The 15th Shareholders' General Meeting

Yesterday (6/22) is JAKS annual shareholders meeting, in its [EVOLVE] mall held. For a controversial and discussed company, this page certainly can not miss. More than 100 shareholders attended the conference, of which about 29% of the shares of the company and his wife also attended the high-profile, sitting in the first row of the front row.

At present, most of JAKS's construction works are progressing well, one of which has been completed. As for the Vietnamese power plant with a total value of USD 454m (RM1.9b), the Group has listed approximately RM210m in the past two years and the remaining RM1.7b will be gradually listed in the next three years, and the income will peak 2018 - 2019 years. The power plant works for 20% and is still in its infancy and is expected to earn RM50-80m this year. This is a very critical revenue for JAKS, which lacks stability in previous earnings.

However, the Group's performance is also largely dependent on [EVOLVE] the performance of the mall. Its industry development department in the FY16 suffered RM36.7m pre-tax losses. At present, the management is still looking for potential buyers to sell [EVOLVE] shopping malls. JAKS had a former buyer with a potential buyer in Singapore at the end of the negotiations, but the slowdown in the retail market led to the suspension of the negotiations. Management said that the original decision to build [EVOLVE] shopping malls, mainly because of this location near the LRT and the highway. Since now has completed the construction, only to do the best efforts to do a good job shopping malls. This area of ​​the mall is not only [EVOLVE] poor performance, others such as [CITTA], [PARADIGM] and [EMPIRE] performance is the case.

In the question and answer session, Mr. Koon first expressed his dissatisfaction with JAKS's private placement plan this year. At that time the market's investment sentiment, why the group is also willing to sell to a third party at a discount? Management said the shares were sold to investment institutions and funds, mainly using the 5-day market average price to calculate the price of RM1.40, followed by a 3% discount.

After that, Mr. Koon gave the management advice, said he was IJM, GAMUDA and MUDAJAYA founder, in the field of construction has more than 50 years of experience. Basically, most of the world's construction projects can not be completed on time, all need to extend the time to complete. Since JAKS has a number of ongoing construction projects, why should we bid so many projects? It is better to focus on the completion of time, to improve the construction profits, and clean up all the compensation and provision should not have (clean up all the shit).

JAKS made RM11m compensation for Liquidated & Ascertained Damage for the PJ's [THE STAR] project in the fourth quarter of last year. The total development of this project is RM1b, which was originally expected to be completed by the end of 2016. However, due to some accidents in the project, this resulted in the project being expected to be delayed until the end of 2017. Management is still expected to have RM15-20m engineering delay compensation will be levied. Strange is why the shareholders present are not responding The

The management responded to Mr. Koon's view. JAKS had two projects in Pahang and Sarawak earlier completed and delivered. As for projects that could not be expected to be completed, this was mainly due to the fact that the Government had repeatedly extended land acquisition and compensation and had nothing to do with JAKS's ability to perform. The government also approved JAKS to extend the completion date by an additional 380-400 days. In addition, the Government has returned the RM7m project delay compensation to JAKS, which will be reflected in the performance of the next quarter.

Finally, there are shareholders who propose to enter the board of directors, Mr. Koon is experienced veteran, can provide management for the very valuable advice. In fact, as a single major shareholder of the official has been willing to enter the board, had earlier for this matter privately e-mail to JAKS executive director MR. ANG, but not the latter's reply. It is not difficult to understand, after all, MR.ANG recently frequently recalled from the open market JAKS stock, I believe in order to safeguard their own interests. Perhaps the management has no intention to allow Mr. Guan to enter the board of directors to avoid the latter's interference in the Group's business decisions.

"You can go to the board through the Special Shareholders' General Meeting (EGM) and the correct procedures and procedures, unless any of you can buy more shares than I am," he said. There is a group to support my investors. "Finally, he also stressed that he has more than 80 years old, not in the name of the individual to enter the board, but named a suitable candidate for this position. JAKS's directors need to re-shuffle, the directors of the group did not contribute to the directors kicked out of the board.

As a result, the final resolution of the resolution showed that 46% of the shareholders who had re-let the directors enter the board of directors were opposed by up to 129m. The other resolutions were approved by 99% of the shareholders. If you do not infer the wrong, with such a large stock of shareholders in addition to Mr. Koon and his wife, no other people.

Overall, the management showed the wisdom of the side, one by one to answer the shareholders for business problems. However, there is a shareholder deliberately make things difficult for management, the proposed dissatisfaction are focused on the small details. He said that the RM25 food vouchers given by the management were not enough to get out of him, and that there was more demand for more cash vouchers. He also complained that some of the food stalls in the mall had not been opened after 10 o'clock, leading him to the breakfast he could not have breakfast. "When I am hungry, then I will be very angry". The management seemed a bit helpless, the chairman repeatedly interrupted the conversation of the shareholders, and said the transfer of the topic back to the company's business.

To be sure, Mr. Yukang insisted on entering the board, I believe this is unavoidable, after all, most of the shareholders who are present to support Mr. Guan. The future, the management of every move is certainly much attention, not easy when ah!

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