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Nam Cheong
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luckyguy3
Master |
17-Mar-2024 20:43
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100-1 consolidation means the share price is equivalent to $0.0016 b4 this suspension right?
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Joelton
Supreme |
17-Mar-2024 18:28
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Nam Cheong continues to fall post-share consolidation shares are down 40.3%
SHARES of mainboard-listed Nam Cheong : 1MZ -50.75% continued to tumble on Friday (Mar 15), its second day of trading following a four-year suspension, share consolidation and capital reorganisation.
The counter dropped to a low of S$0.20 in afternoon trade, down about S$0.14 from its closing price of S$0.335 on Thursday &ndash the day its shares resumed trading on the Singapore Exchange.
On Thursday, the Malaysian offshore support vessel builder said its 100-to-1 share consolidation and capital reorganisation took effect on Monday.
The company proposed the share consolidation in October 2023 as part of plans to improve its capital structure and facilitate its restructuring.
Nam Cheong&rsquo s board voluntarily suspended share trading in April 2020, because it was unable to reasonably assess the company&rsquo s financial position and demonstrate that it could continue as a going concern.
It has been restructuring its trade payables since 2017. Its total trade payables had fallen from RM1.074 billion (S$305.1 million) to RM184.3 million as at Dec 31, 2021.
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Joelton
Supreme |
02-Mar-2024 14:04
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Nam Cheong doubles net profit to RM147.4 mil in FY2023, revenue surpasses RM400 mil for the first time since 2015
Nam Cheong has more than doubled its net profit for FY2023 to RM147.4 million ($41.69 million), compared to FY2022&rsquo s RM67.9 million.
This follows 30% higher revenue y-o-y of RM475.3 million from its vessel chartering business, which was driven by improved daily charter rates.
Correspondingly, gross profit grew by 67% yoy to RM168.6 million, with gross profit margin increasing by 8 percentage points to 35.5%.
Other income rose 33% y-o-y to RM85.3 million for FY2023, mainly attributable to the reversal of inventories written down and the increase in net foreign exchange gain of RM31.2 million and RM6.3 million respectively.
This impact was partially offset by the absence of a gain on waiver of debts by trade and financial creditors.
Finance costs grew modestly by 8% y-o-y to RM27.9 million due to the increased vessel financing related expenses.
Nam Cheong CEO Leong Seng Keat says 2023 marks another year of growth for the group, reflecting notable milestones reached in its restructuring journey.
&ldquo We are delighted to see the revenue crossing the RM400 million mark for the first time since the prolonged business downturn since 2015. The consistent improvement in our business fundamentals underpins the group&rsquo s momentum towards its gradual recovery.
&ldquo The group has obtained the approval for the new NCL scheme from the High Court of Malaya towards the end of 2023 and thereafter received shareholders&rsquo approval for the proposed corporate restructuring exercise at the special general meeting convened today. The above two milestones are crucial for the conclusion of the restructuring process and the resumption of shares trading,&rdquo he adds.
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Joelton
Supreme |
26-May-2022 12:05
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Nam Cheong defends board composition as SGX-ST queries Code non-compliance
MALAYSIAN offshore support vessel builder Nam Cheong defended its board composition on Wednesday (May 25) when asked why it had not ensured that its independent directors (IDs) make up a majority of the Board where its chairman is not independent.
In response to the Singapore Exchange Securities Trading&rsquo s (SGX-ST) query, the company said it is of the view that a board&rsquo s size &ldquo should not be determined solely and arbitrarily&rdquo on the basis stated under Provision 2.2 of the Code of Corporate Governance.
The Code comes under the purview of the Monetary Authority of Singapore and the Singapore Exchange, and is applicable to listed companies in Singapore on a comply-or-explain basis.
Currently, 3 out of Nam Cheong&rsquo s 6 directors are independent and non-executive.
As part of its justifications, Nam Cheong said continued services of the current size of the Board are &ldquo crucial and critical&rdquo as its members&rsquo &ldquo valuable experience and expertise&rdquo contribute to the group&rsquo s decision-making process.
&ldquo The directors have contributed significantly in terms of experience, expertise, professionalism, integrity, objectivity and independent judgment in engaging and challenging management to the best interest of the group as it performs its duties in good faith, which by means are more prudent measures than ascertaining majority independence of the Board size,&rdquo it added.
Nam Cheong also said preserving its current board would avoid &ldquo undue disruption&rdquo given the &ldquo dynamic&rdquo nature of its business, and help &ldquo maintain institutional knowledge and continuity&rdquo .
These are &ldquo more important&rdquo than reconstituting the board to comply with the Code, it reiterated.
The company, meanwhile, stressed that the roles of the executive chairman, executive vice-chairman cum finance director and the company&rsquo s chief executive are assumed by different individuals &ndash Tiong Su Kouk, his son Tiong Chiong Hiiung and son-in-law Leong Seng Keat.
The Code states that its set of board composition and guidance provisions is to ensure an appropriate level of independence and diversity of thought and background in its composition to enable it to make decisions in the best interests of the company.
But Nam Cheong said it believes that the current composition &ldquo encompasses an appropriate balance and diversity of skills, experience, knowledge and competencies&rdquo . These aspects are &ldquo adequate to avoid groupthink and foster constructive debate&rdquo , it added.
SGX-ST also asked Nam Cheong to provide an explanation as to why it had reached an understanding with Non-Fujian Group Shipyards to suspend construction or delivery of vessels without a written agreement.
Without directly addressing the question, Nam Cheong said it reached an understanding with the company with a view to extending the delivery period and/or terminating the contracts to minimise the group&rsquo s financial exposure.
Nam Cheong&rsquo s outstanding exposure to Non-Fujian Group Shipyards stands at about US$104.8 million, of which US$80.1 million has not been recognised as liabilities in its financial statements as the contractual milestones have yet to be achieved, it noted.
As for whether it has any plans to obtain a written agreement, it only said the company &ldquo will continue to engage Non-Fujian Group Shipyards to work towards achieving an amicable and formal settlement&rdquo .
Of greater priority, however, is dealing with &ldquo key creditors&rdquo relating to its groupwide financial restructuring, it stated.
The company has been restructuring its trade payables since 2017, and its total trade payables had decreased from RM1.074 billion to RM184.3 million as of Dec 31, 2021, mainly due to &ldquo amicable negotiations and settlement agreements&rdquo , it said.
Trading of Nam Cheong shares has been suspended since April 2020.
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Joelton
Supreme |
14-Apr-2022 09:22
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Nam Cheong auditor issues disclaimer of opinion on FY2021 financial statements
NAM Cheong said that its auditor has issued a disclaimer of opinion on the offshore support vessel builder' s use of the " going-concern" basis of accounting for its FY2021 financial statements.
The company said in its regulatory filing on Wednesday (Apr 13) that auditor Foo Kon Tan has been unable to obtain enough appropriate audit evidence to form an audit opinion on the financial statements.
Net current liabilities, flagged by the auditor, of the Malaysia-based group stood at about RM1.1 billion (S$350 million) its net liabilities amounted to RM675.8 million as at end-December 2021.
The statements were prepared by the management on a going-concern basis, the validity of which was premised on a cash-flows forecast of the group prepared for at least the next 12 months from the end of the reporting period, added Foo Kon Tan.
But it was assumed by the management that the group was not exposed to additional liabilities arising from its suspension of the remaining 10 shipbuilding contracts awarded to a group of shipyards, and that its restructuring exercise was to be completed in FY2022.
Nam Cheong' s management told its auditor that an understanding without a written agreement has been reached with the shipyards in question to suspend construction or delivery of the vessels, with a view to extending the delivery period or terminating the contracts to minimise financial exposure.
But this information was not furnished to the auditor in the form of independently verifiable supporting evidence to convince the auditor that the balance sum of the contracts had not been incurred and all liabilities related to the contracts had been accounted for as at end-December 2021.
Nam Cheong' s outstanding exposure under these orders to the shipyards is approximately US$104.8 million US$24.7 million has been recorded in liabilities under trade and other payables.
Foo Kon Tan noted: " Any adjustment that would be required may have a consequential significant effect on the cash flows forecast, net liabilities of the group as at Dec 31, 2021, and the profit or loss attributable to the owners for the year then ended and the related disclosures thereof in the financial statements."
Trading on the counter has been suspended since April 2018.
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gravity8888
Supreme |
19-Jun-2021 14:34
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Gg | ||
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Joelton
Supreme |
19-Jun-2021 12:50
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Nam Cheong' s current assets ' unlikely to adequately meet' RM1.38b in liabilities
MALAYSIAN offshore support vessel builder Nam Cheong, which is trying to restructure its debts to " ride out this incredibly challenging market environment" , on Friday said its board is still unable to confirm the group' s ability to continue as a going concern.
In response to the Singapore Exchange' s (SGX) queries, Nam Cheong noted that the group' s current assets of RM266 million (S$86.2 million) in Q1 2021 are " unlikely to adequately meet" its short-term liabilities of RM1.38 billion during the quarter.
This was a result of the depressed utilisation of vessels and realisable value of the group' s vessels, which are operating in the challenging oil and gas industry, it said on Friday.
The short-term liabilities mainly comprised loans and borrowings of about RM1.01 billion as well as trade and other payables of RM327 million.
Nam Cheong told SGX that the group has been holding discussions with its principal lenders and has appointed advisers to help address significant debt maturities, which may include an extension of the maturities and/or restructuring of existing loans, as announced previously.
Since November 2020, its wholly-owned subsidiary Nam Cheong Dockyard has been engaging actively with both financial creditors and trade creditors, " with more steady progress in the latter" , and the group is hopeful for a positive outcome, it said on Friday.
The group has also been reviewing its cash-flow projections and discussing with various parties regarding possible actions to contain operating costs and preserve working capital to fund its operations.
However, no definitive agreements in relation to the debt restructuring have been entered into by the group, Nam Cheong said in its response to SGX.
In the event its debt restructuring is " not favourably completed in a timely manner, the company and the group will continue to be faced with a going concern issue" , Nam Cheong added.
The board voluntarily suspended trading in Nam Cheong shares in April 2020, as it was unable to reasonably assess the company' s financial position and demonstrate that the company was able to continue as a going concern.
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PhillipTan
Supreme |
19-Jun-2021 01:55
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Nam Cheong' s current assets ' unlikely to adequately meet' RM1.38b in liabilitiesMalaysian offshore support vessel builder Nam Cheong, which is trying to restructure its debts to " ride out this incredibly challenging market environment" , on Friday said its board is still unable to confirm the group' s ability to continue as a going concern.In response to the Singapore Exchange' s (SGX) queries, Nam Cheong noted that the group' s current assets of RM266 million (S$86.2 million) in Q1 2021 are " unlikely to adequately meet" its short-term liabilities of RM1.38 billion during the quarter. This was a result of the depressed utilisation of vessels and realisable value of the group' s vessels, which are operating in the challenging oil and gas industry, it said on Friday. The short-term liabilities mainly comprised loans and borrowings of about RM1.01 billion as well as trade and other payables of RM327 million. Nam Cheong told SGX that the group has been holding discussions with its principal lenders and has appointed advisers to help address significant debt maturities, which may include an extension of the maturities and/or restructuring of existing loans, as announced previously. Since November 2020, its wholly-owned subsidiary Nam Cheong Dockyard has been engaging actively with both financial creditors and trade creditors, " with more steady progress in the latter" , and the group is hopeful for a positive outcome, it said on Friday. The group has also been reviewing its cash-flow projections and discussing with various parties regarding possible actions to contain operating costs and preserve working capital to fund its operations. However, no definitive agreements in relation to the debt restructuring have been entered into by the group, Nam Cheong said in its response to SGX. In the event its debt restructuring is " not favourably completed in a timely manner, the company and the group will continue to be faced with a going concern issue" , Nam Cheong added. The board voluntarily suspended trading in Nam Cheong shares in April 2020, as it was unable to reasonably assess the company' s financial position and demonstrate that the company was able to continue as a going concern. |
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newbie19
Supreme |
11-Feb-2021 19:02
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Happy Lunar New Year to everyone here.. May Niu year brings good health not forgetting HUAT all the way to the banks.. | ||
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Joelton
Supreme |
02-Oct-2020 09:16
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Nam Cheong' s creditors to withhold proceedings against its unit while it prepares debt restructuring proposal
MALAYSIAN offshore support vessel builder Nam Cheong on Thursday said that following an application by its wholly owned subsidiary, Nam Cheong Dockyard (NCD) to the Corporate Debt Restructuring Committee of Malaysia (CDRC), NCD' s financial institution creditors are expected to withhold from any proceedings against NCD and its subsidiaries.
This is part of an informal standstill that will last for an initial six-month period, said the company in a regulatory update.
Meanwhile, NCD is expected to submit a proposal for a restructuring of its debts within 60 days from the date of CDRC' s admission, after which CDRC will call for a meeting with NCD' s creditors.
The company is hopeful of being able to get back to the term loan creditors and all other creditors in the near future with some indication of its plans which must ensure underlying viability and the generation of sufficient earnings before interest, taxes, depreciation, and amortisation (Ebitda) to meet its obligations, said Nam Cheong.
However, the group has yet to enter any definitive agreement in relation to the restructuring. In the event that restructuring is not completed in a timely manner, the company will be faced with a going concern issue, said Nam Cheong.
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Joelton
Supreme |
30-Jun-2020 12:44
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Nam Cheong unable to pay interest on loan amid ' severe' cash flow constraints
MALAYSIAN offshore support vessel builder Nam Cheong on Monday said it needs to suspend the upcoming payment of its term loan' s cash interest coming due on June 30.
The 2 per cent per annum interest is payable in cash for the half year ending June 30, which will be the fifth interest period for the term loan.
" This is primarily due to severe cash flow constraints faced by the group for the foreseeable future as a result of the declining vessel daily charter rates and utilisation as well as the realisable value of the group' s vessels," Nam Cheong said, adding that these factors hindered the mainboard-listed company' s ability to meet its debt obligations.
Moreover, there were " uncontrollable external factors" which also had a severe adverse impact on the company, Nam Cheong noted. For instance, the OSV sector has taken a hit from the oil price volatility since January this year as well as from Malaysia' s extended movement control order in response to the Covid-19 pandemic.
Under the group' s debt restructuring exercise completed in late-2018, Nam Cheong is required to service the 2 per cent cash interest as well as another 2 per cent in accrued interest by way of shares to be allotted and issued on the last day of each 12-month period.
On Monday, Nam Cheong did not disclose the size of the term loan or the amount of cash interest coming due on June 30, although creditors owed about US$319.8 million had opted for the seven-year term loan in January 2018.
The company said it " very much regrets" the suspension of the cash interest payment, " but perhaps the term loan creditors might empathise with its position" .
Nam Cheong added that it is exploring a number of initiatives that will hopefully place it in a better financial and operational footing.
It intends to update the term loan creditors in the near future, " possibly before the end of August 2020" , with some indication of its plans to ensure the company' s underlying viability and the generation of sufficient earnings before interest, taxes, depreciation and amortisation to meet its obligations.
In April, Nam Cheong announced that it is reviewing its options to realign its businesses, operations and balance sheet to preserve value for stakeholders. It said then that it was in talks with lenders and may appoint advisers to help address significant debt maturities, with possible steps including extending the maturities or restructuring existing loans.
No definitive agreements in relation to any future restructuring options have been signed by the group as at Monday.
Mainboard-listed Nam Cheong has voluntarily suspended trading of its shares since April 2018.
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Joelton
Supreme |
27-Apr-2020 09:44
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Nam Cheong
MAINBOARD-LISTED shipbuilder Nam Cheong, which last week warned that it was mulling over a restructuring, said on Sunday that it will hold its annual general meeting by June 29.
It got a two-month extension from the bourse for its annual report and meeting, as Malaysia' s " unprecedented" movement control order disrupted the finalisation of the report.
The report, originally due by April 15, will now be released by April 29.
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Joelton
Supreme |
15-Apr-2020 09:54
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Nam Cheong' s financial statements given disclaimer of opinionTUE, APR 14, 2020 - 7:00 PMMAINBOARD-LISTED Nam Cheong Limited' s financial statements have been given a disclaimer of opinion by its independent auditors over the company' s liabilities and ability to continue as a going concern. The company' s financial statements had been prepared on a going-concern basis, with a key assumption made in the cash flows forecast that Nam Cheong was not exposed to any additional liabilities in suspending 10 remaining shipbuilding contracts it had awarded to a group of sub-contracted shipyards. As at Dec 31, 2019, the aggregate sum of the contracts was US$121.1 million, of which payments of US$16.3 million had been made by Nam Cheong, meaning that the outstanding exposure to the group of shipyards is about US$104.8 million. About US$24.7 million had been recorded in liabilities based on contractual milestones. Nam Cheong' s management had also represented that the group had reached an understanding without a written agreement with the group of shipyards to suspend construction or delivery of the vessels, with a view to extending the delivery period or terminating the contracts to minimise financial exposure. But the auditors, Foo Kon Tan LLP, flagged that there was no " independently verifiable" evidence to support this. Hence, Foo Kon Tan said: " We were unable to assess the financial impact of any provision for onerous contracts and/or contingent liabilities that may arise from the default on contractual obligations." The auditors added that any adjustment required may have a consequential " significant effect" on the cash flow forecast, net liabilities of the group, attributable profit or loss, and related disclosures in the financial statements for the financial year ended Dec 31, 2019. In March, Nam Cheong had faced a query from the Singapore Exchange about its ability to operate as going concern. But the group had said that it had sufficient working capital and financial resources to meet its obligations for at least 12 months from the end of the financial year. |
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embracez
Senior |
11-Dec-2019 10:34
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It all starts with getting contracts by the time you wait for +cash flows and 2Q of positive Reorting, you think you can get at this price ? |
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kerier
Veteran |
10-Dec-2019 21:06
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the debt is too much.. and no + cashflow
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embracez
Senior |
10-Dec-2019 19:15
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I am surprised no one talks about this given the company just won above 4 contracts (3 announced today and a few earlier) loading up 1M then see you again |
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commando
Master |
18-Nov-2019 11:25
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U r spot on...too risky to buy
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tingahdi
Member |
15-Nov-2019 09:53
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I think the worst is over for Nam Cheong..... looking ahead | ||
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tingahdi
Member |
12-Nov-2019 15:33
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Oil & gas related business..... on the way up...... | ||
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SmallSmall
Supreme |
08-Nov-2019 16:45
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Running on air ... | ||
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