In relation to the above, the Board has agreed to classify certain non-current assets totalling RM222.14 million to assets held for sale under the current assets effective from February 2018. The classification will temporary address the net current liabilities issue pending the disposal of the assets. Once the disposal is successful, it will resolve the material uncertainty related to going concern.
Last paragraph today announcement. 222million asset for sales which higher than market cap now 153million...if after sell asset will become net cash company which may reward shareholders with dividend
taitaumau, this news already out and the Auditors proceedings already give their findings from the audits done.
In fact, YKGI issue is they can't contained the increasing price of the raw materials which took huge part of their company profits. This is concern.
Good news is their inventories balance of 98 and 63 mil are still in the warehouse and it's good they could sell it off when market price for raw material improves.
What are they looking ahead for now. dispose their none current assets which means assets that will be intangible and need to hold for a certain period.
They are doing/ have done:- The Company had on 19thMarch 2018 announced that it has entered into Mutual Confidentiality Agreements with two (2) parties namely CSC Steel Holdings Berhad and NS BlueScope Malaysia Sdn Bhd (“NSBM”)with a view of disposing certain assets (“Proposed Transaction”). Currently, NSBMis conducting a due diligence on the Proposed Transaction; and (iii)In relation to the above, the Board has agreed to classify certain non-current assetstotalling RM222.14million to assets held for sale under the current assetseffective from February 2018. The classification will temporary address the net current liabilities issue pending the disposal of the assets.
KEY-POINT:- Once the disposal is successful, it will resolve the material uncertainty related to going concern.
Every companies have their challenges. They're taking actions by disposing their assets to offset their net liabilities. This way, they will have surplus from the assets.
is this a good news or a bad news? sitia and easyinvest123, can u guys explain more regarding on this announcement, just to clarify and give a clear image to the public and investors like me, thanks.
Hoe Weng, if you look back YKGI last year from Feb until Dec, 2017 chart pattern , what do you learn? It was the beginning pain of the company. With escalates price of raw materials , the company is losing businesses hence losing their business profits even with businesses coming in. Their main problem is their business cannot control the raw materials pricing.
Secondly, why the price this year can rose from 16 cents to 43 cents as of yesterday???
I see the news of yesterday was indeed a good news. Once they dispose of their irrelevant businesses and non current assets, they will be free from in debt ness. This provide them a capital to venture into other businesses. YKGI, have been established since 1990s. So to say, there will be good revenues for them.
YKGI is just one of many companies who suffered the fate of keeping up with the fast moving industry pace. Nothing to brag again their losses.
Just relax. This company TA is showing you why the shares are bought higher price. I believed big giants like CSCSTEEL acquiring YKGI CAN GO THROUGH.
I agree YKGI disposal off asset else it produce losses which eat into shareholders fund. By disposal asset will be solve cash flow issue and revealed intrinsic value of company
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Angel of KLSE 大马股仙
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Posted by Angel of KLSE 大马股仙 > 2018-04-13 19:35 | Report Abuse
oh no, you mean pump and dump?