Posted by Sslee > 3 days ago | Report Abuse

From Q4 FY 2023 quarterly report:
Lease liabilities
The lease liabilities amounting to RM 18.7 billion includes deferred aircraft leases of approximately RM 2.3 billion. The lease liabilities are supported by ROU assets of RM 12.1 billion.
The Group had completed the restructuring of a total of 161 aircraft leases up to the date of this report including the waiver of lease rentals in arrears, as well as reducing future lease rates with a corresponding longer lease term, where necessary, and return of aircraft.

Question 14: BOD currently the Group has how many aircraft lessors? Will BOD kindly list down the aircraft lessors/lease companies the amount: lease liabilities owed, lease deferred, lease rental in arrear waive, future lease rate reduce with corresponding longer lease term and return of aircraft?

Question 15: BOD any management or BOD team member/members has/have direct or indirect vested interest in The Group’s aircraft lessors/lease companies?

Page 40: Funding
The Group is currently engaging in discussion with lenders at different stages for debt and equity fundraising, with an estimated amount of RM3 billion. As at the date of this report, the Group has received commitment from investors for a Revenue Bond Program of up to USD365 million (equivalent to RM1.68 billion)
The Revenue Bond program entails the conversion of outstanding lease payments of USD240 million (approximately RM1.1 billion) into bond (Tranche 1) and cash inflow of approximately USD125 million (approximately RM575 million) (Tranche 2) to finance working capital, maintenance cost and lease rentals. The revenue bond will be secured against passenger seat sales from identified routes and shares in a subsidiary. Tranche 1 of the Revenue Bond has a tenure of 2.5 years whereas Tranche 2 has tenure of 4 years. The bond is expected to be issued by mid of 2024.

Question 16: BOD what are the reasons aircraft lease companies/lessors demand for the conversion of outstanding lease payments of USD240 million (approximately RM1.1 billion) into bond (Tranche 1)?

Page 13: Going Concern Assessment;
Quote, “Critical to the going concern assessment are the Directors’ expectations of continuous support from the Group’s aircraft lessors” unquote

Question 17: BOD is the move by lessors for the conversion of outstanding lease payments of USD240 million (approximately RM1.1 billion) into bond (Tranche 1) a sign of lessors losing their confidence in the Group ability to pay the outstanding lease payment?

Referring below Q1 2023 presentation
Well positioned for growth with a total of 362 aircraft in order book to be delivered in the next 12 years. 73 aircraft have already been secured financing through Sales and Leaseback (SLB) arrangements with several lessors.

Question 18: BOD what is the latest status on the above?

Posted by ken2004 > 3 days ago | Report Abuse

The attractive part on airlines is they earn billions which make people think even if you owe billions also one day you should be able to repay or recover............that potential is there as long you still run your business, not close down..........

Posted by ken2004 > 3 days ago | Report Abuse

LOL, respect really, maybe for interest else i really don't bother do such analyses, will move on to other better stock........

Posted by Sslee > 3 days ago | Report Abuse

cash generated from operating activities 789m compared to 528m increase by 49%; EBITDA of 1billion compared to 0.5billion, increase by 100%.... pretty impressive overall... on the road to recovery :-)

Are you sure?

Referring: under MFRS 16:
(i) On the Consolidated Income Statement, expenses which were previously included under aircraft operating leases will be replaced by finance costs – lease liabilities and depreciation of right of use asset;
(ii) On the Consolidated Cash Flow Statement, operating lease rental outflows, previously recorded within net cash flow from operating activities, are classified as “net cash flow used in financing activities” for repayment of principal of lease liabilities.

The Late Charlie Munger's Best Quote “I think that, every time you saw the word EBITDA", you should substitute the word "bulls**t" earnings.”

Question 7: External Auditor can you please explain what Charlie Munger is trying to say on EBITDA?

Question 8: BOD why every quarter presented the beautiful EBITDA figure without stating “under MFRS 16: On the Consolidated Income Statement, expenses which were previously included under aircraft operating leases will be replaced by finance costs – lease liabilities and depreciation of right of use asset”

Page 12: External Auditor Going Concern Assessment:
Quote, “The Group reported a loss for the year of RM 96 million whilst the Company reported a loss for the year of RM 1,960 million, for the financial year ended 31 December 2023. The group and the Company reported net operating cash flow of RM 1,413 million and RM 72 million respectively. As at 31 December 2023, the group current liabilities exceed its current assets by RM 12,699 million. In addition, as at 31 December 2023, the Group reported a negative shareholders’ funds of RM 8,762 million.” unquote

Question 9: External Auditor if total cash outflows for leases RM 2,045 million under financing activities is moved back to previously recorded within net cash flow from operating activities what will be FYE2023 net operating cash flow?

Question 10: External Auditor, from Sales in advance: RM 2,025,298,000, Proceeds from borrowings: RM 1,273,030,000 yet The Group only managed payment of lease liabilities: RM 2,045,816,000 which is far off the amount of current lease liabilities reported at FYE 2022 RM 4,340,844,000. What happens to the unpaid FYE 2022 current lease liabilities?

“Going Concern Assessment” (Refer page 12-13).
Quote, “Management had prepared a cash flow forecast as part of the assessment on whether the Group and the company will be able to continue as a going concern.” Unquote

Question 11: BOD, FYE 2023 current lease liabilities is RM 5,438,692,000. What were the projected FY 2024 total amount (lease) recognised in profit or loss and amount payment of lease liabilities in cash flow from financing activities?

Question 12: External Auditor looking back on FYE 2022 Management cash flow forecast on going concern is that cash flow forecast fulfilled as at FYE 2023 audited financial result?

Question 13: External Auditors if FYE 2022 Management cash flow forecast is far off the mark as per actual achieved then as at 31 December 2023, the group current liabilities exceed its current assets by RM 12,699 million. Are Auditors satisfied and confident with management's cash flow forecast for year 2024 that the group will not default on the net current liabilities of RM 12,699 million?

Posted by ken2004 > 3 days ago | Report Abuse

More interested to know, tomorrow will limit down then since in red now? get ready to collect in low? lol

Posted by sell > 3 days ago | Report Abuse

NTA RM -2.11 getting worse or worst ever.

Posted by raymondroy > 3 days ago | Report Abuse

ok ok putting all these numbers, and lease liabilities etc etc...... AA is the best low budget airlines in the world, I have many options to choose for flights, but end up with AA as its cheap :-) LOL .... and service is not all that bad (what do you expect if paying cheap, as long as plane dont fall off sky)..... covid put a spanner into AA works, and today they are recovering..... travel is booming, airports printing money (recently Khazanah, EPF, GIP, ADAI made general offer for MAHB - what does it say??) and banks are lining up to provide financing what else as an investor do you need ??? But I will agree that "time" is the cost here..... shd I put my money in AA or YTLP (LOL).... which will give me the expected returns over "time" as recovery takes "time" and do you have the "time".... sometimes I wish there was a price for time..... as then I can "buy" time..... p/s :buying time-telekom is not the same:-) cheers.....

Posted by Anw412 > 3 days ago | Report Abuse

PN17 almost over for Cap A. After all the corporate exercise is done, funds will start pouring in as Cap A is no longer considered the affected issuer. long term investor wont just sell since they're looking forward since last year for CapA to resolve this PN17. Good luck to those looking to buy cheap!

Posted by Stocks888 > 3 days ago | Report Abuse

ohhhhh nooooooo ！！！ Today just buying 402,000 shares…. Ohhh my gooodddd

Posted by The_JQuestion > 3 days ago | Report Abuse

sslee think he smarter than BOA and Airbus... Maybe they know whr the money is and he doesnt??? somebody need HELP , this QR already reflect how the next QR will look like... if drop = BUY MORE im ready hehe

Posted by The_JQuestion > 3 days ago | Report Abuse

Record-breaking quarter despite only operating 78% of total fleet:
Revenue exceeds RM5.2 billion
Over RM1 billion EBITDA
Net Operating Profit of RM305 million
Capital A non-aviation businesses contributes over RM620 million or 12% to total Group revenue with EBITDA margin of 13%
enough said.

Posted by Junx Leow > 3 days ago | Report Abuse

Bad one already is bad, good one probably won't be bad......Probably June to make salted fish to fly again

Posted by Why_ > 3 days ago | Report Abuse

QR loss despite revenue high?

Posted by mf > 3 days ago | Report Abuse

Dow Jones

Dow Jones Industrial Average

38,531.99

-320.87

0.82%

Nasdaq

NASDAQ Composite

16,954.56

-65.32

0.38%

Posted by nich0las > 3 days ago | Report Abuse

During the period ended 31 March 2024, the Group acquired property, plant and
equipment with a total cost of RM82 Million (period ended 31 March 2023: RM33.4
million).
The acquisition is mainly for the expansion of hangars of ADE.

Posted by Sslee > 2 days ago | Report Abuse

Moving into the second quarter, Capital A expects the aviation industry to see stable demand after the peak travel season.

If you can't make money during peak travel season what hope do you have when it come to off peak season?

Posted by Johnchew5 > 2 days ago | Report Abuse

Hoho let’s learn from sslee … why you dumb dumb hold Xingquin even you knew is in Account Fraud until Delisted ? What are you hoping for at that Time ???

Posted by Anw412 > 2 days ago | Report Abuse

Post disposal of aviation biz to AAX, Cap A can expect a more stable revenue of 500-600M every quarter with a roughly 50-60 million of profits. that would be quite impressive. if all of tony's plan went smoothly. CapA shareholders can expect :
1. to own shares in newco with aviation pure play biz.
2. a profitable non-aviation biz in Cap A post disposal. ADE will become major MRO player in this region with growing numbers of aircraft to serve. Teleport can replicate what we see in FeDex/DHL and become top of ASEAN player. MOVE & BigPay will grow in tandem with passenger growth and at certain point will be profitable as well.

3. CAPI listing in NASDAQ if really happen will be a major boost for Air Asia/CapA brand and generate interest for their aviation consultation biz.

4. With more than 400 new-type of aircraft bookings we can look forward to see a bigger aviation giant with more manageable and sustainable low cost carrier.

for more to come, lets hope everything went smoothly for them. losing Air Asia is not an option for us Malaysians. cheers!
3.

Posted by Sslee > 2 days ago | Report Abuse

Referring recent announcement of divestment of The Group aviation to AAX
https://theedgemalaysia.com/node/709489
The divestment of AirAsia Aviation Group Ltd (AAAGL) is expected to give rise to a pro forma gain of RM4.69 billion to Capital A, while the disposal of AirAsia Bhd (AAB) would result in a gain of RM6.07 billion

I’m afraid the deal is a zero sum game. What The Group gains is AAX losses: AAX after the acquisition of AAAGL and AAB the total borrowing and lease liabilities is RM 23,271,794,000 gearing 23.96 times.

Question 32: External Auditor what is the likelihood that AAX/New Aviation Group default on payment on current liabilities: Lease liabilities, borrowing, aircraft maintenance, trade and other payables, etc?

Question 33: Company Secretary If a default happens; will the BOD of both CapitalA and AAX end up in jail for offences of Wrongful/Fraudulent trading under Company Act 2016 section 540 and Section 539?

Wrongful Trading
In the CA 2016, an offence of wrongful trading is captured in section 539(3) that:
“…an officer of the company who knowingly was a party to the contracting of a debt had, at the time the debt was contracted, no reasonable or probable ground of expectation, after taking into consideration the other liabilities, if any, of the company at the time, of the company being able to pay the debt, commits an offence…”

Fraudulent Trading
Whereas section 540(1) of the CA 2016 stipulates an offence of fraudulent trading as below:
“If it appears…that any business of the company has been carried on with intent to defraud the creditors of the company or creditors of any other person or for any fraudulent purpose, the Court may declare that any person who was knowingly a party to the carrying on of the business in that manner shall be personally responsible…”

If an offence under section 539(3) has been made out, offenders may be punishable with a maximum imprisonment of 5 years or a maximum fine of RM500,000, or both. Reading together with section 540 of the CA 2016, it is added that the offender may even bear personal liabilities for the payment of the whole or any part of the company’s debt without any limitation of liability upon a court’s declaration

Posted by Sslee > 2 days ago | Report Abuse

Question 34: If capital A needs to be delisted from Bursa to get more time and space to do a proper capital-raising and restructuring plan and relist in the future, will BOD do so rather than a rush job that might land everyone in a bad place?

Posted by Sslee > 2 days ago | Report Abuse

Mode of settlement of the Transaction Consideration
The Transaction Consideration will be satisfied via a combination of the following:
(a) the issuance of USD1 billion of new ordinary shares of CAPI (“CAPI Shares”)
(“Consideration Shares”) to the Company;

(b) the assumption of a term loan of USD150 million (equivalent to approximately
RM710 million) provided by Lender A (“Loan”) to be novated from Asia Aviation
Capital Limited (Labuan) (“AACL”), an indirect wholly-owned subsidiary of the
Company and the original borrower of the Loan, to Brand AA (“Loan
Novation”). Capital A is in the midst of obtaining the approval from the facility
agent of the Loan for the Loan Novation.

Capital A International (CAPI) and others
CAPI reported a total revenue of RM59.4 million and an EBITDA of RM34.5 million for
1Q2024. The revenue of CAPI was driven mainly by brand licensing fees from Aviation
and related parties, while the operating expenses were mainly related to staff cost and
other operating expenses of CAPI, Capital A Berhad and RedBeat Academy.

With EBITDA of RM34.5 million per quarter. Is it enough to pay the interest payment and principal repayment of USD 150 million loan?
Do you think CAPI can be listed in Nasdaq for valuation of USD 1 billion?

Posted by Anw412 > 2 days ago | Report Abuse

Post restructuring and debt consolidation i would like to compare CapA (non aviation) with MISC since they both have identical nosh and profit margin.

CAP A : Nosh 4225M, Rev 650M, PM 13%

MISC : Nosh 4463M, Rev 4.3B, P 627M PM(15%)

Personally it make sense for me to keep buying/hold this counter.

Posted by Stocks888 > 2 days ago | Report Abuse

Nasib Baik jatuh 1 sen only when open…

Posted by EatCoconutCanWin > 2 days ago | Report Abuse

For normal company, it surely earn money. This company hard to manage their financial issues. Add to buy if drop, as we gave chance to weak management to recover

Posted by EatCoconutCanWin > 2 days ago | Report Abuse

Better split 1:5 stock. So the capital a price go up from 80sen to 4.00dolar

Posted by 80gram > 2 days ago | Report Abuse

RM5bn revenue a quarter...How many companies in Malaysia can do that?

Posted by Income > 2 days ago | Report Abuse

低于预期

Posted by Pakcik Kiah > 2 days ago | Report Abuse

Revenue increase but with a net loss of 91 million due to forex losses. What a screw up? Somethings not right when most aviation industries are doing well.

Posted by paulthesotong > 2 days ago | Report Abuse

Meet The Press
https://www.capitala.com/misc/1Q24-presentation-capitala.pdf

Posted by Johnchew5 > 2 days ago | Report Abuse

Hoho why ? You loss until posted yr wifey ran away with man …

Now wear panttiees posted want to live together with Lee Tikus ( in Insas ) in Indonesia palm oil forest ke … hohoho


—
Posted by Income > 19 minutes ago | Report Abuse

低于预期

Posted by ken2004 > 2 days ago | Report Abuse

All should know they have massive debts, so surely cannot be all those debts just overwrite like that, so most likely their earning also need to pay up those debts which to their debtors, they won't push this till close shop as long as there is ongoing payment......

Posted by Sslee > 2 days ago | Report Abuse

If you not yet noticed:
Net current liabilities is now RM (12,923,931,000)

Posted by ken2004 > 2 days ago | Report Abuse

Maybe in simple calculation, you need to earn billions in order to pay up billions debts, so if you earn millions but billions debts then this is trouble..........

Posted by raymondroy > 2 days ago | Report Abuse

Check out the Corp Proposal : The buyer — AirAsia Group or NewCo — will take over the listing status of AAX, and hence hold both the acquired AirAsia operations, and the long haul business currently under AAX. Capital A has also proposed to distribute 73.33% of the NewCo shares to its shareholders via capital reduction (RM2.2 billion worth, based on transaction price of RM1.30 apiece). So there will be capital reduction.
An entitled Capital A shareholder would receive up to 397 NewCo shares for each 1,000 Capital A shares held, depending on Capital A’s shares based on the entitlement date. Capital A plans to obtain Bursa Securities approval for the sale of its aviation business in June, and to announce its Practice Note 17 (PN17) regularisation plan that same month. ...... I just wonder what will be CapA's revenue and business model moving ahead then, since it has sold off its business to NewCo? Hmmm..... perhaps just div income? I guess just need to wait till june to find out....

Posted by Sslee > 2 days ago | Report Abuse

Posted by geary > May 30, 2024 5:12 PM | Report Abuse
Relevant Liabilities concerning AAX(Solved) n CapitalA (Ongoing)

AAX solved by debts restructure paying 0.5 sen for every Ringgit owned, capital reduction, share consolidation 10 to 1 and capital injection PP.

CapitalA(Ongoing) how without a debts restructure (lessors, bankers and creditors and etc haircut) and capital injection?

By magic of tranfering all debts/liabilities to AAX/NewCo then capitalA solved?

Posted by Mabel > 2 days ago | Report Abuse

This is the captain, We have returned to core profitability!

After more than 4 years of continuous core losses, CAPITALA returned to core profitability in 1Q24 or 2 quarters earlier than we expected. The outperformance was largely due to higher-than-expected average fares driven by visa free travel to and from China and India. We raise FY24E/FY25E/FY26E core net profit by MYR384m/MYR143m/MYR143m and our SOP-TP to MYR1.00 from MYR0.94. On another note, CAPITALA ought to have its PN17 classification lifted in 4Q24/1Q25.

Message from Tony...

Source: Mabel's Tiger Bank

Posted by geary > 2 days ago | Report Abuse

"Capital A is the first in the world to grow from an airline into five verticals of strong aviation-led businesses. Our immediate strategy now focuses on delivering shareholder value, getting the right organisation structure, and doubling down on our low-cost DNA across the ecosystem. Additionally, we are committed to maximising ecosystem synergies to enhance our performance and create sustainable growth."

"So the next six months will be the defining period for Capital A as we execute our strategic initiatives to address challenges and seize exciting opportunities. At the end of this period, I believe we will have delivered an amazing turnaround - emerging stronger with two strong groups of businesses with immense potential and transformative value creation for our stakeholders."
Tony Fernandez.
CapitalA 200SMA PIVOT Point Momentum!
S1: 0.75.
PIVOT: 0.83.
R1: 0.97.
R2: 1.20.
R3: 1.57.
R4: 1.80.
Mr. Market is Unpredictable!
Dis: Trade at your own Risk!

Posted by geary > 2 days ago | Report Abuse

AirAsia Newsroom:
CAPITAL A FINANCIAL RESULTS FIRST QUARTER 2024
May 29, 2024 Nur Alya Zulaikha Khairon Anuar -

1. Record-breaking quarter despite only operating 78% of total fleet.(Operating 90% of total fleet, reasonable target).

2. Revenue exceeds RM5.2 billion(Will increase to RM 5.8 billion).

3. Over RM1 billion EBITDA(Increas by 12%).

4. Net Operating Profit of RM305 million(Up by 12%; if lower Jet Fuel n weaker USD, Up 18%).

5. Capital A non-aviation businesses contributes over RM620 million or 12% to total Group revenue with EBITDA margin of 13%(Teleport, ADE, Santan n AirAsia MOVE, revenue will go up at least 10/15% YOY.).
Hurray...after 200 days...We are running to our banks...very soon...🤓

Posted by Mabel > 2 days ago | Report Abuse

Wow soon Mabel can change name from Mabel Meow to Mabel Rich... Hihihi..

To Our Success

Meow Meow Meow

Posted by Sslee > 1 day ago | Report Abuse

No wonder The Late Charlie Munger's Best Quote “I think that, every time you saw the word EBITDA", you should substitute the word "bulls**t" earnings.”

Know what is capitalA aircraft lease payment and financial cost per quarter?
3. Over RM1 billion EBITDA(Increas by 12%).

Posted by xiaoeh > 1 day ago | Report Abuse

Captain Mabel
how high can CapA go...?

Posted by paulthesotong > 1 day ago | Report Abuse

At least Mr T have the routes to fly high higher highest within 5 yrs.

Posted by Sslee > 1 day ago | Report Abuse

Delist is most likely outcome.

Posted by ken2004 > 1 day ago | Report Abuse

Wow, you really very against Capital A lol till rather throw away your 1 lot to sea predicting this will delist but still holding the share.........

Posted by Mabel > 1 day ago | Report Abuse

xiaoeh Captain Mabel
how high can CapA go...?
31/05/2024 9:26 AM

This is the captain, We have returned to core profitability!

We are targeting RM 1.00

After more than 4 years of continuous core losses, CAPITALA returned to core profitability in 1Q24 or 2 quarters earlier than we expected. The outperformance was largely due to higher-than-expected average fares driven by visa free travel to and from China and India. We raise FY24E/FY25E/FY26E core net profit by MYR384m/MYR143m/MYR143m and our SOP-TP to MYR1.00 from MYR0.94. On another note, CAPITALA ought to have its PN17 classification lifted in 4Q24/1Q25.

Flight Engineer 1: Mr Tiger Bank

Capital A Flight Path from our Flight Engineer 2, Mr Geary...

"Capital A is the first in the world to grow from an airline into five verticals of strong aviation-led businesses. Our immediate strategy now focuses on delivering shareholder value, getting the right organisation structure, and doubling down on our low-cost DNA across the ecosystem. Additionally, we are committed to maximising ecosystem synergies to enhance our performance and create sustainable growth."

"So the next six months will be the defining period for Capital A as we execute our strategic initiatives to address challenges and seize exciting opportunities. At the end of this period, I believe we will have delivered an amazing turnaround - emerging stronger with two strong groups of businesses with immense potential and transformative value creation for our stakeholders."
Tony Fernandez.

CapitalA 200SMA PIVOT Point Momentum!
S1: 0.75.
PIVOT: 0.83.
R1: 0.97.
R2: 1.20.
R3: 1.57.
R4: 1.80.
Mr. Market is Unpredictable!
Dis: Trade at your own Risk!

To Our Success !

Captain Mabel Meow

Posted by xiaoeh > 1 day ago | Report Abuse

Noted and Thanks Captain🕴

Posted by Mabel > 1 day ago | Report Abuse

The FKLI Index has traded lower yesterday and is testing the immediate support right within the psychological support of 1,600pts. Selling pressure however was mild with the downside capped as the index formed a “doji” – indicating the ongoing selling pressure has started to ease. Pending a stronger reversal signal, we opine the index could stage a rebound in the near term...

To Our Success!

Captain Mabel Meow

Posted by paulthesotong > 1 day ago | Report Abuse

Brent crude down below 82.

Posted by paulthesotong > 1 day ago | Report Abuse

Top 25 LCC...

https://www.cnbc.com/2024/05/31/-here-are-the-worlds-top-25-airlines-according-to-airlineratingscom.html

Posted by questionmark > 1 day ago | Report Abuse

mabel = serbadak