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mygg is even worse. It is purely an accounting technique to capitalize almost all the expenses as development cost which imo it is actually a worthless intangible asset.
Guess what? if u reclassify the development cost as an expenses, the company was just barely profitable even lost money in last few years...
The sustainability of their profitability is very much depend on "rental of A&P spaces". This was the part where they reluctant to answer the details to my question in their online briefing during the mco period. The huge operating cash flow from this segment was real but then it just didnt make any biz sense. So my gut says there must be some grey area involved therefore the profitability is so unbelievable consistent every quarter until everyone thinks it is too good to be true...
The usage of pp doesnt concern me. My only concern is can the company still able to secure the subsidies? iirc, the 3 years contract from the "A&P segment" is due for renewal soon...
GP% is exceptional high because of the subsidies. Think about it, if there is no guarantee of subsidies from the authority, which private company want to invest several hundreds of million of public infra to provide public services in a rural area? The risk is just too high to justify the rewards.
Personally i dont think it was a margin call because the boss already trimmed more than half of his shareholding long before the limit down. Therefore he should be cash rich and able to meet the margin requirement if he wants to.
From my speculative point of view, the company maybe will lose the direct and "indirect" subsidies from the state authority in near future and the boss knew it. That explains why the boss rapidly cashed out in open market since early this years...