PHARMANIAGA 25TH ANNUAL GENERAL MEETING OF PHARMANIAGA BERHAD Post-Submitted Questions from Shareholders as of 12 June 2023 (109 questions as at 12 June 2023)
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BUSINESS REVIEW (Question 1-9)
CHAN BIEN CHYE (Question 1-2)
1. What is the finding on root cause, control process and plan moving forward to manage supply chain and inventory management to avoid future significant write off that affect the company financial greatly? What about competent management in this regard?
Answer: Pharmaniaga established Board Risk and Investment Committee (BRIC) to oversee the adequacy of risk management within the Group and to ensure that risk exposures and outcomes affecting Pharmaniaga are effectively addressed. This includes formulating policies and frameworks to identify, monitor, manage, and control material risks impacting the Group, to safeguard the Group's interests and enhance shareholders' value.
2. Please provide recent 5 years of financial result of those companies purchased in recent years to see how they fared so far and contribute to the group
Answer: We did not acquire any company in the last five years.
LEE MUN HOE (Question 3 to 5)
3. Aside from Pharmaniaga, other industry peers also faced similar situation?
Answer: | Yes. There is a global surplus of COVID-19 vaccines. |
4. | How about the company cash flow level? |
Answer: | Although the operation continues with business as usual, the Group's |
cash flow is constrained. Nevertheless, we are closely monitoring our | |
cash flow, maintaining strong relationships with financial lenders and | |
suppliers, and implementing prudent financial management practices. | |
These practices include, but are not limited to, implementing cost- | |
reduction measures, improving working capital management, and | |
seeking additional funding. |
5. Which segment make profit and which area making lost?
Answer:
LIM SAN KIM (Question 6 - 8)
6. Which segment make profit and which area making lost?
Answer: All segments made profits except for the manufacturing and Indonesian segments, where we made provisions for slow-moving
COVID-19 vaccines worth RM552.3 million and also impairment of goodwill worth RM50.3 million respectively.
7. How much profit this year, when to pay dividend?
Answer: We are not in a position to disclose the profit forecast for the current year. Furthermore, the Group foresees that it will not be feasible to declare any dividends at this juncture.
8. How much business is currently in the order book, and what is the expected volume for the coming year?
Answer: We are not in the position to disclose our business order book.
MUHAMMAD HARIZ BIN SA'ID
9. Considering the growing importance of the biologics sector in the pharmaceutical industry, how does Pharmaniaga assess its financial position and level of confidence in capitalising on opportunities within the biologics market?
Answer: The decision to enter the biopharma sector was made after conducting a comprehensive feasibility study, which included an assessment of market demand, competition, and opportunities. Pharmaniaga is confident in the potential for future growth in this sector.
PN17 (Question 10-13)
KOW LIH SHI (Question 10-11)
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The overall company operations are expanding, including auto vending for medical supplies and self-purchase options.
What is the estimated timeframe for being released from PN17? Thank you to the board and members for answering questions. - The company's business operations are in an expanding stage, including the operation of vending machines for self- purchasing medicines and supplements.
What is the estimated time period required for the company to be released from PN17?
Thank you to the board and members for answering questions.
Answer The Regularisation Plan is currently being drafted, and a requisite
for announcement will be made in due course, detailing the plan. The Question Group aims to complete the execution of the Regularisation Plan by 10 & 11: the end of the first quarter of 2024.
HARIZA BINTI ISMAIL
12. By the wise word of Bill Gates, what is the utmost reason for plunging into PN17?
Answer: As a result of the slow moving of the COVID-19 vaccines stocks and in line with the Malaysia Financial Reporting Standards,
Pharmaniaga had to make a full provision of RM552 million of COVID-19 vaccines stocks.
CHAN NGUN FONG
13. The Board should also propose to cut meeting allowances since the Company is in PN17 status. The Company is not in a position to give us door gifts, so why is the Company in the position to pay meeting allowances to the Directors? In addition, you are also getting a myriad of other benefits. Please explain. Don't brush this question aside.
Answer: The Directors' Remuneration is outlined in our Directors Remuneration Policy and is in line with the best practice provisions of the Malaysian Code of Corporate Governance.
COVID-19 VACCINE (QUESTION 16 & 27)
LEE MUN HOE
- If management/auditor were aware of the consequences of over-purchasingCOVID-19 vaccines prior to Q4 2022?
- Why auditor fail to identify any red flags arises from over purchase of Covid 19 vaccines prior to Q4 2022?
Answer for Question
16 & 17:
During the AGM, the auditor has explained that the issue of the slow- moving COVID-19 vaccine has been discussed with the Group since July 2022. Despite great efforts to resolve the issue, the Board has to eventually allocate a provision of RM552.3 million for the inventory in February 2023, a decision which the auditor agreed and supported.
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Pharmaniaga Bhd published this content on 26 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2023 00:37:06 UTC.
