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Need more traders to create sufficient liquidity, Fatty Bombom. You have to work harder and counting on you. Lol, no pun intended. Nothing much going on here.
It says, in short, "Acquisition of asset - Guizhou Shenqi Parkson Retail Development Co., Ltd. an indirect 60% owned subsidiary of PRGL & Guizhou Longgang Commercial Operation Management Co., Ltd. entered a tenancy agreement for a property in Guiyang City, Guizhou Province, the People's Republic of China ("PRC") on Basement Level 1, and Level 1 to Level 4 in Longgang International Center, 117 Zhonghua Middle Road, Guiyang City, Guizhou Province, PRC worth approximately Rmb57.1 million (equivalent to approximately RM37.1 million) for a term of up to 15 years and 7 months commencing from 30 April 2024 after 7-month renovation period
The Acquisition of Asset (as a right-of-use asset) does not have a material impact on the earnings and the net assets of the PHB Group for the financial year ending 31 December 2024."
Positive announcement from my personal opinion :) There are 2 positive actions here : (1) It mentioned 7 months renovation period which means its an expansion to existing floor space of Parkson Guiyang; probably basement level 1 is new. (2) Efficiency actions continues to be in place for China ops and thanks to MFRS 16. What used to be a 20 years tenancy agreement is now trending to 15 years. The last tenancy agreement for Parkson Guiyang was signed for 20 years term back in early 2000 and it is now a 15 years term :)
True. PRGL survived harsh Covid19 measures imposed by PRC government with their Zero Covid19 case regime. We see there were deflation in retail business where retailers have huge stocks which drove their prices down. This happened last year. Early this year, we see Retail Sales, Customer spending improving. Now, there is no more deflation. Supplies running short. Price inflated. Realising this, Parkson applied for 1.6bil loan. They open up new stores. Parkson should make money from this point on. Sentiment is good.
Thanks for the sharing, Ricardo. I believed so though the 1.6bil loan announcement did not disclose the breakdown of the marginal cost (weightage and net worth) as it just mentioned a specific performance obligation on a controlling shareholder of PRGL; shareholdings in PRGL.
