Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Nov 27): After registering three consecutive quarters of net profit on a consolidated basis, integrated plastic stationery company China Stationery Ltd (CSL) will no longer be a Practice Note 17 (PN17) company.

It announced on Bursa Malaysia yesterday that its PN17 status will be uplifted from 9am today, after the bourse regulator granted it a waiver from having to submit a regularisation plan — as is required by a PN17 company — vide a letter dated yesterday.

“The upliftment was approved after the company recorded net profits for three consecutive quarters,” CSL said in a separate statement. 

CSL reported a net profit of RM9.41 million in its first quarter ended March 31, 2015 (1QFY15), compared with RM29.03 million in 1QFY14. It saw a net profit of RM6.15 million in 2QFY15, reversing a net loss of RM241.09 million in 2QFY14. In the latest 3QFY15, its net profit came in at RM21.88 million, versus RM39.96 million in 3QFY14.

CSL chief executive officer and executive chairman Chan Fung @ Kwan Wing Yin said the upliftment is expected to put the group on a much stronger footing to regain investors’ confidence in the group’s prospects. 

“We will improve the quality of our products and expand the product range through in-house research and development. On top of that, we will  widen our distributorship in China and penetrate new markets,” he added.

CSL was classified as an affected listed issuer on July 8 last year, after its external auditor RT LLP issued a disclaimer of opinion on its FY13 financial statement, as it was not able to obtain sufficient appropriate audit evidence — due to some records being destroyed in a fire incident at one of its plants in China — to provide a basis for an audit opinion.

Then on Jan 15, 2015, the auditors completed its special audit on the company's financials — as well as its subsidiaries — for the nine months ended Sept 30, 2014 (9MFY14). The audited report showed CSL's audited net loss for 9MFY14 was actually lower at RMB330.59 million, than its previously announced net loss of RMB396.72 million, said CSL yesterday. 

The deviation, noted CSL, was due to the recognition of deferred tax assets from losses of RMB128.29 million from the company’s indirect wholly owned subsidiaries, namely Sakura (Fujian) Plastics Enterprise Co Ltd and Sakura (Fujian) Packaging & Stationery Co Ltd. 

“The deviation was also reconciled with a provision for doubtful debts of RMB60.36 million for debts exceeding 90 days in the Company’s indirect wholly owned subsidiary namely Ruiyuan (Fujian) Enterprise Co Ltd,” CSL added.

CSL's shares closed up 1 sen or 7.69% yesterday at 14 sen, valuing the company at RM172.59 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations)

      Print
      Text Size
      Share