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QuestionsCategory: Business QuadrantSingtel letter to shareholders
Qi Jie asked 3 years ago

Hi, I am new to investing and have a question about Singtel’s letter to shareholders. 
http://info.singtel.com/annualreport/2017/files/Letter_to_Shareholders.pdf
On page 7 there is company and group, may I know what is the difference or what do they mean by company and group?
Thanks alot. 

Qi Jie replied 3 years ago

And also may I know what to look out for when company issue a letter to shareholders in general, and in Singtel case.

1 Answers
Victor Chng answered 3 years ago

Hi Qi Jie,
Always take the group figure because it consolidate all listed shell company with their other operating subsidiary. The company only show figure in the listed shell company.
 
In the letter to shareholders, the chairman or executive usually explain what happen to the business in that financial years. Reading the letter is to get a feeling about how the company had performed comparing to their previous year and the possible challenges that they are facing. 
 

Qi Jie replied 3 years ago

Hi may I know what does shell company means in reference to singtel?
Also for operating subsidiary are you referring to singtel group enterprise and group digital life business?

Victor Chng replied 3 years ago

Hi Qi Jie,

When a company list on the exchange, the listed company is usually a shell company which means it does not run any operation but the shell company owned operating company that run the operation. For singtel case, the operating business are their mobile phone line, broadband and etc…

So when we take the numbers, we should always take the group figure because it account the shell company together with their operating business.