Latest / What the Flux / Rugby Australia crushes debt | Mecca under ASIC's latest radar | BYD shares fall 5%

Transcript

Rugby Australia crushes debt | Mecca under ASIC's latest radar | BYD shares fall 5% · What the Flux

• 0:05
  Speaker 1: This is what the Flux. I'm Brett and I'm Justin
• 0:07
  Speaker 1: and a Friday, September Josey Boy.
• 0:09
  Speaker 2: The top ten highest paying rolls across Australia in twenty
• 0:12
  Speaker 2: twenty five have been revealed by Sea. In tenth position,
• 0:15
  Speaker 2: we have maintenance managers in the mining industry tipping the
• 0:18
  Speaker 2: scales an average of two hundred and nine k. In
• 0:20
  Speaker 2: sixth we have partners at law firms with an average
• 0:23
  Speaker 2: of two twenty one and in top position radiologist earning
• 0:26
  Speaker 2: an average of two hundred and thirty six k per year.
• 0:28
  Speaker 1: Wow E fox Man. As the beginning of the month
• 0:30
  Speaker 1: kicks off, there is no better time to be checking
• 0:32
  Speaker 1: your credit score to see what went up and what
• 0:34
  Speaker 1: went down over the past thirty days. In the Flux app,
• 0:37
  Speaker 1: we have a credit score Truck app that helps you
• 0:39
  Speaker 1: understand why a score went up, why it went down,
• 0:41
  Speaker 1: and what you can do to improved. If you haven't
• 0:42
  Speaker 1: checked it out yet, make sure to download the Flux
• 0:44
  Speaker 1: app and check out your credit score today.
• 0:46
  Speaker 2: Three humongous stories today Jusy Boy. Let's do it for
• 0:49
  Speaker 2: our first Rugby Australia has wiped its debt after the
• 0:53
  Speaker 2: success of its British and Irish Allions tour this year
• 0:56
  Speaker 2: and now it's ready to run the ball upfield with
• 0:58
  Speaker 2: a big investment.
• 0:59
  Speaker 1: Triscore series for rugby union. B Man, Yeah, so tell
• 1:02
  Speaker 1: me more well.
• 1:02
  Speaker 2: Rugby Australia is the governing body for rugby union in Australia.
• 1:05
  Speaker 1: They're responsible for running the Wallabies, the Wallaroos and Super
• 1:09
  Speaker 1: Rugby franchises.
• 1:10
  Speaker 2: And over the past decade Rugby Australia has battle to
• 1:13
  Speaker 2: stay afloat.
• 1:13
  Speaker 1: Yeah, face significant competition from other sporting codes like NRL
• 1:17
  Speaker 1: and AFL. In fact, Rugby Australia was forced to take
• 1:20
  Speaker 1: an eighty million dollar debt facility in order to stay alive,
• 1:23
  Speaker 1: but the British and Irish lines to it changed the game.
• 1:26
  Speaker 2: That's, of course, the combined team of British, Irish, Scottish
• 1:29
  Speaker 2: and Welsh players and it was their first time playing
• 1:31
  Speaker 2: at the Wallabies in Australia for twelve years.
• 1:34
  Speaker 1: And this series was a whopping success. We're talking pack stadiums, TV,
• 1:38
  Speaker 1: right scale law and more than one hundred million dollars
• 1:40
  Speaker 1: in profit. So now be man cashed up. Rugby Australia
• 1:43
  Speaker 1: has repaid its debt to Pacific equity partners years ahead
• 1:47
  Speaker 1: of schedule.
• 1:47
  Speaker 2: It now has cash flow to run its operations through
• 1:50
  Speaker 2: to the twenty two hundred and seven World Cup, which
• 1:51
  Speaker 2: is hosted in Australia and will pump even more money
• 1:54
  Speaker 2: into rugby Union and Juzzy Boy. The board at Rugby
• 1:57
  Speaker 2: Australia is even considering setting up an investment fund sooner
• 2:01
  Speaker 2: than plan, with the immediate focus on reinvesting their profits
• 2:05
  Speaker 2: to grow rugby across Australia.
• 2:07
  Speaker 1: Interesting, So what is the key learning? A future fund
• 2:10
  Speaker 1: is a financial reserve. It's designed to provide stability and
• 2:13
  Speaker 1: growth long after a big winfall events. Yeap.
• 2:16
  Speaker 2: We most commonly see these future funds run by countries
• 2:19
  Speaker 2: and occasionally we see sporting organizations create them as well.
• 2:22
  Speaker 1: Yeah. In sport, it's often created using profits from major
• 2:24
  Speaker 1: tournaments or broadcast deals and a investor to generate ongoing returns.
• 2:28
  Speaker 1: For example, the Australian Olympic Committee created a future fund
• 2:31
  Speaker 1: from the Sydney two thousand profits. By two thousand and
• 2:34
  Speaker 1: six it was managing one hundred and thirty seven million
• 2:36
  Speaker 1: dollars of assets, which has continued to support athletes decades later.
• 2:39
  Speaker 2: And juse wait the logic's pretty simple. Big sporting events
• 2:42
  Speaker 2: generate huge but irregular revenue, and.
• 2:45
  Speaker 1: Without a plan in place, the money can get spent
• 2:47
  Speaker 1: pretty quickly on short term costs.
• 2:49
  Speaker 2: So by funneling it into a fund, Rugby Australia is
• 2:52
  Speaker 2: planning to ensure that the principal amount stays investor while
• 2:55
  Speaker 2: earnings can support long term project for our second story.
• 2:58
  Speaker 1: Giant Aussie retailer Net has been flagged for investigation by
• 3:01
  Speaker 1: ASIK over non compliant reporting. The beauty company's flawless image
• 3:06
  Speaker 1: is starting to crack. What is the story? So Mecha
• 3:08
  Speaker 1: is the giant Australian beauty retailer that was founded back
• 3:11
  Speaker 1: in nineteen ninety seven.
• 3:12
  Speaker 2: And it's steadily grown a reputation as a premium one
• 3:15
  Speaker 2: stop shop for all things skincare, makeup, fragrance all over Australia.
• 3:19
  Speaker 1: In fact, be Man Mecha made major headlines by launching
• 3:22
  Speaker 1: its first three story beauty concept store in Melbourne earlier
• 3:25
  Speaker 1: this year.
• 3:25
  Speaker 2: It's even got a cafe, nail salon, air salon inside.
• 3:28
  Speaker 1: But Mecha's latest accounts revealed a record revenue of one
• 3:31
  Speaker 1: point four billion dollars for twenty twenty four.
• 3:33
  Speaker 2: Which included a one hundred and ten million dollar dividend
• 3:36
  Speaker 2: payout to a trust fund and.
• 3:38
  Speaker 1: The man this juicy payout is allegedly being used to
• 3:41
  Speaker 1: invest in the company's future growth, not just going to
• 3:43
  Speaker 1: its owner's pockets. But no one really knows for sure
• 3:45
  Speaker 1: where this money is going because these financial details are
• 3:48
  Speaker 1: not reported anywhere. Check on top of that consecutive overdue
• 3:51
  Speaker 1: financial report. So now ASIK is wiping off Mecha's gloss
• 3:55
  Speaker 1: and chasing up Mecha for being tardy and non transparent
• 3:58
  Speaker 1: with its use of company funds.
• 4:00
  Speaker 2: ASIK wants answers and it wants them prompter. So what
• 4:02
  Speaker 2: is the key learning here? Even if you're a private
• 4:04
  Speaker 2: company with a cult following, compliance is not optional.
• 4:07
  Speaker 1: You see be man. Mecha isn't publicly listed, but it's
• 4:10
  Speaker 1: considered a large proprietary company because it is more than
• 4:13
  Speaker 1: one hundred employees and its revenue is over fifty million dollars,
• 4:16
  Speaker 1: and large proprietary companies have to provide a whole suite
• 4:19
  Speaker 1: of reports to ask.
• 4:20
  Speaker 2: We're talking directors reports, order reports, financial reports to ACIK
• 4:23
  Speaker 2: within four months at the end of financial year.
• 4:26
  Speaker 1: But Mecha have repeatedly failed to lodge their reports on
• 4:29
  Speaker 1: time for several years, and the recent disclosure of a
• 4:31
  Speaker 1: large dividend payout without much detail was enough to raise
• 4:35
  Speaker 1: asseix alarm bells. Be Man Mecha isn't the only private
• 4:38
  Speaker 1: company that's received a touch up from acid YEP.
• 4:40
  Speaker 2: Back in twenty twenty two, ASCIK gave Laikomobile a fine
• 4:43
  Speaker 2: for failing to submit their twenty eighteen and twenty nineteen
• 4:46
  Speaker 2: financial reports, and.
• 4:47
  Speaker 1: It's an important reminder that rules apply to everyone, so
• 4:50
  Speaker 1: clearly Acik eight messing around with financial transparency. For our
• 4:53
  Speaker 1: third and final story, electric car maker BYD has seen
• 4:57
  Speaker 1: it shares fall five percent after its profits a little
• 5:00
  Speaker 1: tumble for the first time in three years, profits running
• 5:03
  Speaker 1: out of charge at bad Land b Man, so tell
• 5:05
  Speaker 1: me more so.
• 5:06
  Speaker 2: BYD is the Chinese electric car giant that was founded
• 5:09
  Speaker 2: in nineteen ninety five as a rechargeable battery company called BRD,
• 5:13
  Speaker 2: and when it evolved into an electric vehicle company and
• 5:15
  Speaker 2: sold its products into Western markets, a phonetic match to
• 5:18
  Speaker 2: bid in English was created, hence EYD, and then it
• 5:22
  Speaker 2: created the build Your dream slogan talk about inspirational branding,
• 5:26
  Speaker 2: Build Your Dream and Juzzy Boy with the backing of
• 5:29
  Speaker 2: a Warren Buffett.
• 5:29
  Speaker 1: BYD has grown into the world's largest EV producer yep
• 5:32
  Speaker 1: It overtook Tesla in twenty twenty three.
• 5:34
  Speaker 2: But despite its rapid growth, BYD has reported a thirty
• 5:37
  Speaker 2: percent drop in net profit in the second quarter, down.
• 5:40
  Speaker 1: To a measly six point four billion yuan or eight
• 5:43
  Speaker 1: hundred ninety five million US dollars and Juzyboy. This was
• 5:45
  Speaker 1: its first quarterly decline in more than three years. Next minute,
• 5:49
  Speaker 1: Bwad's investors slammed on the brakes. Its Hong Kong listed
• 5:52
  Speaker 1: chairs dropped four percent and b Man. Recently, the Chinese
• 5:55
  Speaker 1: government has ordered carmakers in China to stop making more
• 5:58
  Speaker 1: price cards, and investors a worry that this may actually
• 6:01
  Speaker 1: ruin Bod's competitive position. Interesting, So what is the key
• 6:04
  Speaker 1: learning here? Businesses competing on price alone risk a race
• 6:08
  Speaker 1: to the bottom. You see, be Man. Sustainable growth usually
• 6:11
  Speaker 1: comes from differentiation.
• 6:12
  Speaker 2: That might be differentiation in brand, technology, customer loyalty, but
• 6:16
  Speaker 2: not just being the cheapest.
• 6:17
  Speaker 1: Get this, average car prices in China have fallen by
• 6:20
  Speaker 1: around nineteen percent over the past two years.
• 6:22
  Speaker 2: And the Chinese government is concerned that this race to
• 6:24
  Speaker 2: the bottom could damage the Chinese economy.
• 6:27
  Speaker 1: So be Man Boda's main differentiator is the fact that
• 6:29
  Speaker 1: it owns both the car brand and the underlying battery,
• 6:32
  Speaker 1: and this means it has the ability to go real
• 6:34
  Speaker 1: low on price, but this is now being limited by
• 6:36
  Speaker 1: the Chinese government. Fox Sam. Every single month your credit
• 6:39
  Speaker 1: score goes off, it can go down, it can stay
• 6:41
  Speaker 1: the same, but it always gets updated and in the
• 6:43
  Speaker 1: Flux app we break it down as the wire scores
• 6:45
  Speaker 1: change and what you can do to help improve it.
• 6:46
  Speaker 1: Make sure to download the Flux app and check out
• 6:48
  Speaker 1: your credit score today. Thanks for listening and we'll see
• 6:50
  Speaker 1: you on Monday.