RFT 0.00% 0.7¢ rectifier technologies ltd

Tritium Supply Order Progress

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    9th February 2022-This announcement (and I quote):
    Product Purchase Orders from Tritium Pty Ltd
    Rectifier Technologies Limited (Company) are pleased to announce that the Company has
    received product purchase orders from Tritium Pty Ltd totalling approximately 20 million USD (Approx AUD $27,870,680 according to exchange rate on 9th February 2022) for the supply of 35kW high-voltage and high-efficiency modular power supply units for high-powered DC electric vehicle charging. The orders are scheduled to be delivered before the end of 2022 (calendar year) and are binding purchase orders. This marks a significant milestone in the co-operation between both companies which began in 2017 and has since grown from strength to strength.

    28th February 2022-From the Half Yearly Report and Accounts (for the half year ended 31st Dec 2021):
    Inventories = 2,480,297 (AUD)

    31st August 2022-From the Preliminary Final Report (for the year ended 30th June 2022):
    Inventories = 5,877,879 (AUD)

    So, the order from Tritium is for AUD $27,870,680 worth of stock to be delivered before the end of the 2022 calendar year.
    But currently, they only have AUD $5,877,879 of stock on hand and it's taken them over 7 months to get to this point.
    That leaves AUD $21,992,801 worth of stock to be manufactured and delivered within four months.

    Even if you deduct their revenue noted on the Half Yearly Report and Accounts for the half-year ended 31st December 2021 (AUD $6,554,976) from the revenue reported on the Preliminary Final Report for the year ended 30th of June 2022 (AUD $14,761,523) you get AUD $8,206,547.00.
    Attributing this whole revenue earnt in the 2nd half of the 2022 financial year (AUD $8,206,547.00) to the supply order from Tritium and adding that to the total current stock on hand (AUD $5,877,879) = AUD $14,084,426.00.
    Doing it that way (which is generous because the whole revenue from the second half of 2022 is unlikely to be 100% from the Tritium order) means that of the original Tritium supply order (AUD $27,870,680) there is still at least AUD $13,786,254.00 worth of stock for this Tritium order to be manufactured and supplied to Tritium within four months.

    So this leaves me with these questions:

    1) If the first scenario is right, how can RFT possibly manufacture AUD $21,992,801 worth of stock to fill the order within four months (by the end of the 2022 calendar year) when they've only manufactured around AUD $6,000,000 in the seven months from when the order was placed?
    2) Or have we already reaped the benefits of half the Tritium supply order being filled (I certainly hope not as the profit and revenue in the recent report do not reflect it)?
    3) Does anyone know what will happen if RFT fails to fill the entire order within the 2022 calendar year as per the Tritium supply agreement?
    4) Are RFT experiencing significant product/parts ordering issues? and is this why they are not even close to fulfilling this order based on the above calculations?
    5) If the answer to number 4 above is Yes and Yes, then how will Tritium deal with this? Will they keep coming back? Will they expand the order? Will they take what they can get and cancel the remaining unfilled order?


    Does anyone have any thoughts on all this, please?
 
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