Periodic disclosures – quarterly report
9.33
To what extend must a listed corporation's board of directors comment on the listed corporation's prospects in the quarterly report pursuant to paragraph 3 of the Appendix 9B of the ACE LR4?
In commenting on the listed corporation’s prospects under paragraph 3 of Appendix 9B of the ACE 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 corporation’s prospects for the remaining period of the financial year. The commentary should include –
(a)
the prospects of each of the group's business segments, including contracts at hand, tender book value, competitive challenges, customers' trend and supply constraint;
(b)
significant changes in raw material costs and selling prices affecting demand and profit margins;
(c)
financial impact arising from currency fluctuation and steps taken to mitigate such fluctuation;
(d)
changes in product or service mix and their impact on profit margin;
(e)
financial impact from recently completed acquisition, disposal or merger;
(f)
new regulations or rules which may affect the group's operating activities; or
(g)
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.
4 Paragraph 3 of Appendix 9B of the ACE LR, among others, requires a listed corporation to provide in its quarterly report, a commentary on the prospects, including the factors that are likely to influence the listed corporation'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.