Investor Relation

Chairman Statement For FY2019

DEAR SHAREHOLDERS,

The year 2019 had been an exciting year for the Company, leading to potential investment and the broadening of the Company’s horizon. The Group however recorded a net loss of S$1.3 million due to the absence of revenue generated from the Company’s new core business of property development and property investment, which was approved by shareholders in March 2017.

EMBARKING INTO NEW JOINT VENTURES

Our joint venture with HM Realty Holdings Sdn Bhd to develop a plot of land measuring approximately 3.09 hectares at Kempas, Johor Bahru, Malaysia was stalled due to impending approval from Majlis Bandaraya Johor Bahru for the conversion of the Kempas land from residential use to commercial use. With the over-supply of properties and adverse property market condition in Johor Bahru in 2018 and 2019, the Company had began exploring new investment opportunities. On 12 June 2019, the Company had entered into a joint venture agreement (“JVA”) with Apex Development Public Company Limited (“APEX”) and Grand Bay Hotel Co., Ltd (“Grand Bay”) to acquire a 50% shareholding interest in Grand Bay from APEX; and to jointly develop a hotel property under the name of Sheraton Phuket Grand Bay Resort (the “Sheraton Resort”) in Phuket, Thailand, with Grand Bay as the joint venture vehicle. Sheraton Resort is part of an integrated development of Sheraton Phuket Grand Bay Resort and Residences situated with an exclusive hillside setting at Po Bay, east coast of Phuket, overlooking the beautiful Po Bay Grand Marina, Phang Nga National Park and Phi Phi Islands. Sheraton Resort will feature a host of five-star facilities for guests including all-day dining, specialty restaurants, infinity pool, spa and fitness centre, banquet hall, and 183 rooms comprising of hotel rooms, suites and pool villas. The Sheraton Resort shall, upon completion, be operated by Starwood Asia Pacific Hotels & Resorts Pte. Ltd. or its affiliates. In completing the JVA, the Company had raised S$8.75 million during the financial year ended 31 December 2019 through placements of the Company’s ordinary shares and convertible loans obtained from investors. On 7 January 2020, the Company completed the JVA and 50% of the shareholdings in Grand Bay was fully transferred to the Company. The Company, together with APEX, is in the midst of securing a loan with a reputable financial institution for the development of Sheraton Resort.

FUTURE PLAN

The Board of Directors (“Board”) of the Company in acknowledging the absence of revenue generated by the Group, will continue to engage in a potential investment to bring in new revenue stream and operating cash flow for the Group. The Group will keep shareholders of the Company informed of any updates from time to time where appropriate or required under the Singapore Exchange Securities Trading Limited Listing Manual Section B: Rules of Catalist. The Group remains cautious in strategizing the development of the Company’s core business, specifically during these time of economic uncertainty as a result of the COVID-19 pandemic, and will continue to explore joint ventures and/or strategic alliances to carry out its existing business. In the future, the Group may consider other geographical markets in other states and/or countries that present growth opportunities for the new business. Any expansion to new geographical markets will be evaluated and assessed by the Board on its own merit and the Group will seek shareholders’ approval for such expansion at the appropriate time, if required.

ACKNOWLEDGEMENTS

On behalf of the Board and management, we would like to thank our business partners, customers and shareholders for their unwavering support and staunch faith in the Group over the years. We look forward to growing the Group’s new business strategically to provide greater value to our shareholders.


MR CHANG WEI LU
Executive Chairman and Chief Executive Officer
15 April 2020

Annual General Meeting

The Annual General Meeting of the Company will be held by way of electronic means (via LIVE WEBCAST and/or AUDIO ONLY MEANS) on Thursday, 25 June 2020 at 10:00 a.m. The following documents are enclosed for shareholders' references:-