Financial Year 2024 Material Variances and Key Actions for Aspen (Group) Holdings Limited

Key Facts from the Report:

1. Report Date and Fiscal Year: The report is dated October 7, 2024, covering the financial year ending June 30, 2024.

2. Material Variances:

   • The report outlines material variances between the audited and unaudited financial statements for FY2024, primarily resulting from changes in presentation within the financial statements.
   • Trade and Other Payables:
     • Audited: RM 369.7 million
     • Unaudited: RM 409.7 million
     • Variance: (RM 40 million) due to the “Provision for Litigation Settlement” being separated from “Trade and Other Payables.”
   • Provision for Litigation Settlement: Newly presented in the audited statements as RM 40 million.
   • Other Income (Continuing Operations):
     • Audited: RM 7.63 million
     • Unaudited: RM 103.7 million
     • Variance: (RM 96.1 million) due to the gain on the deconsolidation of a subsidiary now presented as “Gain from Discontinued Operations.”
   • Gain/(Loss) from Discontinued Operation (Net of Tax):
     • Audited: RM 92.7 million
     • Unaudited: (RM 3.35 million)
     • Variance: RM 96.1 million, reflecting the change in presentation.
   • Net Cash from Operating Activities: Minimal variance of RM 142,000, which is not considered material.
   • Investing and Financing Activities: Variances due to changes in how certain items are presented.

3. Profitability: Despite the changes in presentation, the company’s consolidated profit for FY2024 remains at RM 32.3 million, as previously announced.

4. Dividend Information: The report does not mention any dividends being distributed for FY2024.

Notable Points for Investors:

• The company made significant changes in the presentation of its financial statements, especially regarding the gain on the deconsolidation of a subsidiary.
• There was a provision for litigation settlement amounting to RM 40 million, which could indicate a potential legal risk or cost that investors should note.
• Despite the variances, there is no impact on the consolidated profit, which remains stable at RM 32.3 million.

Special Actions to Improve Profitability:

• The report does not specifically mention any new actions the company is taking to improve profitability other than the restatement and changes in financial presentation.

Recommendations:

• For Current Investors:
  • The restatement indicates a more transparent presentation of the financial statements. However, the inclusion of a litigation settlement provision suggests caution. Investors currently holding the stock may consider monitoring the company’s announcements for any further legal or financial implications related to this provision.
• For Potential Investors:
  • Given the company’s stable consolidated profit and the transparent approach in its financial restatements, it might be worth considering as a potential investment. However, due diligence regarding the litigation settlement is advised.

Disclaimer:

• The above recommendations are based on the provided report and do not constitute financial advice. Investors should consider their own risk tolerance and seek professional financial consultation before making investment decisions.