00:00Fashion Valley has recorded a positive return on investment, or more commonly known as EBITDA,
00:06for several years after receiving investment from Kazanah and PNB.
00:11However, Kazanah and PNB are aware of the challenges faced by Fashion Valley to expand business.
00:20The failure of Fashion Valley can be linked to external factors such as the following.
00:27First, the implication of COVID-19.
00:30When Fashion Valley wanted to become an expressive platform for purchasing various goods,
00:36it has increased the number of physical shops significantly.
00:40However, the movement control order implemented during COVID-19 has prevented the business of the physical Fashion Valley
00:48and resulted in the market and the use of premiums, including caps, to deteriorate rapidly.
00:56In fact, the lack of physical shops also had to be closed.
01:00Second, the change in the trend of the e-commerce platform.
01:04The rapid development of local fashion brands, especially Sopan Fashion,
01:10which uses its own e-commerce platform and alternative channels such as AXS and Frakesbook,
01:17has caused Fashion Valley to experience great competition.
01:22Therefore, the Fashion Valley platform was forced to be closed
01:25and then Fashion Valley has shifted its focus to its own brands such as Duck and Lilith.
01:32Third, the challenge of fundraising.
01:34All these challenges have caused a lack of cash flow to Fashion Valley.
01:39It is trying to raise new funds to deal with this problem,
01:44but the existing shareholders, including Kazanah and PNB,
01:48do not agree to take additional risks by adding investments in Fashion Valley.
01:53In fact, the fundraising market that challenged us at that time
01:58caused the fundraising process carried out by Fashion Valley to fail.
02:03Although Kazanah and PNB are minority investors,
02:07both parties have played a proactive role in helping Fashion Valley.
02:11This means providing strategic guidance and financial advice to the top executives of the company.
02:17However, the impact and challenges faced by Fashion Valley are too great
02:23and make the financial situation worse.
02:27To continue to operate and deal with the cash flow problem,
02:31Fashion Valley at that time needed to raise funds from new investors immediately.
02:37However, they did not accept many offers from new investors.
02:41The offer received was the best offer and was approved by all shareholders.
02:47Kazanah and PNB admitted that the results of the investment were not consistent with the return of the investment in Fashion Valley.
02:56However, the government will continue to pay attention to ensure that the status quo continues to be strong.
03:06Given that the SPRM is still investigating this case and the in-depth audit is still underway,
03:12Kazanah and PNB need to be given space for the investigation process to be completed.
03:17All the earnings will be used to improve the management and management procedures.
03:25That's all. Thank you.
03:28Given what has happened to the investment in Fashion Valley,
03:34will Kazanah invest in the startup company or is there a different strategy in the industry?
03:42Is this a sign of Kazanah's desire to invest in the Teroka model? Thank you.
03:51Kazanah's investment in Fashion Valley was made seven years ago.
03:56Since then, Kazanah's approach in making investment decisions has been challenged
04:02and the investment selection process has also been tightened, including investment in the startup company and Teroka capital.
04:10The issue of Fashion Valley will not allow Kazanah to invest in the startup company.
04:17The vision remains in the hands of Kazanah and Kazanah will continue to support the startup ecosystem and Teroka capital
04:26while improving the control mechanism.
04:29It is reasonable for Kazanah to continue to invest in the Teroka capital ecosystem
04:34in line with the economic mandate of the city to support the development of the country as a whole.
04:40That's all. Thank you.
04:46Transcription by ESO. Translation by —
Comments