PPB GROUP Bhd’s film exhibition and distribution segment has come under the scrutiny of the Minority Shareholders Watch Group (MSWG) in view of its shrinking revenue with cinema closures during the movement control order (MCO) period and continuing uncertainty surrounding the re-opening of cinemas amid reduced operating capacity.
With cinemas allowed to re-open on March 5 at 50% seating capacity, the shareholder activism group is keen to know if there were signs of pent-up demand for watching movies at PPB Group’s GSC cinemas following the easing of MCO restrictions and the planned roll-out of vaccines.
“With the film exhibition and distribution segment posting a loss of RM135.6 mil in FY2020, does the company expect this segment to break-even in FY2021?” asked MSWG which further noted that PPB Group’s revenue was 11% lower year-on-year at RM4.19 bil in FY2020 (FY2019: RM4.68 bil).
PPB will stage its 52nd annual general meeting (AGM) virtually from its broadcast centre at Shangri-La Hotel Kuala Lumpur on May 11 (Tuesday) at 10am.
In a related development, MSWG also quizzed PPB Group on its agreement to acquire cinema assets from the former operators of the MBO cinema circuit in February this year. The asset acquisition is targeted to be completed by end-June.
“What is the payback period for the above investment? What is PPB Group’s expectation from this acquisition in terms of financial contribution? What is the company’s plans and strategies for MBO cinema?” asked the shareholder activism group.
Elsewhere, MSWG also queried MMC Corporation Bhd with regard to its accumulated impairment losses on other receivables that has ballooned to RM200.7 mil in FY2020 (FY2019: RM92.6 million).
“What were the reasons for the high impairment losses on other receivables? What was the nature of these impairment losses and what actions have been taken to recover the said amount?” asked MSWG.
On the same note, the shareholder activism group also wanted to know percentage of impairment losses of RM200.7 mil that is expected to be uncollectable.
“To which business segment does the impaired other receivables relate to? How much of the impaired other receivables have been recovered to-date?” asked MSWG.
MMC Corp will stage its 45th AGM at its head office in Wisma Budiman, Kuala Lumpur on May 10 (Monday) at 10am. – May 7, 2021
