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2018 AGM

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TEK SENG HOLDINGS BERHAD

(Company No. 579572-M)

(Incorporated in Malaysia)

SUMMARY OF KEY MATTERS DISCUSSED AT THE 16TH ANNUAL GENERAL MEETING OF TEK SENG HOLDINGS BERHAD (“TEK SENG” OR “THE COMPANY”) HELD AT LAUREL II BALLROOM, LEVEL 1, EVERGREEN LAUREL HOTEL, 53 PERSIARAN GURNEY, 10250 PENANG ON FRIDAY, 08 JUNE 2018 AT 9.30 A.M.

SUMMARY OF KEY MATTERS DISCUSSED

Mr. KJ. from Maybank Nominees posted the following questions on the financial statements to the Board:-

1)

On Page 47 of the Annual Report, he noted that RM2.98 million of inventories were written down and he wanted to know why and which company the said inventories were written from.

The management explained that these were inventories written down from the Group’s solar division – TS Solartech Sdn. Bhd.

 

 

2)

A shareholder noted that approximately RM40.00 million PPE was disposed of during the year and wanted to know why.

The management explained that one line in the solar division had ceased operations during the year and the PPE was sold back at the net book value. Currently the solar division is running but at a loss as currently, the cost of production of 1 watt is higher than the selling price per watt of between 15 sen and 18 sen.

 

 

3)

On the inventories as at year end amounting to RM55.61 million, the shareholder wanted to know the majority of the inventories.

The management said that the majority of the inventories for the solar division.

 

 

4)

The shareholder wanted to know what are the “Other Payables” reflected in the Trade & Other Payable on the Balance Sheet as at year end.

The Management informed the shareholder that the “Other Payables” were for amounts for maintenance of machineries and spare parts.

 

 

5)

On Other Operating Income, shareholder wanted to know whether the compensation income will cease next year.

The management confirmed this will cease next year after the cessation of the contract between TS Solartech Sdn. Bhd. and a customer.

 

 

6)

The shareholder wanted to know whether the case with TNB has been settled.

The management replied that the case had been postponed on 25 June 2018.

 

 

7)

Another shareholder expressed concern whether the Company will be able to pay its shareholders dividends in the next financial if its solar division continue to incur losses.

The management replied that Q2-2018 is about to be completed and it is too early to tell whether there will be dividends for the financial year 2018. However, the management assured shareholders that if profits are made, dividend will be payable.

 

 

8)

The shareholder also wanted to know that since the Group’s profits had dropped, why is the Company advocating for an increase in directors’ fees.

The management informed shareholders that the Company is proposing only a 5% increase in directors’ fees this year, subject to shareholders’ approval at this AGM.