Posted by Equityengineer > 2020-05-15 21:20 | Report Abuse

https://www.klsescreener.com/v2/news/view/677587/asset-impairment-drags-kronologi-into-loss-making-1q

Posted by Kilnel9 > 2020-05-15 21:38 | Report Abuse

GG!

Posted by apolloang > 2020-05-15 21:49 | Report Abuse

loss so much yet 62cts?

Posted by shortinvestor77 > 2020-05-15 22:10 | Report Abuse

Next quarter got impairment also?

Posted by trader9918 > 2020-05-15 22:12 | Report Abuse

During this bad time, many companies take oppotunity to booked in whatever impairment in their qtr result..and make it loss....too bad....

Posted by super_newbie > 2020-05-15 22:26 | Report Abuse

trader9918- might to share any advantages of booked in impairment?

Posted by sysz820 > 2020-05-15 22:39 | Report Abuse

Blind also can see,company and auditor play tricks on accounting,definitely will complaints on board auditor.

Posted by Investor 9999 > 2020-05-15 22:40 | Report Abuse

Krono

Out of the blue made impairment of RM11.6 mil on PPE on the EDM Managed Service. Adjusting back the impairment of RM11.6 mil, its core profit before tax is only RM511K compared the corresponding Q1 2019 of RM4.015 mil and that of the preceding Q4 2019 of RM5.112 mil.

Though a good business model, the management has never delivered the profit expected for the amount of capital employed.

The share price had continuously being played up before qtr announcement and then reported a poor result and share price went south after the qtr result.

MAIN CONCERN
I also have issue that the Auditor issued a clean report dated 30 April a clean unqualified report or expressing any reservation on valuation of PPE and 15 days later on 15 May, the Board issued a qtrly report with impairment of RM10.8 mil on PPE.

We shall hold the Auditors PKF Charted Accountant responsible if there is any audit procedure falling short or shoddy auditing work.

Either the Board of Directors looks bad in not disclosing all material subsequent events or negative development that affect the PPE that may warrant an impairment in the FY 2019 Account or the Auditors' work had been shoddy. Is the Audit Committee of the Co sleeping on this issue of concern

Those who had lost money when share price nose-dive in Krono who had used the Annual Report as a basis for judgment may want to consider avenue to sue the Board or the Auditors.

PLEASE WRITE AS MANY COMPLAINTS TO SECURITY COMISSION and AUDIT OVERSIGHT BOARD TO INVESTIGATE THIS SHORT COMINGS.

I WILL CERTAINLY FILE COMPLAIN TO THE AUDIT OVERSIGHT BOARD TO INVESTIGATE THE MATTER AND ALSO THE SC

I do not hold any Krono share

Posted by tehlah > 2020-05-15 22:52 | Report Abuse

revenue is 51.9 mil, earning before tax is 4.6 mil. But what is this one-off non-cash 11 mil depreciation ? They don't really lose any cash on this item.... Management want to utilize this time to not paying Tax is it? It is also weird that no Insider/Director selling if the result is in deed a loss? Any idea from anyone?

Posted by Maxigain > 2020-05-15 22:57 | Report Abuse

Result is no good but not so bad. This is one-time ‘Non Cash’ impairment on Property, Plant and equipment. Under accounting rules, this has to be recognized as losses. Exclude this item, company still making 4mil+ during MCO. Buy more if panic sell on Monday...

Posted by Investor 9999 > 2020-05-15 23:06 | Report Abuse

PBT exclude the impairment is RM500k and not RM4 mil

Posted by wesley_gold > 2020-05-15 23:07 | Report Abuse

Correct, impairment is a non-cash item, those study accounting background should know

Posted by wesley_gold > 2020-05-15 23:08 | Report Abuse

it does not really a loss of money to the company

Posted by fitman > 2020-05-15 23:14 | Report Abuse

result not very good but still profitable if exclude the one off impairment loss of 11m.

Posted by Ravi Kumar > 2020-05-15 23:17 | Report Abuse

People who don't understand the financials will panic sell and I am waiting to cash in on this counter again. I was buying and selling from 35 sen all the way to 60, 63 sen. Nice profit Taking impairment is not wrong.

Posted by Maxigain > May 15, 2020 10:57 PM | Report Abuse
Result is no good but not so bad. This is one-time ‘Non Cash’ impairment on Property, Plant and equipment. Under accounting rules, this has to be recognized as losses. Exclude this item, company still making 4mil+ during MCO. Buy more if panic sell on Monday...

Posted by factbasedinvestor > 2020-05-15 23:18 | Report Abuse

A company that reports impairment loss.

Imagine in these times, so many companies don't even dare to do PPE impairment reassessment lol

Posted by chl1989 > 2020-05-15 23:50 | Report Abuse

plz sell down to 30c :)

Posted by wesley_gold > 2020-05-16 00:12 | Report Abuse

The review of impairment that the company did is under accounting standard MFRS 136 in which it is an onetime, non-cash impairment of PPE, as mentioned in their press release. Hence, it is just a non-cash item to the company, and their balance sheet and cash flows is still in healthy condition.

Anyways, if u are not comfortable with this item appear in their profit or loss statement, u can just sell the shares and walk away. Thats all my opinion :)

Posted by super_newbie > 2020-05-16 00:38 | Report Abuse

Hahaa.. short-selling has been suspended till end of June, a lot of kaki goreng here wanted to scare ppls so that they can collect cheap ma lol

Agreed that the co balance sheet and cash flows is in healthy condition. Just simply does the comparison vs last year Q1 results, can found that net cash generated from operating activities of RM5.1mil compared to last year Q1 of -RM8.5mil and debt ratio is also decreasing ~6.8% even with the impairment of PPE.

Posted by super_newbie > 2020-05-16 00:45 | Report Abuse

Singapore CB started around April, let see next qr if the EDM/ cloud storage industry could get benefits from the new norm or not.

Posted by apolloang > 2020-05-16 01:02 | Report Abuse

hmmm....let me see uncle pang didn't post any negativity here? hahaha

Posted by apolloang > 2020-05-16 01:06 | Report Abuse

uncle pang why don't u say anything positive here? hahaha

Posted by YONG > 2020-05-16 01:47 | Report Abuse

LOL, Prudence Concept, no wrong at all.
Price drop~ Will the director collect more? share buyback?
Let's see~
Add in my stock watch list~ opportunity to invest in June/July.

Posted by shehaiing > 2020-05-16 01:52 | Report Abuse

Impairment of assets arise when its carrying amounts (i.e. net book value)exceeded its recoverable amount (its could be fair value/disposable value less cost to sell or value in use/economic value (estimated discounted future cash flow generated by the assets), whichever is higher). MFRS136.8. Since Krono had underwent a thorough review of the economic value of their installed infrastructure(assets), in which they found that there is indication of impairment when COVID19 had become a pandemic in March 2020 causing certain of their customers/cash generating unit facing financial difficulty which had affected their future sales/cashflow generated from these assets which also leading decrease in sales in Q12020. These impairment is reversible if there is event that cause favorable effect of these assets or increased in the value of its recoverable amount, MFRS136.111 & MFRS136.114. This is why sales in Q12020 dropped causes impairment was booked. (Disclaimer: This are just my assumptions, trade at your own risk) :P

Posted by donald770 > 2020-05-16 06:14 | Report Abuse

Thanks Investor 9999. I read the financial report n press statements deligently and based on their good prospective l bought the shares. I was the victim of their fraud. There are areas that l like u to enlighten me:1.how to write in to SC. 2.could there be collaboration of majority shareholders and auditor and punter as the shares was actively played up?
I would like Investor 9999 to help us all the way to seek justice for minority shareholders. We are very grateful.
I would appeal to all the minority shareholders to to stand up n seek our rights of protection.
We cooperated in with Investor 9999 in everyway possible.
Meanwhile prepare n gather our proof of our loss due to the their intentional misdeeds. Thanks

Posted by Investor 9999 > 2020-05-16 07:03 | Report Abuse

Go to Minority Shareholders Watch Group

Use the online complaint form and filled in you complaint

https://mswg.org.my/complaint

Posted by mf > 2020-05-16 07:16 |

Post removed.Why?

Posted by Investor 9999 > 2020-05-16 07:20 | Report Abuse

The issue we have is that the Auditors signed off the Audited Account on 30 April without any red flag and the auditors would have got the management and the Board of Directors to represent and confirm that subsequent to the financial year end at 31 Dec 2019 to 30 April 2020( the date of Auditors Report), there is no material information or adverse business development affecting the audited account which may affect Auditors opinion and make changes to the Account.

15 Days later on 15 May the Board issued Q1 2020 Qtrly announcement with RM11.6 million. impairment

Did the Board of Directors hide impairment information from the Auditors? Perhaps hearing explanation from the Audit Committee Chairman may enlighten us.

We should held the Board of Directors for lack of Corporate Governance .

All shareholders should go to Co website and sound this issue to the Co

Posted by mf > 2020-05-16 07:29 |

Post removed.Why?

Posted by Mosiong Wong > 2020-05-16 07:56 | Report Abuse

Sold jor. Haha. Run. See how long it drop this time. Shld be 45c reenter

Posted by donald770 > 2020-05-16 08:01 | Report Abuse

Thanks Investor 9999. I will write my complaint.

Posted by chl1989 > 2020-05-16 08:18 | Report Abuse

business is affected by covid but their topline still increased? make no sense

Posted by chl1989 > 2020-05-16 08:18 | Report Abuse

i hope it can go limit down to 32c

Posted by Talib > 2020-05-16 08:20 | Report Abuse

no worry.. just impairment. Monday will go 0.7 mark my words

Posted by Ratman > 2020-05-16 08:22 | Report Abuse

So many negative news here, HABIS LAH .
can’t sleep these few days ？

Posted by mf > 2020-05-16 08:33 |

Post removed.Why?

Posted by Everhappy > 2020-05-16 08:35 | Report Abuse

Buy more if drop

Posted by Maxigain > 2020-05-16 09:12 | Report Abuse

Ppl really hv to take time to study financial stmts, do some homework try to understand accounting. It’s a one off ‘Non Cash’ impairment. Moreover their Q1 is always registered lower numbers. Exclude impairment, they are doing just fine amid covid19 pandemic.

Posted by cm78my > 2020-05-16 09:34 | Report Abuse

鯊魚先小殺一輪，然後你們自己大殺一輪，它才慢慢吃回去。。如果這樣希望大家要習慣咯。。股市就是這樣大欺負小世界，除非小的聯合起來咯，話說這可能嗎。祝大家往後賺大錢成為大鯊魚咯

Posted by Frank Tan > 2020-05-16 09:53 | Report Abuse

最要命的-Revenue比上两季差，profit也肯定差。
加IP loss 更loss。
想想下季应该更差吧。。。cut loss啦

Posted by RainT > 2020-05-16 10:29 | Report Abuse

Cost of sales increase

so GP margin is drop

add with impairment loss on PPE then is loss making quarter

Posted by RainT > 2020-05-16 10:30 | Report Abuse

seem this one is change of fundamental of KRONO from good to bad ?

Posted by RainT > 2020-05-16 10:32 | Report Abuse

for the impairment of PPE shall be one off item & future quarters likely not to be repeated again


but the increase of cost of sales, this part is make me worry

Posted by buneh97 > 2020-05-16 10:41 | Report Abuse

suddenly here so many people comment

Posted by RainT > 2020-05-16 10:42 | Report Abuse

KRONO management now take this crisis timing do kitchen sinking ?

to charge all provision, impairments in this quarter as if good result also share price will not up much due to bad sentiment , then why dont throw out all bad things into account and

coming quarter when situation get better, profit steady up

Posted by Kelvinvest Research > 2020-05-16 12:22 | Report Abuse

Monday open should be 50sen
I got a huge cushion to play with you guys.

Posted by vignesh85 > 2020-05-16 12:44 | Report Abuse

Look at it rationally. apart from impairment (which is one off and does not involve cash), the company manage to report profit on its operating profit. How many companies could report profit during this pandemic? a profit is a profit.
The share price came down from a high of 0.9 cents to 0.3 cents factoring this weak quarter. the stock price will always reflect what is ahead. Next quarter if the company can even report RM1m net profit (which they should easily be able to do), just ponder what the growth numbers will look like. I believe the management is putting this trajectory when they decided to factor the impairment. Future growth numbers.

Posted by mrstrong > 2020-05-16 12:49 | Report Abuse

Management put all bad news come out first, and then SBB :D
Short term players will sell, long term players will collect more at lower prices.

Posted by mrstrong > 2020-05-16 12:56 | Report Abuse

gross profit margin declined as the group supported our valued customers in meeting their requirements for several projects during this challenging period. Higher costs of sales caused by, amongst others, global supply chain and logistical disruptions.

Higher costs of sales caused by covide19 maybe one or two quarters, but Cloud business still a big trend in the future, and traditional business will transform.

Posted by stock_investor > 2020-05-16 13:26 | Report Abuse

Profit so sux plus impairment. Combo effect. Limit down , bro.