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I am reproducing this summary from smallkid91 at TOPGLOV FORUM to my blog.
smallkid91 Zoom call summary: please buy me a pizza :p missed the first part.
US total revenue is 25% of top glove.
12.5% of the revenue are affected by the hold order. Another 12.5% can still be shipped.
WRP took couple of months to resolve this. 2 months after engaging consultant.
Topglov is consulting the same consultant with WRP, and believe to resolve this in matter of weeks.
Topglov management have not meet with committees from border control.
Topglov had 80audits last year.
Topglov believe customer will follow through their orders instead of cancelling.
Topglov price difference between US ASP and others is 5% for non spot order. Similarly priced for spot order.
Topglove safety safety safety. Improve improve.
But it seems like topglove management does not show much emphathy. Probably good for our bottom line :P 16/07/2020 6:29 PM
I am reproducing this summary from sypher at GLOV private discussion room to my blog.
Stephanie CLSA
1. CBP will do the same to other subsidiaries?
Tan Sri: only 2 for now, the rest is up to them.
2. 50million sufficient?
Tan Sri: WRP pay 20 million ringgit, Karex also not much, Ansell also pay less than 20million ringgit.
Dato KM Lee: WRP is different, their issue is far more serious as they dont pay workers salary for 3 months.
Random guy
1. How often TG audit?
Dato KM Lee: last year we have 80 audits. This year about 10 audits due to Covid 19. We welcome them to come and see how is it. Wish we can invite CBP to come and audit us before they take action. Bear in mind a lot of ambassador also came to audit us, like US Nepal Indonesian, Belgium, Germany and etc. they even interview our workers. All of them are happy with what they seen. Malaysian authority also came, nothing like Chanel 4 shows. Police, Miti, Mpk , JTK, KKM all came to visit. They are happy with visit. We have enough of report, its good to clear this once and for all.
Tan Sri Lim: last 1 year we have audit almost everyday (80 audits a year).
Steve Lo
1. How long WRP got rid of the detention?
Dato KM Lee: shareholder issue, legal issue and management issue, customer issue, hence they took a few months, more than 2 months. Their company was in a mess, so they took long time. TG has strong team and we have US office, we been dealing with FDA for long time.
Allen Lim
1. What’s the ASP for US and non US? In percentage?
KM Lee: almost same for spot orders. Australia Spot also come in strongly. Normal orders about 5%.
Sam
1. All top glove cannot enter US for now?
KM Lee: not true, still can ship but pending due to CBP.
2. CBP detention Does that cover all glove?
TS LIM: only 2 subsidiaries, take up about 12.5% of our total 20% export to US only.
Ooi Beng Hui (Muted)
Ng Chi Hung
I am reproducing this text message from a telegram group to my blog.
Date: 16 July 2020, 530PM
Management: Cheong Guan, Tan Sri Lim and Dato Lee
Action mgmt will take? - 1) TOPG US office has engaged with CBP - find out why are the reason/s they put TOPG into the list. 2) called consultations which got WRP to get out their detention order previously. Confident to overcome the challenges in the short period of time ~2-4 weeks. WRP was off the detention list within 2 weeks because the US need gloves urgently.
What’s the progress of 2019’s claims? Workers need to pay agency fees previously. TOPG took action and no longer collect agency fees. Estimated RM20-50m need to compensate the workers who arrived in Malaysia 2-3 years ago. Activists wanted TOPG to reimburse the worker immediately - working with HR to reimburse immediately. Activists continue to target TOPG.
Any other issue that could cause the detention? No, only on foreign worker treatment issue. Issue was foreign workers work more than 7 days a week. Management don’t allowed them to work more than 6 days/week now. But, foreign workers actually wanted to work longer hours, but TOPG do not allow.
CBP doesn’t require very strong ground to impose detention. CBP look into 2 main areas - 1) Passport retention - TOPG no longer detain foreign worker passports , 2) Recruitment fees - looking into it actively to come up with the calculation to reimburse foreign worker. Has adopted zero recruitment policy since Jan-2019.
Activists tend to rely on consultations. 3rd parties audited TOPG. Engaged with 3rd party independent consultant
The detention list only have 2 TOPG subsidiaries. Impacted 12.5% of TOPG business. TOPG will continue to ship and park in the free-trade-zone. Detention is 2-4 weeks depending on the settlement (previously WRP is only 2 weeks) and once it is settled the stocks can be released. Customers will complain to the US custom as they demand gloves urgently.
On worse case scenario, can ship to other countries. Will have to return deposit to US customers. Customers not urgent to collect back their deposits because they demand the gloves.
ASP to other countries will be lesser than US but still high. ASP difference between US and non-US? Spot orders ASPs are similar. Normal orders 5% differential.
Could CBP impose bans to other TOPG subsidiaries? Whether they can impose or not is up to CBP.
https://klse.i3investor.com/blogs/gloveharicut/2020-07-16-story-h1510576389-TOPGLOV_Zooom_Briefing_Updates_on_U_S_CBP_Detention_Order.jsp
