Challenger Technologies

[kopitescouser]

Harvey numbers will not be as good as courts as a comparison as both sells furniture and it products. As what I observe working 3 years in the IT sector


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[CityFarmer]

It seems the venture into Malaysia, didn't work out as expected.

Time to review the fundamentals of the company...

(vested)

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CESSATION OF RETAIL OPERATIONS IN MALAYSIA
The Board of Directors of Challenger Technologies Limited (“Company”) wishes to announce that
Challenger Technologies (M) Sdn. Bhd., a wholly-owned subsidiary of the Company, will be
winding down its retail operations in Malaysia by the end of Q2 2014.
As the Company is focusing on expanding its private label, Valore, which has mobility and
lifestyle accessories, the above is in line with the Company’s change of focus in Malaysia to be a
vendor of its Valore products.
None of the directors or substantial shareholders of the Company has any interest, direct or
indirect, in the above transaction

Ref: http://infopub.sgx.com/FileOpen/Cessatio...eID=277532

[felixleong]

It seems the venture into Malaysia, didn't work out as expected.

Time to review the fundamentals of the company...

(vested)

----------
CESSATION OF RETAIL OPERATIONS IN MALAYSIA
The Board of Directors of Challenger Technologies Limited (“Company”) wishes to announce that
Challenger Technologies (M) Sdn. Bhd., a wholly-owned subsidiary of the Company, will be
winding down its retail operations in Malaysia by the end of Q2 2014.
As the Company is focusing on expanding its private label, Valore, which has mobility and
lifestyle accessories, the above is in line with the Company’s change of focus in Malaysia to be a
vendor of its Valore products.
None of the directors or substantial shareholders of the Company has any interest, direct or
indirect, in the above transaction

Ref: http://infopub.sgx.com/FileOpen/Cessatio...eID=277532

thanks for the update, any idea what % of total revenues comes from msia?

[felixleong]

To date in Singapore, the Group has a total of 40 stores comprising one flagship
Challenger megastore, 22 Challenger superstores, 10mini stores, five Valore concept
stores and two Musica concept stores. In Malaysia,the Group operates one flagship
Challenger megastore and two Challenger superstores

If they wind down the 3 Msia stores, is it fair to say that maybe 10-15% of total revenues will be impacted?

[dzwm87]

Probably can get a more reliable data when you look at their subsidiary breakdown.

[dydx]

To date in Singapore, the Group has a total of 40 stores comprising one flagship
Challenger megastore, 22 Challenger superstores, 10mini stores, five Valore concept
stores and two Musica concept stores. In Malaysia,the Group operates one flagship
Challenger megastore and two Challenger superstores

If they wind down the 3 Msia stores, is it fair to say that maybe 10-15% of total revenues will be impacted?

In p10 of the latest FY13 result announcement…..
http://infopub.sgx.com/FileOpen/SGXNET_F...eID=274315
FY13 revenue from Malaysia of $16.021m amounted to only 4.3% of the group total of $385.404m, and non-current assets in Malaysia (presumably all related to the business operation there) amounted to only $721k as at 31Dec13. Therefore, conceivably the negative impacts on group revenue, profits and from asset impairment, by winding down the retail operations in Malaysia by end-2Q (i.e. 30Jun14) should just a small dent.

[felixleong]

To date in Singapore, the Group has a total of 40 stores comprising one flagship
Challenger megastore, 22 Challenger superstores, 10mini stores, five Valore concept
stores and two Musica concept stores. In Malaysia,the Group operates one flagship
Challenger megastore and two Challenger superstores

If they wind down the 3 Msia stores, is it fair to say that maybe 10-15% of total revenues will be impacted?

In p10 of the latest FY13 result announcement…..
http://infopub.sgx.com/FileOpen/SGXNET_F...eID=274315
FY13 revenue from Malaysia of $16.021m amounted to only 4.3% of the group total of $385.404m, and non-current assets in Malaysia (presumably all related to the business operation there) amounted to only $721k as at 31Dec13. Therefore, conceivably the negative impacts on group revenue, profits and from asset impairment, by winding down the retail operations in Malaysia by end-2Q (i.e. 30Jun14) should just a small dent.

Thanks a lot man, for a moment I was really worried about the impact. I think 4.3% of total revenues still manageable. However still a bit of pain for management to exit this area. Haizzzz

Shall wait for 1H2014 results to see the full damage, dunno if got other costs or not.. like ending the leases, getting rid of the staffs etc

[CityFarmer]

To date in Singapore, the Group has a total of 40 stores comprising one flagship
Challenger megastore, 22 Challenger superstores, 10mini stores, five Valore concept
stores and two Musica concept stores. In Malaysia,the Group operates one flagship
Challenger megastore and two Challenger superstores

If they wind down the 3 Msia stores, is it fair to say that maybe 10-15% of total revenues will be impacted?

Base on FY13 breakdown, it might be a minor impact, approx 4% of revenue.

The overall revenue was 385 mil, while M'sia contributed only 16 mil, while Singapore contributed 369 mil.

[felixleong]

To date in Singapore, the Group has a total of 40 stores comprising one flagship
Challenger megastore, 22 Challenger superstores, 10mini stores, five Valore concept
stores and two Musica concept stores. In Malaysia,the Group operates one flagship
Challenger megastore and two Challenger superstores

If they wind down the 3 Msia stores, is it fair to say that maybe 10-15% of total revenues will be impacted?

Base on FY13 breakdown, it might be a minor impact, approx 4% of revenue.

The overall revenue was 385 mil, while M'sia contributed only 16 mil, while Singapore contributed 369 mil.

Thanks for the info and ya, I think really need to review the fundamentals of this company~

[CityFarmer]

Shall wait for 1H2014 results to see the full damage, dunno if got other costs or not.. like ending the leases, getting rid of the staffs etc

IMO, the M'sia operation seemed already in winding down mode, since FY2012. During FY12-FY13, The number of M'sia stores reduced from 4 to 3, but Singapore stores increased from 29 to 40

So the winding down cost should be minimum, IMO.

(vested)