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Prices quoted for consumer electronics products by China companies are already lower than our EMS companies “cost”. Once previous long term OEM contracts due for price re-negotiations, it will be cost down & margin compression (if any).
Gerbilg-I also strongly suspect corporate fraud, also related to financial data integrity. What the hell in business write off 250mil in one lump sum? What if External auditor suspect the financial integrity and raise concern on the business ethic? Same case like SD? ……????
Green LT agreed. I still remember a lot of YouTubers cover it as well as some gurus, share that they have a lot of business from B*W etc… after the share hit all time high, suddenly they all seems know how to sell all right around at the top. It was a 10 baggers back then..
As what Sifus Cheng & Adama correctly pointed out, “China has a death touch instead of midas touch. So whatever industry they touch, u run like hell” ie. “VENI VIDI VICI “
Jaredgwee，Yes, the Chinese government wants certain industries in its own hands, not because these industries are highly profitable, but because they are essential to the country's national strategy.
When they begin to make massive deployments in certain sectors, a large amount of capital floods into these industries. Then, in an effort to grab market share, they drastically drive down prices. The result is often that these industries become severely damaged, leading to a sharp drop in the overall profit margin for the entire sector.
as investor , we better run when we see them coming.
Restia, I had been search and read a lot article regarding China massive invest in semiconductors sector... Power of 红色革命, Malaysia semiconductors is half water mostly focus on semiconductors packaging and testing only, China is full set full throttle another 3-5 yrs 3-5nm massive production nvidia, Intel, tsmc, AMD all GG
I am not sifu, Daniel. Just sharing opinions and learning from others. Mygg and ptrans abang adik rolling in the deep style, Adama. It's legal to do so :)
Of course no cask losses because cash accounting is not permitted in public listed companies. If a bank made RM 100m profit, it doesn't mean they gain RM100m cash. All entries are based on accrual accounting. A loss is a loss in the. A profit is a a profit. One must know how to differentiate between a profit and loss statement and a cash flow statement.
Stock holdings still high at 136 days despite the huge RM250m impairments. Will a further impairment of inventories be required by the external auditors for Financial Year Ending 31/12/2025 ?
The RM250m inventories impairment in one quarter is definitely staggering in relation to the quarterly revenue, profitability and total inventories. Explanations in B1 as stated in the QR insufficient as the exact reasons (eg. loss of major customers orders, quality issue, over production etc.) ought to be disclosed in view of such significant amount involved.
Exactly. In real terms, it is still a significant loss. If these inventories need not be impaired, they can be sold off and the profit (cash) derived can be cash dividends to shareholders. Just like impairment on receivables (bad debts).
just wondering any shareholder that has been following its quarterly performance over the last one to two years? any findings of inventories creeping up while revenue drop that could have led to the impairment this qtr? And another element to watch for is receivables. revenue dropped >> more than receivables - slower collection of receivables and could ended up with ECL/impairment in the future too.
Let’s not speculate but leave it to the external auditors to verify accordingly. Audit process (interim) for FYE might already be in progress and will definitely be Key Audit Matters (Inventories & Impairments) to be addressed by the external auditors accordingly.
@GreenLT 你说得对。相信是有意隱瞞
This kind of problem has long been a Bursa issue. It doesn't happen today. Normally manufacturing companies are taking advantage of this loophole in the law whereby they are not obligated to do impairment evaluation each year. I think Bursa Malaysia should come out with a better measure to protect the small shareholders.
Still Cash rich company , write off only on paper , which the inventory impossible make money for company , 0.92 still can hold it , wait it bound back
I think if Bursa interfere and control the trading market, KLCI would not be a free market, foreign investor would not like it, bursa stock price would drop as well. I think we dont be inspector 1st, let the market do the job, eventhough there is a fraud, the time external auditor check it and acknowledge is already too late, right?
If it is patent infringement, inventory write-off is just the beginning. Raises lots of questions moving forward - (1) what is the breakdown of the receivables account for the disputed products? It will most likely be impaired. (2) any impact to the revenue revognised previously which may have to be reversed back? (3) what is the revenue contribution for the disputed products on the total revenue? That will be the future revenue loss unless D&O can replace it with other products?
This is serious if the inventories impairment is due to patent infringement by Dominant Opto Technologies Sdn. Bhd. (Subsidiary of D&O). However, patent infringement or legal claims will need to be announced via BursaLink.
As a bursa retailer, we dont need to guess what really happened because we will always be the last one to know the facts. So just stay away from those strong downtrend stocks. It will save u a lot of headache if u follow this rule in your investment decision.
Why is that so? Because money does not lie, people do. Hence the market always know more than u do. Someone out there always know something u dont.
Good advice, AA. Avoid all speculative counters or “red flags” counters. Also, need to scrutinise all the relevant QR figures in P&L (Sales & COGS) and Balance Sheet (Inventories, Receivables, Other Receivables, Borrowings etc.) for any”red flags” indicators prior to buying any shares :-)
Cheng-it means company R&D “Jia Sai”, copy Nichia product design. This reflect company don’t have expertise and leading tech in automotive intense competition. Sooner, company will loosing ground and serious deterioration in business performance. A pathetic ending for D&O.
Follow accounting standard, management SHOULD periodically allocate “inventory depreciation value” to report in P&L. This is prevent the “time bomb” explode. Either management is “sleeping” or “hiding” for shareholder, the internal auditor also “diam-diam”.
more to clarity though damage has been done, green. if it is true that its patents infringement, the disputed products line-up will never make it to the market anymore in the future; in countries covered by Nichia's patents. D&O has to release its own products or pay royalties to Nichia to use their patented products/solutions.
All of you must be gipile students. This so hai chen recommend stock almost all will die hard. Love your money and stay away. You pay them money this so hai chen will not die but all followers will
Seems to have lots of "guru" in Malaysia? Must be earning lots of fees from students. Lucrative business. Wondering whether the students check the credentials of these gurus first?
Can refer to the link below and news published by Nichia on 7th May. Extracted some of the details from the news - The settlement fully confirms Nichia's patent infringement claims in relation to the Dominant LEDs, namely to cease the sales in Germany, France, Italy and the Netherlands, to recall and destruct the products, to provide information and rendering account, and to compensate Nichia for damages. Nichia also holds family patents of EP2323178 in the following countries:
Japan, U.S., Germany, U.K., France, Italy, Netherlands, China, India, Taiwan, and Korea https://www.nichia.co.jp/en/newsroom/patent.html
funds/insti selling as mentioned by Daniel. and lots of unanswered questions with regards to the patents infringement - receivables, the disputed products spice and nagajo series' contribution to the overall revenue. What's next if the disputed products are top selling products - stop selling products and revenue plunge or pay royalties to Nichia to continue selling the products?