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should be now.
See private reply
elizam hasn't been down at all that I'm aware of...
malaka - also thanks for the sanity/reality posts.
Chairman`s AGM Address to Shareholders
Announced on 2000/11/29 20:21:21.
Part:A 1868 words
Status: Not market sensitive (N)
Industry Sub Group: Other Telecommunications (184)
--------------------------------------------------------------------------------
NEW TEL LIMITED 2000-11-29 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++
Good afternoon Ladies and Gentlemen and welcome to today's Annual
General Meeting of New Tel Limited.
My name is Harry Sorensen and I am the Chairman of the Board of New
Tel. My fellow directors joining me this afternoon are
* Mr Peter Malone, Chief Executive Officer of the company
* Mr Domenic Martino
* Mr Paul Evans
* Mr Gary Koh
* Mr Mark Hake
* Mr An Zhou.
Also joining us is our Company Secretary Mr Craig Piercy. Director Dr
Salim is not attending today. He was due to offer himself for
re-election to the Board at today's meeting however he has advised
that due to other business and travel commitments he will not be
seeking re-election.
This is certainly unfortunate news for our company, as Dr Salim has
been with us since 1992 and many of us are now privileged to call him
our friend. Therefore on behalf of myself and my fellow directors, I
would like to take this opportunity to place on record our thanks to
Dr Salim for his support and contribution over the past eight years
and to wish him all the best for the future.
A quorum of shareholders is present so I now declare the meeting open
at 3.00pm. Your Board welcomes shareholders and selected visitors to
the meeting. The company's accountants and auditors are also present
today. You will of course be aware that only shareholders are
entitled to be heard and vote at this meeting. I also advise you that
a current shareholder listing and register of Directors' interests is
available for inspection by shareholders.
At today's meeting we will be considering a number of resolutions
that are basically housekeeping matters for the company.
We have lodged documentation for an EGM with the ASIC and ASX, and
these documents cover our china internet project and our planned $200
million capital raising. We expect to send information to
shareholders shortly and hold the EGM in early January 2001.
Before we move on to the formal business of today's meeting however I
would like to take this opportunity to give you an update on New
Tel's activities.
Firstly we will view a new promotional video of New Tel.
(run promo video)
Our new corporate slogan is - Everybody wants it. We've got it!
That's a bold statement to make. But we believe it describes the
ethos of New Tel and explains how we've come so far, so quickly.
New Tel is gaining momentum. We are developing into a global
communications company by becoming a world-class competitor in
high-growth business sectors.
As a fully licensed switched carriage telecom service provider, New
Tel attracts retail and wholesale customers by offering tariffs that
smartly undercut our competitors.
New Tel also has a large opportunity to create an internet business
for serving the people of China through our alliance with Xinhua
Holdings, a commercial arm of the official Xinhua News Agency.
We have a growing revenue stream and more than A$70.0 million in cash
and liquid assets for project development, acquisitions and joint
ventures.
Our mission for the coming twelve months is to build share value. We
aim to do this by:
* Becoming a global player in the worldwide evolution of the internet
* Connecting China's millions to the world and the world to China
through the internet
* Providing affordable, state-of-the-art international telephony
across Asia Ppacific.
A year ago we set ourselves a grand vision for New Tel - to become a
major internet player in the Asia pacific, particularly in China, and
we are moving toward that goal at full speed.
The reason we feel confident about our ground breaking China venture
is that we have a powerful strategic partner - Xinhua News - China's
official news agency, and one of the world's largest newswire
services. The strong support of Xinhua inevitably brings New Tel the
support of other pillars of China's emerging
telecommunications-internet establishment. And of course we have a
Xinhua representative, Mr An Zhou, on our Board of Directors.
Under Chinese law no outsider may own internet assets. China still
maintains strict controls over public channels of communications. But
once the PRC has formally entered the World Trade Organisation,
expected soon, we believe these prohibitions will go, leaving New Tel
deeply imbedded in China's communications infrastructure through our
partner Xinhua.
In the meantime, New Tel has entered into agreements that enable us
to essentially have management control over the Chinese internet
assets and develop these and earn revenues for our company.
We believe that ultimately our move into China will pay off in
growing revenue numbers for New Tel, and that our investors will
become major beneficiaries of a bold and exciting management
initiative.
Our assets will include a Chinese and English language portal, at
least two Internet Service Provider (ISP) joint ventures, and three
Internet Content Provider (ICP) joint ventures, one in education,
one in statistics and information technology, and one in
telecommunications. Each will produce a stream of revenues.
The ISP's will generate revenues by 1) providing internet access to
consumers and corporations, 2) designing, developing and hosting
websites, 3) developing and hosting e-commerce applications, and 4)
managing corporate intranets and e-mail systems.
Recurring revenue streams will be one of the primary focuses of our
portal business, with income derived from:
1) advertising, customer e-mails, newsletters and banner ads
2) subscriptions for high value content, specialist newsletters and
articles
3) commissions from transactions originating from the portal, and
4) e-commerce revenues from sales originating from the portal.
New Tel's existing China interests are protected to the extent
politically feasible by agreements and understandings that define the
current and future operating structures of the joint venture with
Xinhua.
These agreements and understandings also set forth the
responsibilities and rights of the partners. Let me add that we have
been engaged in business activities with Xinhua for more than five
years, resulting in a high level of mutual confidence and trust
(guangxi), an essential for trading with Chinese partners.
Our intent is to capitalise on our guangxi with Xinhua and related
PRC government entities, ultimately to emerge as one of the dominant
players in the China internet universe.
We aim to make the New Tel internet portal, nihao.com, the place that
millions of Chinese visit when they are seeking any sort of news,
information, entertainment or business. Our plan is to offer a wide
diversity of quality content to attract users and generate
advertising revenue.
Of course our first venture with Xinhua, the establishment of an
Australian telecommunications carrier, has proved very successful.
New Tel's entry into the telecommunications market as a carrier
brought home the importance of quickly establishing a core customer
base for voice and date. Our strategy from the start was to focus
our resources on niche markets such as the ethic Chinese and other
southeast Asian populations living in Australia.
The strategy has worked, producing our first 25,000 fixed wire New
Tel subscribers over the past 12 months, with the prospect of 70,000
by 30 June 2001. Our goal is to make New Tel a household word and the
telecom and internet vendor of choice amongst Australia's 350,000
ethnic Chinese. We are doubling our marketing efforts to important
minority groups during fiscal 2001 with a targeting strategy based
on:
* Sales promotions designed to achieve brand recognition and
acceptance through sponsorship of cultural events. In January 2000
New Tel was the main sponsor of Sydney's Year of the Dragon
festivities in the harbour and downtown areas of the city. During the
twenty-seventh Olympiad in Sydney in September New Tel was a sponsor
of the Chinese team, in addition to providing the athletes free
telephone services back home to China.
* Marketing in each community's native language.
* Customer service and monthly billing in the relevant native
language.
* Favourable long distance rates to the customer's home country.
* Offering subscription commissions to special interest groups such
as first, second and third tier sports associations and other
cultural and community organisations in return for selling New Tel's
services to their memberships.
In addition to more aggressive marketing, we intend to deploy our
resources to enhance the New Tel network by adding value-added
services to our current customer base here in Australia. This will
increase the revenue per subscriber which will in turn increase our
gross margin.
The mobile telephony market is a natural target for New Tel. Mobile
resale is one of the fastest growing segments of the business, with
licensed service providers such as our company among the principal
beneficiaries.
Australian mobile market penetration of 40 percent is expected by the
end of calendar year 2000, clearly indicating the ongoing growth
potential of this market. Beginning with the acquisition of G3
Communications' base of 1,500 mobile subscribers in October, 1999,
New Tel's base at 30 June 2000, had reached 6,000.
We now have over 12,000 mobile customers, and at 30 June 2001, we
anticipate a mobile base of 50,000 subscribers. The fixed wire and
mobile base combined would then stand at 120,000.
Through our electronic communications subsidiary, New Tel develops
and commercialises wireless application protocol (WAP) products,
including the MD3000 mobile data terminal and the underground
microcellular communications system, UCELNET. The MD3000 can be
linked with New Tel's GSM service, providing customers with a truly
mobile wireless data capability.
In February 2000, with our business focus shifted to
telecommunications, New Tel spun off as a separate company our engine
technologies unit, Advanced Engine Components Ltd (AEC). Currently we
retain roughly 83 percent of AEC's equity.
In today's world of lightening fast change in business, particularly
in telecommunications, it is sometimes difficult to cut through the
smoke and mirrors and find the real thing. As the Chairman of New Tel
and as your Board of Directors, we are here to confirm to both our
current and future shareholders that New Tel is real.
We have spent the past several years of our lives creating a viable
living business. We're real, we're on the move, and we know exactly
where we're headed in the brave new world of telecommunications.
Among our accomplishments over the past decade, we have raised
A$120.0 million in new capital, including A$80.0 million this year
alone. The funds were employed for development and commercialisation
of leading edge communications products across a range of industries
and international markets.
We have never had more resources available for building our business,
or better opportunities to grow, enhance our revenues, and add
shareholder value. The successes of the past are driving New Tel
forward today.
In the coming months we plan to raise A$200 million (US$120 million).
The funds will be used for the implementation of our China
agreements, for building our China infrastructure, and for
development of our Australian business base.
As I have already said, a separate shareholder meeting is to be held
shortly to consider this capital raising and other matters relating
to our China project.
In summary, your Board believes the recent flurry of activity,
together with a solid history of accomplishment, demonstrate that New
Tel is real, here to stay, and on the move. We are looking forward to
an exciting twelve months ahead.
Strike, I have to disagree with you here.
The main purpose of boards like these are for posters to post what they hear - rumours, tips etc. Of course ramping is off - but I don't think Malaka is ramping and seems to be quite accurate with his info to date.
The comments on the verifiable, sourced information I usually find quite boring because its not new or revealing. To me the key is to pick who you believe to be a credible poster (if any) and put more into what they say.
Malaka, you are probably the only poster I'd put any faith in at all - appreciate the updates.
Correct. Most telco's very badly hammered in past few days and NWL has held ground.
Exactly in line with what I heard this afternoon (Aussie time).
Malaka, I've always tried to stay optomistic - but I guess it was a bit nerve rattling when some of the previous supporters of the stock sold in the past few weeks. I think they are back in now. I might get some more tomorrow. I've held a bunch from Nov.98, and then more from the high this year (unfortunately) so I can see it from both sides.
So much anticipation can lead to dissapointment - hope not this time tomorrow...
Has anyone heard rumours along the lines I heard - ie tomorrow the deal, then the $200m post olympics?
Consistant with my source - MR ZHANG is in AUSTRALIA till the 13th of OCTOBER - I have been doubtful and pretty upset when results delayed last night but my source is GOOD. Tomorrow the deal update with the Chinese - and only 2 weeks later, after a nice build up hopefully...the $200m deal. I'm the last to ra, ra, ra, but I'm feeling optomistic this time.
I was told that the press conference WILL be tomorrow, attended by the Chinese and announcing the deal - but the confirmation of the capital raising and underwriting will be immediately after the Olympics. I don't know where the E&Y report fits in here.
I hear from a very reliable source - news conference tomorrow as stated - then another announcement after the olympics confirming capital raising.
Great. Multiple references to secret private messages in the main board.
Part B
NEW TEL LIMITED 2000-09-14 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++
CONSOLIDATED PROFIT AND LOSS ACCOUNT
(Equity Accounted)
CURRENT PREVIOUS
PERIOD CORRESPONDING
PERIOD
AUD000 AUD000
1.1 Sales (or equivalent operating) revenue 6,331 1,052
1.2 Share of associates "net profit(loss)
attributable to members"
(equal to item 16.7) - -
1.3 Other revenue 5,012 3,656
1.4 Operating profit (loss) before
abnormal items and tax (19,083) (5,985)
1.5 Abnormal items before tax
(detail in item 2.4) 1,581 -
1.6 Operating profit (loss) before tax
(items 1.4 + 1.5) (17,502) (5,985)
1.7 Less tax 1,039 488
1.8 Operating profit (loss) after tax
but before outside equity interests (16,463) (5,497)
1.9 Less outside equity interests 347 184
1.10 Operating profit (loss) after tax
attributable to members (16,116) (5,313)
1.11 Extraordinary items after tax
(detail in item 2.6) - -
1.12 Less outside equity interests - -
1.13 Extraordinary items after tax
attributable to members - -
1.14 Total operating profit (loss) and
extraordinary items after tax
(items 1.8 + 1.11) (16,463) (5,497)
1.15 Operating profit (loss) and
extraordinary items after tax
attributable to outside equity
interests (items 1.9 + 1.12) 347 184
1.16 Operating profit (loss) and
extraordinary items after tax
attributable to members
(items 1.10 + 1.13) (16,116) (5,313)
1.17 Retained profits (accumulated losses)
at beginning of financial period (22,139) (16,826)
1.18 If change in accounting policy as set
out in clause 11 of AASB 1018 Profit
and Loss Accounts, adjustments as
required by that clause (include brief
(description) - -
1.19 Aggregate of amounts transferred
from reserves - -
1.20 Total available for appropriation (38,255) (22,139)
1.21 Dividends provided for or paid - -
1.22 Aggregate of amounts transferred
to reserves - -
1.23 Retained profits (accumulated losses)
at end of financial period (38,255) (22,139)
PROFIT RESTATED TO EXCLUDE Current Previous
AMORTISATION OF GOODWILL Period Corresponding
Period
AUD000 AUD000
1.24 Operating profit(loss) after tax
before outside equity interests
(items 1.8) and amortisation of
goodwill (16,463) (5,497)
1.25 Less (plus) outside equity interests 347 184
1.26 Operating profit(loss) after tax
(before amortisation of goodwill)
attributable to members (16,116) (5,313)
INTANGIBLE, ABNORMAL AND EXTRAORDINARY ITEMS
Consolidated - current period
Before Related Related Amount
tax tax outside (after
equity tax)
interests attributable
to members
AUD000 AUD000 AUD000 AUD000
2.1 Amortisation of
goodwill - - - -
2.2 Amortisation of
other intangibles (3,485) - 133 (3,352)
2.3 Total amortisation
of intangibles (3,485) - 133 (3,352)
2.4 Abnormal items 1,581 (569) - 1,012
2.5 Total abnormal items 1,581 (569) - 1,012
2.6 Extraordinary items - - - -
2.7 Total extraordinary
items - - - -
COMPARISON OF HALF YEAR PROFITS Current Previous
(Preliminary final statement only) year year
AUD000 AUD000
3.1 Consolidated operating profit
(loss) after tax attributable
to members reported for the 1st
half year (item 1.10 in the
half yearly report) (6,629) (1,919)
3.2 Consolidated operating profit
(loss) after tax attributable
to members for the 2nd half year (9,487) (3,394)
CONSOLIDATED BALANCE SHEET
(See note 5)
At end of As in last As in last
current annual half yearly
period report report
AUD000 AUD000 AUD000
CURRENT ASSETS
4.1 Cash 63,359 7,751 3,299
4.2 Receivables 2,909 421 19,664
4.3 Investments 9,189 1,648 2,660
4.4 Inventories 400 493 596
4.5 Other (provide details
if material) 654 371 293
4.6 Total current assets 76,511 10,684 26,512
NON-CURRENT ASSETS
4.7 Receivables 15 47 -
4.8 Investments in associates - - 663
4.9 Other investments 463 - -
4.10 Inventories - - -
4.11 Exploration and
evaluation expenditure
capitalised - - -
4.12 Development properties
(mining entities) - - -
4.13 Other property, plant and
equipment (net) 6,054 1,078 4,634
4.14 Intangibles (net) 13,517 10,353 13,999
4.15 Other - China Internet
project 6,783 - -
4.15a Other (provide details
if material) 135 106 465
4.16 Total non-current assets 26,967 11,584 19,761
4.17 Total assets 103,478 22,268 46,273
CURRENT LIABILITIES
4.18 Accounts payable 6,045 1,663 5,217
4.19 Borrowings 418 42 35
4.20 Provisions 320 150 391
4.21 Other (provide details
if material) 59 2,276 745
4.22 Total current liabilities 6,842 4,131 6,388
NON-CURRENT LIABILITIES
4.23 Accounts payable - - -
4.24 Borrowings 2,131 - -
4.25 Provisions 112 1,078 1,090
4.26 Other (provide details
if material) - - -
4.27 Total non-current
liabilities 2,243 1,078 1,090
4.28 Total liabilities 9,085 5,209 7,478
4.29 Net assets 94,393 17,059 38,795
EQUITY
4.30 Capital 132,535 39,202 67,353
4.31 Reserves 29 210 210
4.32 Retained profits
(accumulated losses) (38,255) (22,139) (28,768)
4.33 Equity attributable to
members of the parent
entity 94,309 17,273 38,795
4.34 Outside equity interests
in controlled entities 84 (214) -
4.35 Total equity 94,393 17,059 38,795
4.36 Preference capital and
related premium included
as part of 4.32 - - -
EXPLORATION AND EVALUATION EXPENDITURE CAPITALISED
To be completed only by entities with mining interests if amounts are
material. Include all expenditure incurred regardless of whether
written off directly against profit.
Current Previous
period corresponding
period
AUD000 AUD000
5.1 Opening balance - -
5.2 Expenditure incurred
during current period - -
5.3 Expenditure written off
during current period - -
5.4 Acquisitions, disposals,
revaluation increments, etc. - -
5.5 Expenditure transferred to
Development Properties - -
5.6 Closing balance as shown in
the consolidated balance sheet
(item 4.10) N/A N/A
DEVELOPMENT PROPERTIES
(To be completed only by entities with mining interests if amounts
are material)
Current Previous
period corresponding
period
AUD000 AUD000
6.1 Opening balance - -
6.2 Expenditure incurred
during current period - -
6.3 Expenditure transferred from
exploration and evaluation - -
6.4 Expenditure written off
during current period - -
6.5 Acquisitions, disposals,
revaluation increments, etc. - -
6.6 Expenditure transferred to
mine properties - -
6.7 Closing balance as shown in
the consolidated balance sheet
(item 4.11) N/A N/A
CONSOLIDATED STATEMENT OF CASH FLOWS
(See note 6)
Current Previous
period corresponding
period
AUD000 AUD000
CASH FLOWS RELATED TO OPERATING ACTIVITIES
7.1 Receipts from customers 5,262 1,039
7.2 Payments to suppliers and
employees (20,075) (8,409)
7.3 Dividends received from associates - -
7.4 Other dividends received - -
7.5 Interest and other items
of similar nature received 1,357 61
7.6 Interest and other costs
of finance paid (144) (71)
7.7 Income taxes paid - -
7.8 Other (provide details if
material) - -
7.9 Net operating cash flows (13,600) (7,380)
CASH FLOWS RELATED TO INVESTING ACTIVITIES
7.10 Payment for purchases of
property, plant and equipment (2,297) (133)
7.11 Proceeds from sale of
property, plant and equipment 964 -
7.12 Payment for purchases of
equity investments - (406)
7.13 Proceeds from sale of
equity investments 2,308 -
7.14 Loans to other entities - -
7.15 Loans repaid by other entities - -
7.16a Other - Payments for research
and development (1,057) (1,338)
7.16b Other - Payments for intellectual
property (767) (1,060)
7.16c Other - Payments for China Internet
Project (6,783) -
7.16d Other - Payments to deposits (10,246) -
7.16e Other (provide details if
material) 50 117
7.17 Net investing cash flows (17,828) (2,820)
CASH FLOWS RELATED TO FINANCING ACTIVITIES
7.18 Proceeds from issues of
securities (shares,
options, etc.) 85,253 13,930
7.19 Proceeds from borrowings - -
7.20 Repayment of borrowings - -
7.21 Dividends paid - -
7.22a Other - Structured Equity
commercialisation fee 1,626 2,635
7.22b Other (provide details if
material) 157 1,171
7.23 Net financing cash flows 87,036 17,736
7.24 NET INCREASE (DECREASE) IN CASH HELD 55,608 7,536
7.25 Cash at beginning of period
(see Reconciliation of cash) 7,751 233
7.26a Exchange rate adjustments
to item 7.25 - -
7.26b Cash balance of a controlled
entity disposed (net of those
acquired) during the year - (8)
7.27 Cash at end of period
(see Reconciliation of cash) 63,359 7,751
NON-CASH FINANCING AND INVESTING ACTIVITIES
Details of financing and investing transactions which have had a
material effect on consolidated assets and liabilities but did not
involve cash flows are as follows. If an amount is quantified, show
comparative amount.
During the financial year the consolidated entity acquired plant
and equipment with an aggregate fair value of $2,611,121 by means
of finance leases.
The consolidated entity acquired interests in controlled entities
by means of the issue of 4,000,000 ordinary shares.
RECONCILIATION OF CASH
Reconciliation of cash at the end of Current Previous
the period (as shown in the consolidated period corresponding
statement of cash flows) to the related period
items in the accounts is as follows. AUD000 AUD000
8.1 Cash on hand and at bank 63,359 7,751
8.2 Deposits at call - -
8.3 Bank overdraft - -
8.4 Other (provide details) - -
8.5 Total cash at end of
period (item 7.25) 63,359 7,751
RATIOS Current Previous
period corresponding
period
PROFIT BEFORE ABNORMALS AND TAX/SALES
9.1 Consolidated operating profit (loss)
before abnormal items and tax (item
1.4) as a percentage of sales revenue
(item 1.1) (301) % (569) %
PROFIT AFTER TAX / EQUITY INTERESTS
9.2 Consolidated operating profit (loss)
after tax attributable to members
(item 1.10) as a percentage of equity
(similarly attributable) at the end of
the period (item 4.31) (17) % (31) %
EARNINGS PER SECURITY (EPS)
10.1 Calculation of basic, and fully diluted,
EPS in accordance with
"AASB 1027: Earnings per Share"
(a) Basic EPS (14.6) (11.4)
(b) Diluted EPS (if materially - -
different from (a))
(c) Weighted average number of
ordinary shares outstanding
during the period used in
the calculation of the Basic
EPS 110,352,000 46,459,000
NTA BACKING Current Previous
(see note 7) period corresponding
period
11.1 Net tangible asset backing
per ordinary security 0.58 0.07
I hold a lot of NewTel. I believe the company could be big. I watch the hopes of all my fellow investors on these boards, and the constant next week, rumour of tomorrow etc. Painful but hopefully worthwhile.
But when I sit all day waiting for the company to release results that only yesterday they told the market they would release today - and nothing - I GET MIGHTY P&^*& OFF.
WHAT THE HELL IS THIS COMPANY ABOUT? I'm losing faith bit by bit, and my bail out price is coming down every time they pull a stunt like this.
Bad management not to deliver results, bad for PR and bad for investor relations.
(I still live in hope that the company will make me rich - but please - no more pain!)
Skunk.