Yongnam

(02-03-2015, 11:37 AM)CityFarmer Wrote: Yongnam is a good reference for TTJ's research...

Yongnam ends 2014 with $8.5 million loss, eyes $1.1 billion of new projects

SINGAPORE (March 1): Yongnam Holdings ( Financial Dashboard) sank into the red in 2014, hurt by a slow start in new projects and provisions in anticipation of lower variation orders for certain jobs.
...
http://www.theedgemarkets.com/sg/article...w-projects

Well, in business one has to be able to chew and swallow what one takes in the mouth. It is as simple as that! If a company takes on a wrong business deal or a risk that is too big, it would likely lead to big trouble!

(02-03-2015, 11:47 PM)dydx Wrote:

(02-03-2015, 11:37 AM)CityFarmer Wrote: Yongnam is a good reference for TTJ's research...

Yongnam ends 2014 with $8.5 million loss, eyes $1.1 billion of new projects

SINGAPORE (March 1): Yongnam Holdings ( Financial Dashboard) sank into the red in 2014, hurt by a slow start in new projects and provisions in anticipation of lower variation orders for certain jobs.
...
http://www.theedgemarkets.com/sg/article...w-projects

Well, in business one has to be able to chew and swallow what one takes in the mouth. It is as simple as that! If a company takes on a wrong business deal or a risk that is too big, it would likely lead to big trouble!

I concur.

The company strategy has proven the merit of TTJ management's strategy i.e. be prudent on contract-bidding.

I was reading Yongnam 2014 AR with interest as I am vested in TTJ.
The AR link is here

Naturally as a number guy (but not Accounting trained), I drill deeper into the Financial Statements.
In there, I was rather fascinated and confused by the BS & CF:

A case in point:
From Page 42, BS:
2013 - Trade payables & Other Payables= 57,453+11,348 = 68,801
2014 - Trade payables & Other Payables= 56,288+11,240 = 67,528

Page 44, Cashflow:
Decrease in trade and other payables= -1,241
This is balance, as 67528-68,801 is about -1,273

Using the same method, I move on to AR:
2013 - Trade receivables & Other Receivables= 35,684+5,395 = 41,079
2014 - Trade receivables & Other Receivables= 27,657+50,323 = 77,980

Page 44, Cashflow:
Decrease in trade and other receivables= 13,252.

However, from rough calculation, the receivables actually increased by 36,901.

Another case:
Page 64, Gain on disposal of PPE: 32,678
Page 44, Cashflow: Proceeds from disposal of PPE: 18,580
So it's weird, because in this case, proceed is lesser than the gain?

My guess is the 2 cases are related and knock off each other.
Not sure if this is another way of reflecting the Cashflow.

<not vested in Yongnam, vested in TTJ>
Just curious and keen to improve my Accounting knowledge.

Yongnam announced announcement relating to adjustments to the unaudited financial statements for the financial year ended 31 December 2015 for information.

Doesn't looks good on their finance team capability.

http://yongnam.listedcompany.com/news.html/id/515890

http://yongnam.listedcompany.com/newsroo...EOBC.4.pdf

(21-03-2016, 07:44 PM)butcher Wrote: Yongnam announced announcement relating to adjustments to the unaudited financial statements for the financial year ended 31 December 2015 for information.

Doesn't looks good on their finance team capability.

http://yongnam.listedcompany.com/news.html/id/515890

http://yongnam.listedcompany.com/newsroo...EOBC.4.pdf

Agreed. The adjustments concerned the Singapore Sports Hub project (completed some time ago) and involved an amount of $10.997m on both Revenue and Gross amount due from customers for contract work-in-progress. It appears that the additional provisions amount had to be made now because the customer (likely the main contractor for the Singapore Sports Hub) would not admit for payment certain construction variation orders completed and claimed by Yongnam, and Yongnam could not do much about it, as it had chosen not to take legal action including arbitration.


It appears that Yongnam encountered serious problems in the Singapore Sports Hub project, and its senior management/BOD had not applied enough financial and accounting prudence until now.

To me, Yongnam's problems also include its huge PPE of $307.41m (as at 31Dec15), including especially steel beans and columns amounting to $249.668m (NBV as at 31Dec14, as reflected in the FY14 AR), which amount is still substantially financed by borrowings and trade creditors. If unused, steel beans and columns are like scraps kept in the storage yard.

(21-03-2016, 07:44 PM)butcher Wrote: Yongnam announced announcement relating to adjustments to the unaudited financial statements for the financial year ended 31 December 2015 for information.

Doesn't looks good on their finance team capability.

http://yongnam.listedcompany.com/news.html/id/515890

http://yongnam.listedcompany.com/newsroo...EOBC.4.pdf

Being working in the finance department (not in Yongnam), I would have disagree that significant audit adjustment evidences a weak finance team. Such post year end adjustment relates to accounting estimates which different people may have different view. Sometime I have the opinion that the auditors are at the wrong side, but for the sake of getting a clean audit report, you just need to follow their figures.

I have read probably hundreds of AR. I would say is pretty rare we have such change in impact level.
So i would think most finance maybe know what not to breach ? Do you era on the side of cautions.

(22-03-2016, 02:11 PM)corydorus Wrote: I have read probably hundreds of AR. I would say is pretty rare we have such change in impact level.
So i would think most finance maybe know what not to breach ? Do you era on the side of cautions.

Adjustments are not uncommon, especially for non-audited report. The adjustments are usually done in audited ARs, without further notice, based on my experience. Restatement can also be done, for ARs too, thus sometime, we are seeing slightly different number across ARs for similar financial year.

(not vested)

(22-03-2016, 01:35 PM)valuebuddies Wrote:

(21-03-2016, 07:44 PM)butcher Wrote: Yongnam announced announcement relating to adjustments to the unaudited financial statements for the financial year ended 31 December 2015 for information.

Doesn't looks good on their finance team capability.

http://yongnam.listedcompany.com/news.html/id/515890

http://yongnam.listedcompany.com/newsroo...EOBC.4.pdf

Being working in the finance department (not in Yongnam), I would have disagree that significant audit adjustment evidences a weak finance team. Such post year end adjustment relates to accounting estimates which different people may have different view. Sometime I have the opinion that the auditors are at the wrong side, but for the sake of getting a clean audit report, you just need to follow their figures.

Agreed Valuebuddies.  Their auditors, EY also at fault.  But they are safe as the adjustments have been made.

1 for 2 right issue @ an issue price of S$0.21

Yongnam Holdings Limited wishes to announce that the Company is proposing to undertake a renounceable partially-underwritten rights issue of up to 161,026,441 new ordinary shares in the capital of the Company, at an issue price of S$0.21 for each Rights Share, on the basis of one (1) Rights Share for every two (2) existing ordinary shares in the capital of the Company.

http://infopub.sgx.com/FileOpen/YHL-Anno...eID=407473