New Toyo

(27-02-2012, 10:38 AM)cif5000 Wrote:

(27-02-2012, 10:03 AM)Curiousparty Wrote: Any operating profit generated by SAH will go to SWP wef 30 June 2010.
This was clearly stated in the earlier sales agreements....

Pardon my ignorance. May I know which agreement?

Allocation of Profit and Loss: Pursuant to the SWP Agreement, within 10 days of the SWP
Closing Date, the profit and loss of the SWP Target Companies during the period
commencing on the Accounts Date up to the SWP Closing Date (the “Transitional Period”)
will be audited by an auditing organisation with securities practice qualification in China and
reported on (the “Audit Report”). SACPL and SWP have agreed that SACPL shall reimburse
SWP in cash for any decrease in the net assets of the SWP Equity Interests during the
Transitional Period as reflected in the Audit Report according to the respective percentages
of equity interests in the SWP Target Companies held by SWP.

(27-02-2012, 07:38 PM)Curiousparty Wrote:

(27-02-2012, 10:38 AM)cif5000 Wrote:

(27-02-2012, 10:03 AM)Curiousparty Wrote: Any operating profit generated by SAH will go to SWP wef 30 June 2010.
This was clearly stated in the earlier sales agreements....

Pardon my ignorance. May I know which agreement?

Allocation of Profit and Loss: Pursuant to the SWP Agreement, within 10 days of the SWP
Closing Date, the profit and loss of the SWP Target Companies during the period
commencing on the Accounts Date up to the SWP Closing Date (the “Transitional Period”)
will be audited by an auditing organisation with securities practice qualification in China and
reported on (the “Audit Report”). SACPL and SWP have agreed that SACPL shall reimburse
SWP in cash for any decrease in the net assets of the SWP Equity Interests during the
Transitional Period as reflected in the Audit Report according to the respective percentages
of equity interests in the SWP Target Companies held by SWP.

I know you are right but that announcement by SAH didn't mention anything about the profits. Only the shortfall. In fact I couldnt find anything on profits going to SWP except thru SWP announcement. I just wonder where when SAH announced this important piece of puzzle...

CIF 5000

If I may add.
SWP is paying RMB 750m for 75% of the aluminium business. GTPL is paying S$50m for the remaining 25% and the entire stake of the cigarette carton printing business. These prices have been fixed; and the good profit of RMB 146m from aluminium business in 2011 would not accrue to Shanghai Asia.
The results announcement of Shanghai Asia provides information on the continuing operations and the discontinued operations. Shareholders of Shanghai Asia have claims only on the continuing operations. Overheads incurred by the continuing operations are eroding the amount that is ultimately distributed to shareholders.

CIF 5000

If I may add.
SWP is paying RMB 750m for 75% of the aluminium business. GTPL is paying S$50m for the remaining 25% and the entire stake of the cigarette carton printing business. These prices have been fixed; and the good profit of RMB 146m from aluminium business in 2011 would not accrue to Shanghai Asia.
The results announcement of Shanghai Asia provides information on the continuing operations and the discontinued operations. Shareholders of Shanghai Asia have claims only on the continuing operations. Overheads incurred by the continuing operations are eroding the amount that is ultimately distributed to shareholders.

(28-02-2012, 09:13 AM)portuser Wrote: The results announcement of Shanghai Asia provides information on the continuing operations and the discontinued operations.

Thanks. I looked at SACPL results and that reconciles everything. I just wonder if there is an easier way.

There are reasons for me to be confused. That's entirely due to my poor understanding on the financial statements. No excuse.

Can someone following SAH and NTI tell me why it is (in)appropriate for NTI to recognize the "Share of profit of associate"? That's 8.9m out of the 28.9m PBT.

It would appear that the external auditors have no problem with New Toyo recognising its share of Shanghai Asia's profit, notwithstanding the impending asset sale.
By the way, Shanghai Asia contributed around $8m to the "Share of profit of associates"; the remaining $0.9 m came from the other two (or three) associated companies.
I have disregarded this $8 m in assessing the investment merits of New Toyo.

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It would appear that the external auditors have no problem with New Toyo recognising its share of Shanghai Asia's profit, notwithstanding the impending asset sale.
By the way, Shanghai Asia contributed around $8m to the "Share of profit of associates"; the remaining $0.9 m came from the other two (or three) associated companies.
I have disregarded this $8 m in assessing the investment merits of New Toyo.

Someone bought SAH at 18.9 cents ... Hope he does not regret ... Not much upside potential for SAH becos it is a sunken cause . Max returns is capped at 19.6 cents ballpark

wonder when the final approval for the SAH businesses come. Toyo will be stuck at this level until the sale is finalize.
Its been a long time

Fair enough. That has been the trend that I noted. Unless there are people who think new toyo is still a great value play and hold on to the stocks.