Sino Grandness

[Boon]

Boon,

In post #1256, you said "The circulars did not say non-cash interest expenses of CB should be added back => hence it should be deducted."

Are you sure the circular did not say that ?

In post #1258, you said "Non-cash interest expenses of CB falls under amortization." which was wrong and quoted the definition "Net Profit : With respect to a financial quarter or a financial year of the HK Issuer, the consolidated net profits of the HK Issuer and its subsidiaries after taxation, interest, depreciation and amortisation with respect to such financial quarter or year, as applicable, as confirmed by the audited accounts of the HK Issuer"

In post #1286, you referred me to "Page 44 of 04-July-2012 Circular with respect to CB1"

Since you have read until page 44, you MUST have read something on that page and the page before that contradicted what you said in post #1258 and post #1256. Why did you not point out and clarify your error in the interest of the forumers ?

What am I referring to ?

Page 44 : “Projected Net Profit” means, with respect to a financial year of the HK Issuer, the consolidated projected net profits of the HK Issuer and its subsidiaries after taxation, interest, depreciation and amortisation with respect to such financial year, as determined by the HK Issuer acting in good faith and a commercially reasonable manner. For the avoidance of doubt, costs and expenses incurred in connection with the Qualifying IPO and any extraordinary items shall not be taken into account in determining “Projected Net Profit”.

Page 43 : “Net Profit” means, with respect to a financial quarter or a financial year of the HK Issuer, the consolidated net profits of the HK Issuer and its subsidiaries after taxation, interest, depreciation and amortisation with respect to such financial quarter or year, as applicable, as confirmed by the audited accounts of the HK Issuer. For the avoidance of doubt, costs and expenses incurred in connection with the Qualifying IPO and any extraordinary items shall not be taken into account in determining “Net Profit”.

For the avoidance of doubt, costs and expenses incurred in connection with the Qualifying IPO and any extraordinary items shall not be taken into account in determining “Net Profit”.

Is the CB an extraordinary event ? YES
Are "Fair Value" AND "Non-cash interest expense" extraordinary items relating to the CBs ? YES
Should those 2 items be excluded from determining "Net Profit" ? YES

It has been stated clearly in black & white all along. Why did you omit that ?

Hi crubs,
 
Ha-ha! No wonder oldman9 is confused. Confusion is part of the learning process.
 
Are you implying that had I not reached page 44, you wouldn’t have reached there either and you would have been “misled” forever?
 
Your underlying assumptions are:
 
1) Those who have read page 44 would have drawn the same conclusion as you.
2) Those who have drawn a different conclusion would have been branded as not acting in the interests of the forumers.
 
Is the CB an extraordinary item?
 
Did the circular say CB is an extraordinary item? No. 
 
IFRS do not use the concept of an extraordinary item at all.
 
Is “non-cash interest expense” an “extraordinary item” and hence be excluded? No.
 
“Non-cash interest expense” still falls under “amortization”
 
Change in fair value of CB should be excluded? Yes and agreed. Apology for the mistake in my application.
 
So back to Group (not Listco) FY2013 number:
 
Reference net profit (Group, not Listco) = 287.7 + 43.6 = 331.3 m
 
So, what is your interpretation of the FY2013 profit figure of 153.5 m for Listco as presented in the 05-Feb-2016 circular?

I once told a buddy on this forum these:
 
If you were to agree with me, it doesn’t mean I am right, as we could both be wrong.
 
If I were to agree with you, it doesn’t mean you are right, as we could both be wrong.
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