Financial Management
Course Assessment 1
Student Name
:
TAY YEN PEI
Student Number
:
7323510
Assignment Reference
:
FM/Jan10/1
Word Count
:
2,220
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FM/Jan10/1
Table of Contents
Table of Contents ....................................................................................................................... 2
List of Figures ............................................................................................................................ 2
List of Tables ............................................................................................................................. 3
1
Introduction ........................................................................................................................ 4
2
Strategic Pre-evaluation ...................................................................................................... 6
3
Financial Analysis and Evaluation ................................................................................... 12
4
Outlook ............................................................................................................................. 16
References ................................................................................................................................ 17
Appendix 1 – List of GreenPacket’s Subsidiaries ................................................................... 18
Appendix 2 – P1 Roll Out Strategy ......................................................................................... 20
Appendix 3 – GreenPacket Balance Sheets (2005 - 2009) ...................................................... 21
Appendix 4 – GreenPacket Income Statements (2005 - 2009) ................................................ 23
Appendix 5 – GreenPacket Cash Flow Statements (2005 - 2009)........................................... 24
List of Figures
Figure 1: GreenPacket’s Value Chain Activities ....................................................................... 5
Figure 2: GreenPacket’s SWOT Analysis ................................................................................. 8
Figure 3: GreenPacket Growth Projection FY2010 – 2014 ..................................................... 10
Figure 4: Margin Analysis for GreenPacket (FY2005 – 2009) ............................................... 13
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List of Tables
Table 1: Malaysia Real GDP Growth and Projected Growth for 2010 - 2014 .......................... 6
Table 2: Malaysia Inflation Rate (CPI) 2005 - 2010 ................................................................. 6
Table 3: Malaysia Nominal GDP Growth 2005 - 2010 ............................................................. 6
Table 4: Difference analysis on GreenPacket Income Statements for 2008 - 2009 ................ 12
Table 5: GreenPacket’s Cost of Sales and its associated cost drivers ..................................... 13
Table 6: GreenPacket’s Operating Costs and its associated cost drivers ................................. 13
Table 7: GreenPacket’s PERL Ratios Analysis ....................................................................... 14
Table 8: GreenPacket’s Average Annual Labour Rate ............................................................ 15
Table 9: Quick Ratios Comparison .......................................................................................... 15
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Introduction
Company Overview
GreenPacket Berhad is an international information, communications and technology (ICT)
company headquartered in Kuala Lumpur, Malaysia and is listed on the Main Board of Kuala Lumpur
Stock Exchange since 2005. GreenPacket is principally engaged in the business of research &
development, manufacturing, sales, marketing and distribution of wireless telecommunication
products for telecom operators worldwide.
GreenPacket Berhad is the holding company of 22 subsidiaries worldwide including Packet
One Networks (P1), which serves as the company’s core WiMAX service provider arm. P1 is one of
the first WiMAX operators in Asia Pacific region, in which it is rapidly expanding in Malaysia since
August 2008.
Intended Audience and Analytical Objectives
This analysis report is intended to address the following concerns raised by GreenPacket’s
customers and suppliers on sustainability of long term strategic partnership and business continuity
with GreenPacket.


GreenPacket’s customers:
o
To better understand on GreenPacket’s financial ability to continue funding research
and development programs in delivering high quality and innovative products as
promised in the next 5 years’ roadmap.
o
To understand GreenPacket’s cost structure such as Labour Asset Turnover and
margin, with their impact to the overall price to customers.
GreenPacket’s suppliers:
o
To understand GreenPacket’s cash flow cycle and its efficiency in terms of stock
holding period and creditor age. This helps to further assess the risk of default
payment or writing off GreenPacket’s trade payables as bad debts.
o
To be able to project material supply demand based on GreenPacket’s growth and the
market outlook for the next 5 years.
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GreenPacket’s Value Chain
GreenPacket core business can be decomposed into two pillars namely Product & Solutions
and Service Provider. Product & Solutions pillar generally involve in manufacturing of best-in-class
wireless network devices and software, selling and distributing to telecom operators worldwide. The
Service Provider pillar, which promotes under P1’s name, offers affordable and widely accessible
WiMAX network service to end-users. P1 also offers consulting and professional services to help
other operators in WiMAX technologies rollout. Both pillars require transformation of real (wireless
device chipset, network equipment and infrastructure) and intangible assets (network professionals,
R&D personnel and software developers) into products that fulfil their customer needs.
Figure 1: GreenPacket’s Value Chain Activities
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Strategic Pre-evaluation
Economic Outlook
Despite a declining GDP growth rate recorded in 2009, the Government of Malaysia is
continuing its efforts to boost domestic demand while strengthening its exports particularly on
electronics, which remain a significant driver of the economy. IMF has also projected a healthy GDP
growth for the next 5 years starting 2010.
Table 1: Malaysia Real GDP Growth and Projected Growth for 2010 - 2014
Year
2005
2006
2007
2008
2009
GDP Growth
5.332
5.849
6.181
4.633
-3.631
Year
GDP Growth
2010*
2.516
2011*
4.050
* Indicate IMF estimates
2012*
5.500
2013*
6.000
2014*
6.000
Source: International Monetary Fund
Table 2: Malaysia Inflation Rate (CPI) 2005 - 2010
Year
2005
2006
2007
2008
2009
2010*
Inflation (%)
1.300
3.000
3.800
2.000
5.400
1.200
Source: Trading Economics
* As of February 2010
Table 3: Malaysia Nominal GDP Growth 2005 - 2010
Year
Nominal
GDP
2005
2006
2007
2008
2009
2010*
6.701
9.024
10.216
6.726
1.573
3.746
* Projected figure
Furthermore, Malaysian Ringgit has consistently appreciated against US dollars over past 5
years, from a pegging rate of RM3.80 per dollar to a record RM3.18 in April 2010. The Central Bank
of Malaysia has expected the Ringgit to hit RM3.00 mark by end of 2010.1 A higher exchange rate
may affect GreenPacket product exports to overseas market, earning a lower margin.
1
Ringgit to strengthen to RM3.00 by year end, Malaysia Economic Research Institute. [Online]
<URL:http://www.mysinchew.com/node/37759 > [Accessed 20 March 2010]
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Government Policy Impact
In domestic market, the National ICT Association of Malaysia (PIKOM) has further projected
a strong 8% growth in ICT sector. Coupled with the government’s effort to raise country broadband
penetration rate to 50% by end of 2010, a national budget provision of RM 2.4 billion2 has been
allocated to improve telecommunications infrastructure and broadband access. Furthermore, income
tax relief on consumer broadband subscription and subsidy of Netbooks for university students may
stimulate domestic broadband demand.3 P1, the only operational WiMAX operator in the country, is
expected to capitalize in this regulated telecommunication market.
Technology Affecting Social Trend
On global front, there are currently 519 WiMAX deployments in 146 countries covering over
430 million potential subscribers. As most WiMAX operators are in their growth stage and expect a
steep subscriber take up rate in coming years.4 The explosion of social networking applications and
the introduction of more WiMAX-enabled Netbooks and handsets shall continue to spur the social
demand for mobile broadband and portable WiMAX devices.
2
Industry Overview, GreenPacket Berhad Annual Report 2008. p.27.
3
8% overall growth in ICT spending for 2010, Pikom. [Online]
<URL:http://www.pikom.org.my/cms/General.asp?whichfile=Press+Releases&ProductID=22617&CatID=33>
[Accessed 20 March 2010]
WiMAX™ Deployments Go Global with 519 in 146 Countries, WiMAX Forum. [Online] <URL:
http://www.wimaxforum.org/news/2030 > [Accessed 20 March 2010]
4
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Strategic Analysis
The environmental scan using SWOT analysis reveals the competitive environment in which
GreenPacket operates in.
Figure 2: GreenPacket’s SWOT Analysis
Strengths

Vertical Integration: GreenPacket has 22 subsidiaries5 involving in research, design,
development and manufacturing of WiMAX network products. GreenPacket
leverages on P1, on bundling its products exclusively for P1 subscribers.

Industry Leader: P1 is the first mover in WiMAX rollout in Malaysia with the widest
coverage and largest subscriber base. Rapidly expanding and it has a huge network of
dealers.
Cost Implication: High production cost in maintaining wide product base and rising
production capacity. High marketing cost to further elevate P1 brand in the growth
market.
5
Appendix 1 – List of GreenPacket subsidiaries and associates
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Weaknesses

Lack of corporate synergy from acquisitions: GreenPacket did not immediately
derive returns from its increase stakes in subsidiaries due to lack of corporate
synergy in streamlining product development and portfolio consolidation.

Conflict of Interest: The vertical integration into WiMAX service provider has
prevented GreenPacket from selling directly to other competing operators.

High Subscriber Churn: The high churn rate is due to rapid network deployment at
the expense of network capacity, impacting subscriber connectivity experience.
Cost Implication: High cost of subscriber acquisition. Lack of synergy incurs
duplicate costs from redundant functions among subsidiaries.
Opportunities

Market Development: To alleviate the risks associated with single market dependency,
GreenPacket will continue to expand into matured and emerging markets in US and
Middle East.

Product Portfolio Expansion: The Product & Solution pillar will continue to invest
into developing new WiMAX network devices and software solution as the
commitment to achieve product leadership position. In 2010, GreenPacket shall be
the largest WiMAX device provider in the world.

Network Coverage Expansion: Expect network rollout to East Malaysia and
Singapore in 2010, and acquire new WiMAX licenses in region.6
Cost Implication: High development cost in expanding product portfolio and
rebranding, adding capital expense and operational cost to startup operations in new
markets.
Threats
6

High entry barrier: Access to matured market may incur high presales cost as these
markets are safeguarded by giant technology incumbents such as Motorola, Samsung
and Huawei.

New entrants: Apart from intense existing competition, more WiMAX operators are
expected to roll out their services starting 2010.

New substitutes: High-speed broadband on the fixed network and Long Term
Evolution (LTE) technology rollout may supersede WiMAX technology.

Cost Implication: Potential lower revenue due to new entrants and substitute offering
the same benefit to subscribers.
Appendix 2 – P1 Roll Out Strategy
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Strategic Intent
Despite recording operating loss of RM150 million in 2009 and RM49 million the previous
year, GreenPacket’s strategic intent to become the top WiMAX device manufacturer with expanded
product portfolio and strengthen its global brand presence shall expect continuous heavy investment
in both Product & Solution and Service Provider pillars. The high cost of operations coupled with
major capital expense serve as the underlying theme that explains GreenPacket’s current expenditure
pattern. Threats from new entrants and substitute technologies may further exploit its weaknesses,
losing more subscribers, reducing potential revenue and lowering its operating margin. Nevertheless,
the top management is committed to continue investing, optimizing and streamlining business and
operational processes, reaping returns in the long term.7
Figure 3: GreenPacket Growth Projection FY2010 – 2014
7
Future Growth, GreenPacket Berhad Annual Report 2008. p.30.
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Analytical Questions
1. With the mass market demand for WiMAX products and solution, will GreenPacket continue
to stock up inventory to fulfill the market needs?
2. Is GreenPacket broad base product strategy effective? This is important to position
GreenPacket as one-stop shop for WiMAX customers.
3. Will GreenPacket sustain profitable growth based on its domestic mobile broadband business
alone? This is critical in assessing the possibility of GreenPacket launching P1 WiMAX
service in customer’s home country.
4. What are the ultimate cost drivers behind GreenPacket’s recent losses and how can it recover
to its profitability? This is critical for both suppliers and customers in seeking long term
business continuity with GreenPacket.
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Financial Analysis and Evaluation
Difference and Margin Analysis
Table 4: Difference analysis on GreenPacket Income Statements for 2008 - 2009
Figures in RM'000
PERIOD ENDING
Revenue
Cost of Sales
31-Dec-08
Adjusted for Inflation
31-Dec-09 Change %
Adjusted for Nominal GDP
31-Dec-08 31-Dec-09 Change %
92,220
234,533
254.32
f
88,871
234,533
263.90
f
(68,379)
(105,088)
-153.68
a
(65,896)
(105,088)
-159.47
a
Gross Profit
23,840
129,445
542.96
f
22,975
129,445
563.42
f
Other Income
Gross Revenue
15,192
5,114
33.66
f
14,641
5,114
34.93
f
39,033
134,559
344.73
f
37,616
134,559
357.72
f
(57,561)
(208,546)
-362.30
a
(55,471)
(208,546)
-375.95
a
(11,593)
(51,758)
-446.46
a
(11,172)
(51,758)
-463.28
a
(21,218)
(24,697)
-116.40
a
(20,448)
(24,697)
-120.78
a
(51,339)
(150,442)
-293.03
a
(49,475)
(150,442)
-304.08
a
Administrative
expenses
Selling and distribution
expenses
Other operating
expenses
Operating Profit
(Loss)
The difference analysis (refer Table 4) reveals that a strong revenue gain especially in
2009 poses an effective sign of GreenPacket’s wide product portfolio strategy and aggressive
P1 WiMAX service rollout. The revenue growth of 263.9% in 2009 has far exceeded 8% of
ICT industry growth despite in recession and this has contributed to promising gross revenue.
Although gross profit increases five folds since 2005, the margin analysis (see Figure
4) indicates that GreenPacket has sustained a gradual drop in gross profit margin due to its
ever increasing development costs since its inception of WiMAX hardware manufacturing
operation in 2007. Massive stocking and purchase of new WiMAX devices to fulfil
worldwide demand has contributed more than one third of total cost of goods sold (refer
Table 5).
Operating profit margin continued to plunge since 2008, with administrative and sales
distribution expenses serving as the key cost drivers. High administrative cost incurred
almost 4 times as much as previous year due to doubling of headcounts for P1 WiMAX
service launch starting August 2008. Sales commission payout to distributors and dealers has
jumped to RM51.758 million in 2009 (refer Table 6), echoing the rapid subscriber take up rate
and high cost of customer acquisition. This has significantly caused an adverse effect on the
bottom line. Generally, the margin trend is unstable and moving downward, implying the
volatility of GreenPacket’s business.
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Figure 4: Margin Analysis for GreenPacket (FY2005 – 2009)
Table 5: GreenPacket’s Cost of Sales and its associated cost drivers
Figures in RM'000
PERIOD ENDING
Cost of Sales
(COGS)8
Development
costs9
Inventories held for resale9
31-Dec-05
31-Dec-06
31-Dec-07
31-Dec-08
31-Dec-09
(5,613)
(27,312)
(50,996)
(64,876)
(105,088)
4,678
8,552
27,912
47,348
60,790
1,085
8,129
19,305
17,938
44,298
Table 6: GreenPacket’s Operating Costs and its associated cost drivers
Figures in RM'000
PERIOD ENDING
Administrative expenses8
Selling and distribution
Other operating
Total full-time
31-Dec-06
31-Dec-07
31-Dec-08
31-Dec-09
(5,488)
(19,066)
(39,471)
(54,612)
(208,546)
(10,999)
(51,758)
expenses8
expenses8
staffs8
31-Dec-05
(347)
(6,313)
(9,163)
(20,131)
(24,697)
119
397
460
630
900
8
Extracted from GreenPacket Income Statements. Refer to Appendx 4.
9
Extracted from GreenPacket Balance Sheets. Refer to Appendix 3.
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PERL Ratios Analysis
Table 7: GreenPacket’s PERL Ratios Analysis
PERIOD ENDING
2005
2006
2007
2008
2009
Return on Capital Employed (ROCE)
28.56%
13.77%
Return on Equity (ROE)
28.59%
13.03%
6.98%
-9.53%
-26.87%
6.84%
-13.02%
-43.27%
Return on Fixed Capital Employed (ROFCE)
117.04%
60.42%
22.41%
-18.41%
-28.90%
Return on Total Asset (ROTA)
30.18%
14.60%
8.34%
-10.28%
-20.70%
2005
2006
2007
2008
2009
Cost Efficiency Ratio (Direct)
-
1.94
1.50
1.79
0.60
Cost Efficiency Ratio (Operating)
-
1.73
1.54
2.48
1.24
Fixed Asset Turnover
1.94
3.67
3.13
0.42
0.48
Labour Asset Turnover
7.18
5.19
3.11
1.60
1.12
Labour Productivity Ratio
330.91
249.20
267.03
138.88
260.59
Debtor Age (days)
205.24
195.77
138.39
129.66
69.84
Creditor Age (days)
0.00
138.67
37.89
61.15
280.57
Inventory Holding Period (days)
70.55
108.64
138.17
100.92
153.86
Performance Ratios
PERIOD ENDING
Efficiency Ratios
Purchases on credit (days)
0
27312
50996
64876
105088
275.79
165.74
238.67
169.43
-56.86
2005
2006
2007
2008
2009
Debt-to-Equity Ratio
0.00
0.00
0.01
0.45
0.61
Capital Gearing Ratio
0.00
0.00
0.01
0.31
0.38
Interest Cover Ratio
4932.00
2127.08
485.71
99.00
9.15
Interest Gearing
0.0002
0.0005
0.0021
0.0101
0.1092
Beaver Failing Ratio
16.55
1.05
-0.28
-0.17
0.03
PERIOD ENDING
2005
2006
2007
2008
2009
59.69
8.37
12.76
5.62
2.34
Cash Flow Cycle (days)
PERIOD ENDING
Risk Ratios
Liquidity Ratios
Current Asset Ratio
Quick Asset Ratio (Acid Test)
58.45
8.19
12.02
5.35
2.05
Cash Exhaustion Ratio (days)
858.46
2104.70
888.29
681.50
186.76
GreenPacket’s performance has been degrading for the past 5 years. Its ROCE had declined
steeply despite heavy fund raising through long-term debt financing and share capital especially in
2008 and 2009, where the operating losses have led to negative ROCE. One major driver was the
declining ROTA, implying the inefficient use of its assets to generate operating surplus.
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Considering its efficiency ratios, significant drops of direct cost efficiency ratio in 2009
indicate a lower actual cost of sales over its predicted cost. This reflected that GreenPacket managed
to keep its supplier’s materials price low and control it efficiently. Operating costs have always being
underestimated over the past 5 years, with more than twice (2.48) as much as the predicted operating
cost recorded in 2008. Fixed Asset Turnover ratio went down to 0.42 and 0.48 respectively for 2008
and 2009. This is mainly due to heavy acquisitions made in property, plant and equipment (mainly on
acquiring new WiMAX sites and base stations) for nationwide P1 WiMAX service rollout. Critical to
the knowledge of WiMAX equipment suppliers, if the FAT continues to be low, it may not justify
further investment in additional WiMAX sites deployment as planned. (Refer Appendix 2)
Labour Asset Turnover has gone through a gradual decline due to higher employee
remuneration. This is evidently supported by assessing Average Labour Rate (see Table 8) and
Labour Productivity Ratio, where it remained steadily at 260.59 in 2009. This also means for every
ringgit spent on labour, lower revenue is generated even with almost the same staff productivity. To
GreenPacket’s customer, higher employee cost means potential higher price for customer to pay for
the same service unless GreenPacket continue to absorb this in its profit margin, but unlikely.
Table 8: GreenPacket’s Average Annual Labour Rate
Figures in RM'000
PERIOD ENDING
Average Labour Rate
31-Dec-05
31-Dec-06
31-Dec-07
31-Dec-08
31-Dec-09
(46)
(48)
(86)
(87)
(232)
Debtor collection period has shortened to 69.84 days with creditor days extended to 280.57
days in 2009 with the overall cash flow cycle of -56.86 days. This is the most ideal case in terms of
liquidity as less cash is needed to pay off the suppliers upfront. The long creditor period is definitely
unfavorable to suppliers. In addition, long inventory holding period (more than 100 days across 4
years) not only adds up to the total inventory cost, it would lengthen the entire operating cycle while
running the risk of obsolescent for fast evolving WiMAX technology.
Current Asset Ratio and Quick Asset Ratio seem healthy and above industry average,
reflecting strong short-term financial capability (See Table 9). Cash Exhaustion dropped at an
alarming state from 681.5 days in 2008 to 186.76 days in 2009.
Table 9: Quick Ratios Comparison
Figures in 2009
Company
Quick Ratio (Acid Test)
GreenPacket
Motorola
Samsung
Industry
Average
2.05
1.4010
1.3411
1.2312
10
Motorola, Inc. Financial Ratios, Forbes.com. [Online]
<URL:http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=mot>
11
Samsung Electronics, Key Ratios & Statistics, Reuters UK. [Online] <URL:
http://uk.reuters.com/business/quotes/quote?symbol=005930.KS>
12
Collier et. al., An Example of Use of Financial Ratios: the case of Motorola. University of Wollongong. p.9
[Online] <URL:http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1025&context=commpapers>
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Outlook
With the high growth rate in WiMAX industry coupled with government initiatives, the
market outlook and demand for WiMAX devices and solution shall continue to be strong.
GreenPacket shall see a steady rise in its gross revenue over the next 5 years especially if
complemented with the successful P1 WiMAX rollout in the region by 2012 with the exclusivity in
bundling GreenPacket’s devices. However, its business sustainability is subject to effective internal
cost control and utilization of its strong cash to generate more revenue.
Key Recommendations
The recommendations can be classified into two strategic themes below:
Cost-saving Initiatives

Commission payout to Dealers can be translated into tier-based commission structure, to
reduce the sales and distribution expense.

All unnecessary administrative expenses shall be cut such as turning variable costs
(employee overtime claims) into fixed costs (by giving fixed allowances instead).

Carry short inventory. This shall shorten inventory holding period, transfer inventory cost
to suppliers to improve cash flow cycle.

Consolidate or create synergy between various strategic business units, improving labour
productivity while saving on operational costs.

Normalized employees’ wages based on performance shall improve labour asset turnover.
Strategic Investments

Continue to innovate in products to create more stars businesses but harvest on the
profitable cash cows.

Sell unprofitable subsidiaries or businesses.
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References
1. GreenPacket Berhad Annual Report 2005.
http://www.greenpacket.com/downloads/annualreports/GP%20annual%20report%202005.pdf
2. GreenPacket Berhad Annual Report 2006
http://www.greenpacket.com/downloads/annualreports/GP%20annual%20report%2006.zip
3. GreenPacket Berhad Annual Report 2007
http://www.greenpacket.com/downloads/annualreports/GPBAR07.pdf
4. GreenPacket Berhad Annual Report 2008
http://www.greenpacket.com/downloads/annualreports/GP_AR08_2.pdf
5. GreenPacket Berhad Quarterly Financial Results 2009 (Unaudited)
http://www.greenpacket.com/inves_financial.html
6. Malaysia Gross Domestic Product (GDP) Annual Percentage Change, International
Monetary Fund (IMF). [Online] <URL:
http://www.imf.org/external/pubs/ft/weo/2009/02/weodata/weorept.aspx?sy=2005&ey=2014&scsm=1
&ssd=1&sort=country&ds=.&br=1&pr1.x=24&pr1.y=14&c=548&s=NGDP_RPCH&grp=0&a=#cs1>
[Accessed 15 March 2010]
7. Ringgit to strengthen to RM3.00 by year end, Malaysia Economic Research Institute. [Online]
<URL:http://www.mysinchew.com/node/37759 > [Accessed 20 March 2010]
8. 8% overall growth in ICT spending for 2010, Pikom. [Online]
<URL:http://www.pikom.org.my/cms/General.asp?whichfile=Press+Releases&ProductID=22617&Cat
ID=33> [Accessed 20 March 2010]
9.
WiMAX™ Deployments Go Global with 519 in 146 Countries, WiMAX Forum. [Online]
<URL: http://www.wimaxforum.org/news/2030 > [Accessed 20 March 2010]
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Appendix 1 – List of GreenPacket’s Subsidiaries
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Appendix 2 – P1 Roll Out Strategy
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Appendix 3 – GreenPacket Balance Sheets (2005 - 2009)
GreenPacket Berhad
Balance Sheet
Figures in RM'000
PERIOD ENDING
Non-Current Assets
Investment in subsidiaries
Investment in an associate
Property, Plant and equipment
Prepaid land lease payments
Development costs
Intellectual property
Other investments
Goodwill on consolidation
Current Assets
Inventories held for resale
Trade receivables
Other receivables, deposits and
prepayments
Amount owing by a subsidiary
Short term investments
Tax Refundable
Deposits with licensed banks
Cash and bank balances
Share subscription monies
Total Assets
Current Liabilities
Trade payables
Other payables and accruals
Hire purchase payable
Term loans
Provisions
Provision for taxation
Non-current Liabilities
Trade payables
Hire purchase payable
Term loans
GCEB
Deferred tax liabilities
31-Dec-05
31-Dec-06
31-Dec-07
31-Dec-08
31-Dec-09
N/A
-
-
-
2,176
26,500
24,835
33,161
23,565
1,664
10,648
25,203
177,272
464,065
0
0
0
17,488
17,460
4,678
8,552
27,912
47,348
60,790
18,620
16,340
14,060
11,780
9,594
0
14,898
34,434
18,763
9,449
0
19,980
11,877
12,786
25,964
27,138
96,918
138,321
318,598
610,887
1,085
8,129
19,305
17,938
44,298
22,142
53,063
46,574
31,082
44,879
2,252
9,022
20,932
31,586
72,949
N/A
-
-
-
-
32,537
-
-
-
-
0
0
2,947
1,853
0
1,014
239,971
77,364
59,934
2,249
25,911
63,861
165,103
221,290
132,356
0
0
0
0
64,993
84,941
374,046
332,225
363,683
361,724
112,079
470,964
470,546
682,281
972,611
0
10,376
5,294
10,869
80,779
839
21,715
19,706
47,993
64,216
39
139
1,039
3,021
6,736
2,786
2,786
-
10,930
-
-
-
-
1,526
-
-
-
878
44,686
26,039
64,669
154,517
-
-
-
-
159,192
271
951
2,624
4,172
15,153
0
0
0
136,653
184,564
0
0
0
50,000
50,000
-
870
770
2,418
1,794
21
Financial Management
Total Liabilities
Shareholder's Equity
Share capital
Share premium
Foreign exchange translation
reserve
Retained profits
Treasury shares
Other reserve
Minority Interests
Total Equity and Liabilities
FM/Jan10/1
271
1,821
3,394
193,243
410,703
1,149
46,507
29,433
257,912
565,220
36,725
44,437
66,656
79,987
131,705
30,988
281,833
259,002
292,274
-
184
297
(199)
1,269
-
43,033
90,239
98,181
42,939
42,000
-
-
(6,687)
(11,388)
-
-
1,238
3,254
7,336
227,223
-
6,413
20,906
11,952
6,463
110,930
424,457
441,113
424,369
407,391
112,079
470,964
470,546
682,281
972,611
22
Financial Management
FM/Jan10/1
Appendix 4 – GreenPacket Income Statements (2005 - 2009)
GreenPacket Berhad
Income Statement
Figures in RM'000
PERIOD ENDING
31-Dec-05
31-Dec-06
31-Dec-07
31-Dec-08
31-Dec-09
Revenue
39,378
98,931
122,836
87,495
234,533
Cost of Sales
(5,613)
(27,312)
(50,996)
(64,876)
(173,902)
Gross Profit
33,765
71,619
71,840
22,619
60,631
Other Income
Gross Revenue
1,662
9,064
9,822
14,414
5,114
35,427
80,683
81,662
37,033
65,745
(5,488)
(19,066)
(39,471)
(54,612)
(174,139)
(10,999)
(17,351)
(347)
(6,313)
(9,163)
(20,131)
(24,697)
29,592
55,304
33,028
(48,709)
(150,442)
Administrative expenses
Selling and distribution
expenses
Other operating expenses
Operating Profit (Loss)
Finance Cost
(6)
(77)
(372)
(419)
(16,434)
Share of Profit in an associate
Profit (Loss) before Taxation
2,176
3,331
(1,664)
(9,513)
(9,669)
31,762
58,558
30,992
(58,641)
(176,545)
Taxation
Profit (Loss) after Taxation
(45)
(2,446)
(1,976)
(1,653)
(2,469)
31,717
56,112
29,016
(60,294)
(179,014)
Equity holders of the company
31,717
55,286
30,160
(55,242)
(176,289)
Minority Interest
-
826
(1,144)
(5,052)
(2,725)
31,717
56,112
29,016
(60,294)
(179,014)
10
14
9
(17)
(39)
-
14
9
-
-
119
397
460
630
900
Earnings per share (sen)
Basic
Diluted
Total full-time staffs
23
Financial Management
FM/Jan10/1
Appendix 5 – GreenPacket Cash Flow Statements (2005 2009)
GreenPacket Berhad
Cash Flow Statement
Figures in RM'000
PERIOD ENDING
31-Dec-05
31-Dec-06
31-Dec-07
31-Dec-08
31-Dec-09
31,762
58,558
30,992
(58,641)
(176,545)
-
60
264
482
-
Amortisation of development costs
372
485
607
2,173
3,639
Amortisation of intellectual property
Amortisation of prepaid land lease
payments
2,280
2,280
2,280
2,280
2,955
Profit before taxation
Adjustment for:
Allowance for doubtful debts
-
-
-
169
-
Bad debts written off
18
18
-
5,828
-
Depreciation of plant and equipment
341
1,436
3,832
4,959
18,889
Development cost written off
-
-
-
807
-
Equipment written off
Impairment loss on investment in
associates
48
19
11
36
-
-
-
-
625
-
Interest expense
6
26
68
492
0
Inventories written down
-
-
-
84
-
Share options granted under ESOS
-
1,238
2,016
4,082
4,169
Loss on disposal of equipment
3
30
151
(158)
-
Loss on disposal of a subsidiary
-
-
-
1,266
-
(120)
(2,432)
(8,514)
(4,631)
-
(536)
(100)
(179)
(14)
-
Unrealised gain on foreign exchange
Gain on dilution of investment in an
associate
(1,006)
2,833
390
(3,616)
-
-
(5,192)
-
-
-
Share of profit in an associate
Loss on partial disposal of a
subsidiary
(2,176)
(3,331)
1,664
9,513
9,669
-
-
-
278
-
-
-
-
-
11,320
30,992
55,928
33,582
(33,986)
(125,904)
(851)
(6,028)
(10,939)
1,283
(26,360)
(10,978)
(18,867)
(6,075)
(10,888)
(59,935)
(92)
6,107
(18,021)
885
245,325
-
-
-
-
-
19,071
37,140
(1,453)
(42,706)
33,126
Interest income
Tax-exempted distribution from unit
trusts
Other non-cash items
Operating profit before working
capital changes
Increase in inventories held for resale
Increase in trade and other
receivables
Increase in other payables and
accruals
Increase in amount owing by a
subsidiary
Cash from Operations
24
Financial Management
FM/Jan10/1
Interest Paid
(6)
(26)
(68)
(492)
(16,434)
Tax Paid
(45)
(2,402)
(6,548)
(942)
(3,093)
19,020
34,712
(8,069)
(44,140)
13,599
Net Cash from Operations
25