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Chairman's Message


A SUCCESSFUL RECOVERY

Following a profitable financial year ended 31 December 2017 (“FY2017”) and after converting a significant portion of its debts to equity on 27 and 28 February 2018, the Company has lifted the suspension of trading of its shares on 1 March 2018. On the same day, the audited financial statement for FY2017 was completed. On 3 March 2018, the Company submitted an application to the SGX-ST to exit the Watch-List.

For the full year of FY2017, the Group generated a revenue of close to S$80 million, a 70% increase compared to FY2016. At the same time, gross profit improved by 281% to S$1.43 million. Significantly, the Group had achieved an operating net profit of ca. S$0.67 million despite an increase in finance cost. Including net other income, the Group has generated a net profit of S$1.51 million in FY2017, compared to a net loss of S$8.52 million in FY2016.

On 27 February 2018, the Company received approval from shareholders for the following:

(1) The capitalisation of total debt owing by the Company to creditors into 22,374,343,660 Capitalisation Shares (“Cap Shares”) at a Capitalisation Price of S$0.0005 per Cap Share, and the allotment and issuance of 22,374,343,660 Cap Shares to the creditors (“DCE”);
(2) The transfer of controlling interest in the company to Mr. Zhang Baoan in connection with the DCE; and
(3) Issuance of 3% redeemable convertible bonds due 2021 (“RCB”) of an aggregate principal value of S$2,000,000 to Baycrest International Inc (“Baycrest”) or its nominees and the allotment and issuance of 4,000,000,000 Conversion Shares (“RCB Shares”) pursuant to the conversion of the redeemable convertible bonds.

Following the approval, Baycrest has converted its entire RCB into the RCB Shares; and the Cap Shares and RCB shares have been issued to the subscribers. Upon completion of the DCE and RCB, total issued shares of the Company has been increased to 41,316,907,761.


LOOKING AHEAD

Riding on its success in the financial year 2017, the Company intends to beef up its current business while seeking new investors and partners to explore various other options to grow the Company.



Simon Eng
Chairman