Posted by firehawk > 2020-05-02 11:05 | Report Abuse

DK66, Tq for yr article. Refer to below statement from yr article,

CPECC can only convert the RCPS into voting shares 3 years after commercial operation of the power plant to gain 70% control of JPP. For now, CPECC and Jaks have equal control over JHDP.


Is this mean that 3 yrs immediate following COD (not beyond 3 yrs after COD), CPECC and Jaks both have 50% equity in JHDP?

How about the profit sharing? also shared equally within the 3 year after COD?

Posted by DK66 > 2020-05-02 11:10 | Report Abuse

firehawk, you are welcome

NO, CPECC get 70% of the profit NOW

Posted by DK66 > 2020-05-02 11:11 | Report Abuse

Is this mean that 3 yrs immediate following COD (not beyond 3 yrs after COD), CPECC and Jaks both have 50% equity in JHDP? - YES, equal voting rights

Posted by firehawk > 2020-05-02 11:16 | Report Abuse

How about 3 years immediate from COD?

Posted by DK66 > 2020-05-02 11:17 | Report Abuse

Sorry, I m not sure what you mean

------------------
firehawk How about 3 years immediate from COD?
02/05/2020 11:16 AM

Posted by firehawk > 2020-05-02 11:20 | Report Abuse

Sorry for making u confuse, the question should be,

How about the profit sharing of 3 years immediate from COD?

---------------------------------------
firehawk, you are welcome

NO, CPECC get 70% of the profit NOW

Posted by DK66 > 2020-05-02 11:22 | Report Abuse

firehawk, cpecc gets 70% of profit immediately after COD

Posted by firehawk > 2020-05-02 11:31 | Report Abuse

Tq.
So, the profit sharing is not distributed according to the ownership at this period?

------------------------------------------------------
Posted by DK66 > May 2, 2020 11:22 AM | Report Abuse

firehawk, cpecc gets 70% of profit immediately after COD

Posted by DK66 > 2020-05-02 11:35 | Report Abuse

firehawk, you are welcome

Yes, this is because the RCPS gives CPECC extra 20% economic interests

Posted by firehawk > 2020-05-02 11:46 | 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 .....

Posted by DK66 > 2020-05-02 12:06 | Report Abuse

firehawk, you brought up a good point. Let me double check.

Posted by newbie8080 > 2020-05-02 12:10 | Report Abuse

Referring to the statement of the conversion period, it seems more beneficial and possible for CPECC to request to retain profit at JPP level from COD(06/2020) + 3 years(06/2023) and to distribute it after 06/2023 for it's 70% portion rather than 50% currently.

Posted by newbie8080 > 2020-05-02 12:11 | Report Abuse

Good to know

Posted by DK66 > 2020-05-02 12:13 | Report Abuse

newbie8080, CPECC is immediately entitled to 70% dividend after COD.

Posted by VIN3133 > 2020-05-02 12:13 | Report Abuse

Haha , it looks like bro firehawk is so confused . Probably he needs some basic company law knowledge to understand . I suggest he does some googling to understand what is share ownership and what is board of directors .
Bro DK66 , you are so very patient up to the extent that you do not know how to explain further ! You are great !!

Posted by DK66 > 2020-05-02 12:17 | Report Abuse

VIN3133, firehawk has a point. CPECC may be entitled to 70% of the dividend but may only book 50% of the share of profit.

Posted by DK66 > 2020-05-02 12:19 | Report Abuse

While I will research further, I would like to request Mr OTB to seek clarification from Jaks management if possible.

Posted by newbie8080 > 2020-05-02 12:23 | Report Abuse

@DK66

It reads as after 3 years expiry from COD date.

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

That is why Jaks is able to exercise the additional 10% ownership in the COD + 3 years period.

Posted by DK66 > 2020-05-02 12:30 | Report Abuse

newbie8080, please refer to Ranking of Rcps

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

Fair deal for both CPECC and Jaks

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

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.

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.

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

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

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

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

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.

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 ....

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

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

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

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

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

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.

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

Aseng, really appreciate your kind words.

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

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 ?

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

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)

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.

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.

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

OTB, appreciate your kind effort

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

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.

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

Post removed.Why?

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

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

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.

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 :))

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

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.

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.

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 ?

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.

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.