Nextnation Communication Berhad (NEXTNAT:0096) Q&A

今天终于收到Nextnat的回复，而明天Nextnat也将会出第四季的业绩报告，希望是好消息。

1. Why is Trade Receivable of Nextnation so high compare with competitor
like Mtouche and Aknmtech? It has increased from RM39.6 millionas at
April 30, 2006 to RM67.1 million as at January 31, 2007. As a result,
the debtors' collection period has increased from 128 days to 217 days
during that period. Would there be any risk that Nextnation couldn't
collect their debt?

The industry norm is that telcos pay their suppliers or partners within 60-120 days typically after reconsolidation of their bills. Their
reconsolidation usually takes 30-120 days especially in developing countries like Thailand and Indonesia with poor infrastructure.
Any excess of cash flow on our end is reinvested in market expansion to generate more revenue.
As long the company is growing, the revenue will continue to increase and thus will directly grow the receivables and payables.

2. Why is company's share price keep dropping since Nov 2006 while the
Malaysia share market is being one of the best perform market in the
world since 2007?

Share prices are determined by the market itself, with investors and fund managers buying and selling freely. The company does not
interfere in the market free float.

3. Why did company director See Poh Yee sell 1,000,000 shares again on
10 May 2007? This is already his second time of disposing share in open
market? Is our director not confidence with company operation?

Company directors are free to buy or sell their shares to investors or funds for their personal reasons. The majority shareholders are still
actively involved in day to day operations and continue to deliver record breaking results every quarter with full confidence. 

4. Why is it take so long to sell private placement shares which took
more than one year? Besides that, don't you think that you should make
announcement on day that you applied for extension to complete the
private placement instead of stated it in quater report?

With the growth and needs of the company, the company evaluates the right timing and market pricing to be reasonable before completing
the private placement. The private placement timeline is within Bursa requirement for the company to make the announcement. 

5. Why is Nextnation keep getting suspension from MCMC by not being
compliance with MCMC rules? On 14-May, you made press statement said
that: "These suspensions have since been lifted. Nextnation as a mobile
application services provider strictly prohibits our partner content
providers from any form of spamming activity.", but you again being
suspended on shortcode 32966 since 12-April till now due to termination
not processed.
http://www.nextnationnet.com/press/2007-03-14-1.shtml
http://www.cmc.gov.my/mcmc/consumer/non_compliance.asp

The company has 2 subsidiaries providing mobile gateway services which few of their services was perceived as non compliant
with MCMC's guidelines. All the suspected services were normal business technical errors caused by unavoidable technical factors
such as server break down and system migration causing some disruption and resulting in the non termination or delay of processes.
These are the same types of errors  which would happen and affect any bank, utility company or public transport system everyday.
These are unintentional normal business technical issues which are generally rectified by going through the normal customer service
process, and are totally different  and separatef rom "SPAM" which is an intentional abuse by content providers.
Our system is geared to filter all SPAM, and termination not processed does not falls into the same category.