P&T Energy Group Ltd. (P&T) is a Hong Kong-based global supplier of electronic learning products. It...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
P&T Energy Group Ltd. ("P&T") is a Hong Kong-based global supplier of electronic learning products. It is mainly engaged in the design and manufacture of consumer electronic products. P&T's products include corded and cordless telephones and electronic learning solutions. Howard and Matthew are the founder members and executive directors of P&T. Each of them holds 50% of the issued shares. P&T's issued share capital is HKD100 million, which consists of 100,000,000 ordinary shares of HKDI each. The following information is extracted from the audited financial statements of P&T for the years ended 31 December 2021, 2020 and 2019: Revenue Cost of sales Gross profit Other income Other operating expenses Administrative expenses Interest and finance costs Profit before tax Tax expenses Profit for the year/ attributable to shareholders Cashflow 2021 HKD million 615 (570) 9 (6) (5) 39 (4) 11 35 59 2020 HKD million 582 (555) 27 9 (5) 20 (3) 17 30 2019 HKD million 560 (535) 25 7 (4) (4) (6) 18 (3) 15 30 As part of its corporate strategic development to expand its business into the mainland market, P&T is planning to apply for listing on the main board of the Hong Kong Stock Exchange (SEHK) in the third quarter of 2022. It is proposed that P&T will issue 400,000,000 new shares at an offer price of HKD2 per share to the public for subscription by initial public offer. REQUIRED: (a) Analyse whether P&T is qualified for the listing on the Main Board of the SEHK in late 2022, with respect to the following aspects under Ch. 8: (i) Financial requirements per Profit test, Market capitalization / Revenue test, Market and capitalization / Revenue / Cashflow test'. Show your workings. (ii) Operating history and management. (iii) Minimum market capitalization. (iv) Public float. (b) Suppose P&T has appointed one existing independent non-executive director and is considering appointing the following persons to be its independent non-executive directors to comply with the requirements of Listing Rules: (i) Peter is digital marketing specialist. He holds independent non-executive director positions in six other listed companies. (ii) Mary was an accountant and a partner of an accounting firm, which audited P&T's accounts. She resigned from the accounting firm on 31 Aug 2021. Advise P&T separately the feasibility and concern(s) (if any) of appointing Peter and Mary as its additional independent non-executive directors. P&T Energy Group Ltd. ("P&T") is a Hong Kong-based global supplier of electronic learning products. It is mainly engaged in the design and manufacture of consumer electronic products. P&T's products include corded and cordless telephones and electronic learning solutions. Howard and Matthew are the founder members and executive directors of P&T. Each of them holds 50% of the issued shares. P&T's issued share capital is HKD100 million, which consists of 100,000,000 ordinary shares of HKDI each. The following information is extracted from the audited financial statements of P&T for the years ended 31 December 2021, 2020 and 2019: Revenue Cost of sales Gross profit Other income Other operating expenses Administrative expenses Interest and finance costs Profit before tax Tax expenses Profit for the year/ attributable to shareholders Cashflow 2021 HKD million 615 (570) 9 (6) (5) 39 (4) 11 35 59 2020 HKD million 582 (555) 27 9 (5) 20 (3) 17 30 2019 HKD million 560 (535) 25 7 (4) (4) (6) 18 (3) 15 30 As part of its corporate strategic development to expand its business into the mainland market, P&T is planning to apply for listing on the main board of the Hong Kong Stock Exchange (SEHK) in the third quarter of 2022. It is proposed that P&T will issue 400,000,000 new shares at an offer price of HKD2 per share to the public for subscription by initial public offer. REQUIRED: (a) Analyse whether P&T is qualified for the listing on the Main Board of the SEHK in late 2022, with respect to the following aspects under Ch. 8: (i) Financial requirements per Profit test, Market capitalization / Revenue test, Market and capitalization / Revenue / Cashflow test'. Show your workings. (ii) Operating history and management. (iii) Minimum market capitalization. (iv) Public float. (b) Suppose P&T has appointed one existing independent non-executive director and is considering appointing the following persons to be its independent non-executive directors to comply with the requirements of Listing Rules: (i) Peter is digital marketing specialist. He holds independent non-executive director positions in six other listed companies. (ii) Mary was an accountant and a partner of an accounting firm, which audited P&T's accounts. She resigned from the accounting firm on 31 Aug 2021. Advise P&T separately the feasibility and concern(s) (if any) of appointing Peter and Mary as its additional independent non-executive directors.
Expert Answer:
Answer rating: 100% (QA)
a PT is qualified for the listing on the Main Board of the SEHK in late 2022 i Financial requirement... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The Wharf (Holdings) Limited (Wharf) is a Hong Kong listed Real Estate Development Company. Exhibit 1, below, offers a brief description adapted from the companys 2010 and 2011 annual reports and...
-
The condensed financial statements of Ness Company for the years 2019 and 2020 are presented below. Compute the following ratios for 2020 and 2019. a. Current ratio. b. Inventory turnover. (Inventory...
-
The condensed financial statements of Soule SpA for the years 2016 and 2017 are presented as follows. SOULE SpA Statements of Financial Position December 31 SOULE SpA Income Statements For the Years...
-
Which of the following is not an element of the fraud triangle? (a) Rationalization. (b) Financial pressure. (c) Segregation of duties. (d) Opportunity.
-
According to Borjas (2003), immigration into the United States increased the labor supply of working men by 11.0% from 1980 to 2000 and reduced the wage of the average native U. S. worker by 3.2%....
-
Activity - based costing ( ABC ) is a costing method that allocates costs to specific activities, rather than departments or products. Discuss the concept of activity - based costing and its...
-
Pick up the correct sentence out of the following: (a) Minimum boiling azeotropes may be formed if a solution exhibits very small positive deviation from ideal behaviour (b) Maximum boiling...
-
Teldar Paper Company manufactures three products (computer paper, newsprint, and specialty paper) in a continuous production process. Senior management has asked the controller to conduct an...
-
During its first year of operations, Walnut Company completed the following two transactions. The annual accounting period ends December 31. a. Paid and recorded wages of $137,000 during Year 1;...
-
Question (700 words) John Densmore, a law student and part-time musician, was seriously injured in a car accident. The other car's driver, Ray Manzarek, a renowned life motivation coach and a...
-
Rhodes, Inc., is a fast-growing start-up firm that manufactures bicycles. The following income statement is available for July: Revenues (220 units @ $520 per unit) $ 114,400 Less Manufacturing costs...
-
A single acting reciprocating pump has its piston diameter as 150 mm and stroke 250 mm. The piston makes 50 double strokes per minute. The suction and delivery heads are 5 m and 15 m respectively....
-
A four stroke petrol engine has a stroke volume of 5.7 litres. Its mean effective pressure is 600 \(\mathrm{kN} / \mathrm{m}^{2}\) and r.p.m. is 800 . Find the indicated power of the engine.
-
A double acting reciprocating pump has a piston diameter of 160 mm and stroke length 350 mm. The suction and delivery heads are 5 m and 18 m respectively. The pump speed is 70 rpm and percentage slip...
-
A double acting piston pump runs at 90 rpm. Its bore and stroke are 150 mm and 450 mm respectively. Determine the theoretical discharge in m3/h. If the total head to be lifted by the pump is 60 m,...
-
A double acting reciprocating pump has a piston of 250 mm diameter and piston rod of 50 mm diameter, which is on one side of the piston only. Length of piston stroke is 380 mm and the speed of the...
-
MakeMeRich bank pays an average interest of 7% for its deposits and the bank receives 10% on average for its loans. Current size of the deposits is $ 1 million, and size of loans is $ 0.9 million....
-
What is removed during each of the three stages of wastewater treatment: primary, secondary, and tertiary? During which state would you expect items to be recovered that were accidentally flushed,...
-
Explain why income computed under full costing will exceed income computed under variable costing if production exceeds sales.
-
Will Norton, the general manager of Cummings Manufactured Siding, is reviewing a monthly variance summary. The summary reveals a large favorable material price variance and large unfavorable material...
-
During the month of August. Star Plastics had $70,000 of labor costs that were traced to specific jobs. The company also had $50,000 of indirect labor related to supervisory pay. Required Prepare...
-
Why are capacitors used in external defibrillators instead of high-voltage batteries?
-
A spherical capacitor has an inner radius of \(5 \mathrm{~cm}\) and an outer radius of \(6 \mathrm{~cm}\). With air between the spheres, the capacitor is connected to a \(12-\mathrm{V}\) battery and...
-
A parallel-plate capacitor with air between its plates can hold \(6 \mathrm{pC}\) of charge per volt of potential difference across its plates. When a barium titanate dielectric slab completely fills...
Study smarter with the SolutionInn App