Chairman Statement For FY2018
The year 2018 had been another challenging year for the Company. The Group had recorded a total loss of S$0.3 million due to the absence of revenue generated from the Company’s new core business of property development and property investment, approved by shareholders in March 2017.THE EXISTING BUSINESS
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 (“Kempas Land”) was stalled, while pending approval from Majlis Bandaraya Johor Bahru (“MBJB”) for conversion of the Kempas Land from residential use to commercial use (“Land Conversion”). As at to-date, the Company has yet to receive the approval from MBJB. The unforeseen circumstances was partly due to changes in the Malaysia political administration during the Malaysia General Election in May 2018, and the adverse property market condition in Johor Bahru resulting in over-supply of commercial and residential properties. Nonetheless, the Company will continue to seek for approval from MBJB on the conversion of Kempas Land and proceed with the Company’s initial proposed plan for a mix-development property. In terms of the other option properties signed with our joint venture partners in March 2017, the Company had plans for development and is in the midst of appointing suitable consultant to conduct the feasibility report and will make the necessary announcement as and when there are further development.REVISITING FRIVEN
In our effort to re-penetrate into the bed linen business and revive the Friven brand, the Company had on 13 July 2018 signed a licensing agreement with Clover Lifestyle Sdn Bhd (“Clover”), whereby the Company granted Clover the right to use the Group’s proprietary brands, namely Friven, Allegoria, DS, and Relax at home (the “Brands”) for the sale of bedding, bed linen and bath products exclusively in Singapore and Malaysia for a duration of 12 months ending 31 July 2019 (“Licensing Period”). This was in line with the Board’s continuous effort to diversify risk and utilise the Company’s resources. As announced on 1 February 2019, if Clover is able to achieve the projected profit during the Licensing Period, the Company would consider investing further in the bedlinen business either through acquisition or joint venture with Clover. The Company targets to assess Clover’s performance in May 2019 and will closely monitor Clover’s progress.FUTURE PLANS
The Board of Directors of the Company acknowledges the protracted approval process for the Kempas Land Conversion of the Kempas Land which led to the absence of revenue generated by the Group in the financial year ended 31 December 2018. Having considered the above, the management of the Company has been exploring other property development and property investment opportunities for the Group, with a view 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 business and will continue to explore joint ventures and/or strategic alliances. 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.ACKNOWLEDGEMENTS
On behalf of the Board of Directors and management, we would like to thank our business partners, customers and shareholders for their unwavering support and staunch faith for the Group over the years. We look forward to growing the Group’s business strategically to provide greater value to our shareholders.
DR. CHANG WEI LUExecutive Chairman and Chief Executive Officer
Investor Relation Contact
Waterbrooks Consultants Pte Ltd
Tel: 6958 8002