Periodic disclosures – quarterly report
To what extend must a listed issuer's board of directors comment on the listed issuer's prospects in the quarterly report pursuant to paragraph 3 of the Appendix 9B of the Main LR5?
In commenting on the
listed issuer’s prospects under paragraph 3 of Appendix 9B of the Main LR, the
board of directors must discuss in detail the prospects on each segmented
activities and the material factors that are likely to influence the listed
issuer’s prospects for the remaining period of the financial year. The
commentary should include -
the prospects of each
of the group's business segments, including contracts at hand, tender book
value, competitive challenges, customers' trend and supply constraint;
significant changes in raw material costs and selling prices affecting demand and profit margins;
financial impact arising from currency fluctuation and steps taken to mitigate such fluctuation;
changes in product or
service mix and their impact on profit margin;
financial impact from
recently completed acquisition, disposal or merger;
new regulations or
rules which may affect the group's operating activities; or
any changes in
business direction or new development of the group which may have an impact on
the prospects of any business segment.
A general statement such
as the board is optimistic of achieving better performance for the financial
year or the board expects the group’s results for the remaining period to be
profitable, without discussing the above matters is not acceptable.
3 of Appendix 9B of the Main LR, among others, requires a listed issuer to
provide in its quarterly report, a commentary on the prospects, including the
factors that are likely to influence the listed issuer’s prospects for the
remaining period to the end of the financial year or the next financial year if
the reporting period is the last quarter.