English

10 August 2018

MSWG’S QUICK TAKE ON-ONGOING CORPORATE DEVELOPMENTS

PERAK CORPORATION BERHAD (“PCB”)

PCB announced that Animation Theme Park Sdn Bhd (“ATP”), an indirect 51%-owned subsidiary of the Company, has officially discontinued the License Agreement dated 1 January 2013, as amended, (“License Agreement”) entered with DreamWorks Animation L.L.C. (“DreamWorks”) for the establishment and operation of DreamWorks’ attractions within the Movie Animation Park Studios (“MAPS”) effective 1 August 2018.

The reason for the discontinuance being ATP and DreamWorks have not reached an agreement to open the DreamWorks’ attractions to public by 1 August 2018. ATP has the option to extend the License Agreement to 30 September 2018 but decided not to exercise the option in order to accelerate the full opening of the MAPS as soon as possible

Based on the audited financial statements of ATP for the financial year ended 31 December 2017, the related intellectual properties rights acquired under the License Agreement which are classified as intangible assets has a carrying value of RM17.461 million. This amount together with the related inventories and estimated DreamWorks’ attractions development in progress cost of RM15.735 million will be written off in the current financial year.

The Board of Directors of PCB is of the opinion that the decision was made in the best interest of ATP, to ensure its ability to continue to operate as a going concern, and the Group.

03 August 2018

MESSAGE FROM THE CEO

Material deviations between audited and unaudited financial statements for a financial year end must be sanctioned more severely by Bursa Malaysia. Often, they come as a rude shock to investors.

Investors often make their investment decisions based on the unaudited quarterly results.

So, when quarterly results paint one picture and the actual audited results are another, investors are in for material movement in share prices. Investors expect the quarterly results to have some degree of integrity.

The Listing Requirements state that a variance of more than 10% is deemed material and requires the  company to make an announcement along with the reasons for the variance.

Asdion Berhad, on 31 July 2018, reported a deviation of more than 10% (in fact, a deviation of 107.55%) between the unaudited financial statements for the financial year ended 31 March 2018 and the audited financial statements for the financial year ended 31 March 2018.