Thursday 28 Mar 2024
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KUALA LUMPUR: China Stationery Ltd (CSL) had submitted an application to Bursa Malaysia for a waiver to submit a regularisation plan and upliftment from being a Practice Note 17 (PN17) company after the stationery maker recorded three consecutive quarters of net profit.

In a statement yesterday, CSL, which fell into PN17 in July last year, posted net profit of RM16.1 million for the fourth quarter ended Dec 31, 2014; RM9.41 million for the first quarter ended March 31; and RM6.15 million for the second quarter ended June 30, 2015.

According to the Bursa Malaysia’s “Practice Note 17 Criteria and Obligations of PN 17 Issuers”, the PN 17 issuer must be able to record a net profit or positive operating cash flow in two consecutive quarters immediately after the completion of the implementation of the regularisation plan.

On the company’s developments, CSL chief executive officer and executive chairman Chan Fung @ Kwan Wing Yin said, “We are back to normal operations since May, and the group is in the process of winning back its old clients,” he added.

CSL said it was classified as an affected listed issuer on July 8, 2014 due to the issuance of the disclaimer of opinion for its financial statements for FY2013 by its external auditors Messrs RT LLP following the fire incident, not because of the losses for many consecutive quarters.

The auditors, however, had on Jan 15 this year completed its special audit on the financial accounts for the nine months financial period ended Sept 30, 2014 and found that the net loss was 16.7% lower at 330.95 million yuan (RM224.87million) versus 396.72 million yuan.

The deviation was due to the recognition of deferred tax assets from losses of 128.29 million yuan from the company’s indirect wholly-owned subsidiaries. 

 

This article first appeared in digitaledge Daily, on September 8, 2015.

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