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

OTB

9,967 posts

Posted by OTB > 2020-05-02 14:20 | Report Abuse

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.

DK66

4,269 posts

Posted by DK66 > 2020-05-02 14:22 | 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.

DK66

4,269 posts

Posted by DK66 > 2020-05-02 14:27 | Report Abuse

Same to everyone here, please ask if there is anything you want to know. I will do my best.

Aseng

8,633 posts

Posted by Aseng > 2020-05-02 14:27 | Report Abuse

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


DK66,
am I right ?

OTB

9,967 posts

Posted by OTB > 2020-05-02 14:29 | Report Abuse

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.

DK66

4,269 posts

Posted by DK66 > 2020-05-02 14:31 | Report Abuse

Dear OTB, you are welcome. No worries

---------------
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.

DK66

4,269 posts

Posted by DK66 > 2020-05-02 14:32 | Report Abuse

Aseng, I can't prove you wrong

--------------
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


DK66,
am I right ?
02/05/2020 2:27 PM

SALAM

1,006 posts

Posted by SALAM > 2020-05-02 16:56 | Report Abuse

Mr DK66, maximum What % of profit in the JV can be declared as dividend? 50%,100%?

DK66

4,269 posts

Posted by DK66 > 2020-05-02 17:33 | Report Abuse

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

firehawk

4,515 posts

Posted by firehawk > 2020-05-02 23:14 | Report Abuse

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

4,515 posts

Posted by firehawk > 2020-05-02 23:21 | Report Abuse

similarly, regardless JHDP paying or not paying dividend to JAKS, the profit reporting itself has direct impact on share price.

CT

908 posts

Posted by CT > 2020-05-02 23:34 | Report Abuse

Invest so much money not logic no return la. Sure got dividend la..

DK66

4,269 posts

Posted by DK66 > 2020-05-02 23:55 | Report Abuse

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.

firehawk

4,515 posts

Posted by firehawk > 2020-05-03 00:06 | Report Abuse

:-) :-) :-)

DK66

4,269 posts

Posted by DK66 > 2020-05-03 00:08 | Report Abuse

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.

DK66

4,269 posts

Posted by DK66 > 2020-05-03 00:16 | Report Abuse

firehawk, I wish to express my appreciation for your participation and comments in this article.

firehawk

4,515 posts

Posted by firehawk > 2020-05-03 00:24 | Report Abuse

I appreciate yr open mind in accepting comments, and the patient on entertaining the comments, salute!

OTB

9,967 posts

Posted by OTB > 2020-05-03 10:51 | Report Abuse

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.

DK66

4,269 posts

Posted by DK66 > 2020-05-03 11:06 | Report Abuse

Dear OTB, thank you

-----------------
Ans :
Your request had been sent today.
Please wait for reply.
Thank you.
03/05/2020 10:51 A

Casino123

37 posts

Posted by Casino123 > 2020-05-03 13:30 | Report Abuse

Still can buy this share or not?

DK66

4,269 posts

Posted by DK66 > 2020-05-03 13:40 | Report Abuse

Casino123, is it not wise to trust the advice of anyone in i3. The promoters will say YES. The Naysayers will say NO. You have to listen to yourself.

OTB

9,967 posts

Posted by OTB > 2020-05-03 14:07 | Report Abuse

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.

DK66

4,269 posts

Posted by DK66 > 2020-05-03 14:58 | Report Abuse

Dear OTB, thank you for the prompt reply.

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

brushsoo

50 posts

Posted by brushsoo > 2020-05-08 13:41 | Report Abuse

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?

DK66

4,269 posts

Posted by DK66 > 2020-05-09 10:27 | Report Abuse

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

brushsoo

50 posts

Posted by brushsoo > 2020-05-12 10:06 | Report Abuse

Got it, thanks DK66!

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