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Solid Group Inc.
#1
Business Profile:

The Company, formerly United Paracale Mining Company, was incorporated on October 9, 1933 as a mining company.

On May 31, 1996, the Company’s new set of stockholders executed deeds of assignment transferring to the Company their investments in shares of stock of certain companies as full payment for their subscriptions to 1.5 billion shares of the Company’s capital stock. On June 18, 1996, the Securities and Exchange Commission approved the assignment of shares and the following amendments to the Company’s Articles of Incorporation:

(a) change in the Company’s corporate name to Solid Group Inc.;

(b) change in its primary purpose to that of a holding company;

© change of the par value of its shares from P.01 to P1.00;

(d) the declassification of its class A and class B capital stock; and

(e) the increase in its authorized capital stock from P20 million (divided into P1.2 billion Class A shares and 0.8 billion Class B shares at P0.01 par value) to P5 billion divided into 5 billion shares at P1.00 par value, all of one class.

On September 4, 1996, an additional 524,475,000 of Company’s shares of stock were offered to the public and listed in the Philippine Stock Exchange.

On the November 21, 2002 special stockholders’ meeting, the stockholders approved the acquisition of the shares and/or economic interests in the Destiny Group (consisting of Destiny, Inc. and subsidiaries (DI) and Destiny Cable, Inc. and subsidiaries) from the Elena Lim family in exchange for 1.026 billion shares of the Company with par value of P1.00 per share.

In May 2003, the Company completed the acquisition of the entire issued and outstanding shares of DI, which is in the business of broadband multimedia services. The acquisition was approved by the Bureau of Internal Revenue (BIR) on May 15, 2003. A notice of exemption for the issuance of shares under the Revised Securities Act was filed with the Securities and Exchange Commission on November 6, 2003. Company shares totaling 224,461,752 was proposed to be issued in payment for the DI acquisition upon approval of the listing of these shares with the Philippine Stock Exchange. However, in 2004, upon further review of the assets and liabilities of DI, certain receivables from and payables to related parties were removed from the valuation of DI’s net assets. The re-valuation resulted in a change in its financial position from a net asset to a net liability of P23,201,010. The Company and DCI agreed that the Company would no longer issue shares of stock to DCI as payment for its acquisition of DI, but instead assume the DI’s net liability which represents fair value of the ongoing business of DI including its existing cable internet subscriber base which, in accordance with the pooling of interest accounting applied to this transaction, was charged to additional paid-in capital.

The Company has fifteen 15 wholly-owned subsidiaries as of December 31, 2010, as follows:

Solid Broadband Corporation (SBC) was incorporated on September 22, 2000 to offer broadband services. SBC obtained a congressional franchise to construct, install, establish, operate and maintain telecommunications systems throughout the Philippines under Republic Act No. 9116 which took effect on April 15, 2001. It has been granted provisional authority to use its franchise by the National Telecommunications Commission on April 15, 2002. SBC was merged with Destiny Inc. (DI) as approved by the Securities and Exchange Commission on August 26, 2005, with SBC as the surviving entity. Henceforth, SBC assumed the operations of DI of broadband cable infrastructure and provides transport services to an affiliate engaged in cable television operations. It also provides integrated multimedia services, among which are, VSAT, broadcast uplink and leased line services. In 2007, SBC started the marketing and distribution of mobile phones. In 2010, My Solid Technologies & Devices Corporation assumed the importation of the
mobile phones from SBC while MyTel Mobility Solutions Inc. took over the distribution of mobile phones from SBC.

Solid Electronics Corporation (SEC), which was incorporated on August 9, 1982. SEC operates the repair and service centers for SONY and AIWA brands of audio and video consumer electronics equipment. SEC merged with AA Electronics Corporation (AAEC), another wholly-owned subsidiary of the Company and Solid Electronics Services Inc. (SESI), a wholly owned subsidiary of SC on April 12, 2004 with SEC as the surviving company.

Solid Video Corporation (SVC) was incorporated on October 12, 1984. SVC distributes professional video equipment, accessories and supplies to broadcast networks and other companies.

Solid Manila Corporation (SMC) was incorporated on June 13, 1983. SMC is engaged in the lease and development of the Company’s real estate properties. SMC merged with Solid Distributors, Inc. (SDI), another wholly-owned subsidiary of the Company, on December 23, 2003, with SMC as the surviving company.

Solid Manila Finance Inc. (SMFI) was incorporated on September 9, 1999. SMFI is engaged in the financing and extension of business, appliance and other loans.

Omni Logistics Corporation (OLC) was incorporated on May 22, 1998. OLC provides warehousing and logistics services to third parties principally the handling and delivery of consumer electronic products. In February 2003, OLC took over from an affiliate, Solid Laguna Corporation, the color TV assembly operations for certain brand owners under toll manufacturing arrangement. OLC’s customer opted to import the color television, In October 2010, OLC ceased the color TV assembly operations.

Solid Corporation (SC) was incorporated on May 3, 1965. SC was the exclusive manufacturing licensee and the distributor of SONY products in the Philippines until October 1, 1997 when the marketing and distribution of SONY products were taken over by Sony Philippines, Inc. (SPH), a 33%-owned associated company which was organized jointly with Sony Corporation. On May 3, 1997, SC permanently closed its manufacturing facility located in Valenzuela, Metro Manila and transferred all manufacturing business to an affiliate, Solid Laguna Corporation. Thereafter, Solid Corporation’s revenues principally come from the lease of its properties.

Kita Corporation (Kita) was incorporated on October 1, 1994. Kita produced color TV sets under the AIWA brand at its factory located inside the Clark Special Economic Zone. Kita ceased its operations effective April 15, 2001 after its agreement with Aiwa expired in April 1, 2000 and was no longer renewed. Kita has been disposing of its assets to settle liabilities. Kita merged with Clark Plastics Manufacturing Corporation (CPMC), a wholly owned subsidiary of SC, on April 2004, with Kita as the surviving company. After its merger with CPMC, Kita resumed operations to continue the business of CPMC, which is injected plastics manufacturing as well as the lease of its property. In December 2010, Kita ceased the operations of its injected plastics manufacturing business. Henceforth, Kita’s revenues principally come from the lease of its properties.

Solid Laguna Corporation (SLC) was incorporated on May 15, 1995. SLC merged with Solid City Industrial and Commercial Corporation (SCICC), a wholly-owned subsidiary of Solid Corporation, on December 28, 2001 with SLC as the surviving company. SLC ceased its consumer electronics manufacturing operations in December 2002 after its manufacturing agreement with SPH expired in September 2002 and was not renewed. Subsequently, SLC’s business is injected plastics manufacturing which was the business of SCICC prior to their merger. SLC ceased the operations of the plastic injection manufacturing business at the end of 2009. SLC will operate as lessor of real estate.

Brilliant Reach Limited (BRL) was incorporated on March 12, 2003 in the British Virgin Islands and acquired by the Company on July 31, 2003. BRL handles and manages the placement of the Company’s investible funds in foreign currency fixed income financial assets and other investments.

Zen Towers Corporation (Zen) was incorporated on July 6, 2005. Zen is engaged in the development and sale of real estate properties. Its initial project is the Zen Tri-Tower condominium located in Ermita, Manila.

Precos Corporation (Precos) was incorporated on October 31, 1989 to engage in real estate and related businesses. Prior to 2004, Precos was 60% owned by SC and 40% owned by Sony International (Singapore) Ltd. (SONIS). In 2004, Precos reacquired as treasury stock the shares
held by SONIS, thereby making the Company a wholly owned subsidiary of SC. In 2007, Precos became a wholly-owned subsidiary of the Company when SC declared property dividend to the Company in the form of its investment in Precos.

SolidGroup Technologies Corporation (SGTC) was incorporated on November 17, 1989 to engage in the development and implementation of information technology systems and applications. SGTC was formerly a wholly-owned subsidiary of SC. In 2007, SGTC became a wholly-owned subsidiary of the Company when SC declared property dividend to the Company in the form of its investment in SGTC.

My Solid Technologies & Devices Corporation was incorporated on April 21, 2009 to engage in the manufacture, sale, distribution, importation of any type of digital communication devices, communication technology, broadband and audio-video equipment, gadgets and accessories as well as undertake product research and development.

MyTel Mobility Solutions Inc. (MyTel) was incorporated on July 6, 2009 to engage in the trading and distribution of mobile phones and electronic equipment or devices. On July 30, 2009, the Company’s board of directors approved the acquisition of MyTel’s 100% ownership interest. The Company’s acquisition of MyTel was consummated on January 10, 2010.

Henceforth, the term “Company” would mean the Parent Company and/or any of its subsidiaries.

Source: Annual Report 2010
Results of Operations

Revenues reached P844 million for the first quarter of 2011, or higher by 45% from P582 million for the same period in 2010 as discussed below.

Sale of goods amounted to P599 million for the first quarter of 2011, improving by 91 % from P314 million for the same period in 2010 mainly due higher volume of sales of the digital products.

Service revenue amounted to P169 million for the first quarter of 2011 or higher by 3% for the same period in 2010 of P163 million.

Rental income amounted to P37 million for the first quarter of 2011 or higher by 21% from P30 million for the same period in 2010 principally due to more space rented out.

Sale of land amounted to P28 million for the first quarter of 2011, or lower by 52% from P58 million for the same period in 2010. This was principally due to there was no reported sale of industrial lot for 2011.

Interest income amounted to P10 million for the first quarter of 2011, or down by 32% from P14 million for the same period in 2010 mainly from lower investible funds as of March 31, 2011.

Cost of sales, services and rentals amounted to P627 million for the first quarter of 2011, or higher by 41% from P443 million for the same period in 2010 as discussed below.

Cost of sales went up to P479 million for the first quarter of 2011, or higher by 75%, from P273 million for the same period of last year in relation to the increase in sales.

Cost of services amounted to P109 million for the first quarter of 2011 from P107 million for the same period of 2009 or higher by 2%. There was no material variance for this account.

Cost of rentals amounted to P16 million for the first quarter of 2011 from P17 million for the same period in 2010 principally due to lower taxes and licenses.

Cost of land amounted to P21 million for the first quarter of 2011, or a decrease of 52% from P45 million for the same period of 2010. The decrease was mainly in relation to lower sale of real estate.

Gross profit amounted to P216 million for the first quarter of 2011 from P138 million for the same period in 2010. The increase was principally due to improvement in revenues and grossmargins.

Other operating expenses (income) amounted to P144 million for the first quarter of 2011 against P97 million for the same period in 2010 as explained below.

General and administrative expenses amounted to P89 million for the first quarter of 2011, or up by 16% from P77 million for the same period of 2009 mainly due to higher personnel costs.

Selling and distribution costs amounted to P67 million for the first quarter of 2011, up by 107% from P32 million for the same period of 2009 mainly from higher advertising, manpower and delivery costs .

Other operating income amounted to P12 million for the first quarter of 2011 or the same level in 2010 of P12 million.

Operating profit amounted to P72 million for the first quarter of 2011 from P41 million for the same period in 2010, or higher by 74% from higher gross profit.

Other income (charges) amounted to P4 million loss for the first quarter of 2011 against P2 million loss for the same period in 2010 mainly from the following:

Finance income amounted to P13 million for the first quarter of 2011 compared with P6.9 million for the same period of last year. The increase was principally due to higher interest income from higher placements of the real estate segment.

Finance costs amounted to P18 million for the first quarter of 2011 compared with P8.9 million in 2010 primarily due to impairment loss on trade and other receivables.

Other gains amounted to 87 thousand for the first quarter of 2011 versus none in 2010 due to gain on sale of property.

Income before tax reached P67 million for the first quarter in 2011, or increasing by 72% fromP39 million for the same period in 2010 mainly due to higher operating profit as explained above.

Tax expense amounted to P22 million for the first quarter of 2011 from P17 million in 2010 due to higher pre-tax income.

Net income amounted to P45 million for the first quarter of 2011 against P22 million for the same period in 2010 due to the factors discussed above.

Net income attributable to equity holders of the parent amounted to P47 million for the first quarter of 2011 against P22 million in for the same period of 2010 as discussed above.

Net income attributable to minority interest amounted to P2.57 million loss for the first quarter of 2011 compared with P119 thousand loss in 2010 primarily due to expenses of the Golden Hill project in Nanning, China.

Source: Q12011 Financial Report


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#2
buy sa mga may trip.
1.22 1.23
gudluck sa gain
Trading stocks using technical analysis can be profitable if you understand the secrets that professional traders know.
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#3
intay na lang sa pagputok hihihihihi
Trading stocks using technical analysis can be profitable if you understand the secrets that professional traders know.
http://ginhawaibibigay.blogspot.com/
http://www.facebook.com/#!/ginhawaibibigay

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#4
May isang colboy namakyaw ng 510,000 shares dito. Related ata dun sa chinese tie-up para sa prefab ng housing.
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#5
The harang at 1.31 is gone.
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#6
...bagong pet mo RM?
NO TRADING TUESDAY AUGUST 21, 2018
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#7
Hindi hehe, naaliw lang ako sa price action at kwento.
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#8
^^Binabantayan dito si Summit Securities.

Company wise, maganda siya. Sideways pa din for me si SGI. Unless of course matapang ka during correction ng stock but you have to wait. Me, antay na lang me pag medyo okay na ang technical indicators niya. Pero magaling na spiker ang SGI.
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#9
...i-buy up na yan! hihih Big Grin
NO TRADING TUESDAY AUGUST 21, 2018
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#10
^^Bumili ka siguro ano? Sabayan ko na lang si Summit Securities, mas winner ang dating for this stock. Selling pa yung mga ipit dito...Hahaha....
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