Ann: Release of Annual Report - UOA Development Bhd, page-7

Just catching up with this company and if anything I find this annual report the least oqaque that I have read from them, seems like they are genuinely making an effort to make disclosures about all the related party transactions and it is for all intents and purposes has seemed like a listed family private company.

$101,388,000 has been advanced to BDN, seems like a pretty decent investment in Vietnam. Do they still do the DRP discount? It has always irked me that they do this given the managing owners are doing this and probably has more to do with why ROE is so poor as they are then constantly issuing a huge amount of shares at a discount to the share price let alone NTA. Seems like they have slowed down on that and issued $5.7m in shares for the interim 2023 dividend vs $27.8m for the final 2022 dividend. At a nearly 7% dividend yield the DRP is huge and even with the increased cash dividend in 2023 they issued 60m shares and this has been happening every year, it would have been 100m if they had taken the same amount in shares which is why there are 1.6billion shares. It also seems like a hugely inefficient tax structure to have so much equity but the management probably think of the cash in the company as money in their bank account.

Not sure why interest expenses are so high when they have so much cash on hand unless that is project level debt as they are paying up to 9.62% in interest on that debt. It is also all mostly current term loans not non-current

Also what happened with the daughter director disposing of nearly 100m shares?

Has always looked cheap and have owned before but with interest rates up it should burn out the leveraged developers and 2026 onwards looks interesting for UOS especially if they have stopped diluting smaller holders