Emerging Towns & Cities Singapore Ltd · SGX:1C0
Emerging Towns & Cities Singapore — Cedar Strategic Holdings — Investor Presentation (2016)
32 slides from Emerging Towns & Cities Singapore's investor presentation, 2016
Slide 1: Cedar Strategic Holdings Ltd Corporate Presentation 2016
Cedar Strategic Holdings Ltd Corporate Presentation 2016 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward looking statements as a result of a number of risks, uncertainties and assumptions. Represen
Slide 3: Corporate Profile
Corporate Profile • Incorporated in Singapore on 17 October 1980 – Listed on the Catalist board of SGX • Formerly known as China Titanium – Formerly a titanium dioxide distributor in China – Change of name to Cedar Strategic Holdings Ltd in December 2012 following restructuring of core business to r
Slide 4: Business Focus
Business Focus • Investment in quality assets with a focus on emerging cities Development properties Investment properties Other related businesses • First project is based in China but will eventually also diversify exposure going forward Currently exploring strategic investments in propert
Slide 5: Shareholding Structure
Shareholding Structure As at 30 June 2016 As at 14 April 2015 Name of Shareholder % Name of Shareholder % 1 Luo Shandong 10.34 1 Sinowealth Capital Limited 6.28 2 Teo Cheng Kwee 4.82 2 Jadeite Capital 6.28 3 Wong Pak Him Patrick 4.34 3 Christopher Chong Meng Tak 3.49 4 Christopher Chong Meng Tak 2.6
Slide 6: Board of Directors
Board of Directors Mr. Christopher Chong Meng Tak Non-executive Chairman, Chairman of the Nominating & Corporate Governance Committee and Remuneration Committee and a member of the Audit Committee Appointed to the Board on 24 June 2015 • Significant experience in capital markets, securities law, cor
Slide 7: Board of Directors
Board of Directors Mr. Peter Tan Mr. Teo Cheng Kwee Independent Director, Chairman of the Audit Committee and a member of the Nominating & Corporate Non-executive Director and a member of the Governance Committee and the Remuneration Remuneration Committee Committee Appointed to the Board on 21 July
Slide 8: Management Team
Management Team Mr. Joseph Lim Chief Financial Officer Appointed on 1 October 2015 • Brings more than 20 years of experience in accounting, auditing, treasury, risk management and investments with extensive background in public companies listed on SGX-ST and ASX Mr. Yang Cha Chief Development Office
Slide 9: Requirements to Resume Trading
Requirements to Resume Trading The New Board fulfilled the following requirements which contributed to the resumption of trading: Sourced for funding for working capital Completed the Special Audit Implemented internal controls to address financial, operational and compliance risks In the pr
Slide 10: Requirements of Special Audit
Requirements of Special Audit Follow-up Actions Completed Expected Completion Singapore Actions, including recovery, against ex-directors and CFO 2H2016 + Recovery of S$1.5 million 2H2016 Follow up on proof of S$3.6 million placement proceeds Follow up on S$3.6 million bond Follow up on 1% M&A c
Slide 11: Follow-up of Special Audit
Follow-up of Special Audit Follow-up Actions Completed Expected Completion People's Republic of China Discovery of transfer Settlement of TCI issues 2017 Recovery of RMB180 million and related interest 2017 Recovery of PRC subsidiaries and related investments Settlement of Trechance related issu
Slide 12: Follow-up of Special Audit
Follow-up of Special Audit Follow-up Actions Completed Expected Completion Company-related Enterprise Risk Assessment Internal Audit Code of Ethics Whistleblowing policy Share trading policy Authority matrix 12
Slide 13: Overview of Daya Bay Project
Overview of Daya Bay Project • How the project was discovered: Referred by a Director • Location: Daya Bay District, Huizhou, Guangdong Province, PRC • Acquisition cost: Aggregate consideration of RMB 48 million for 60% stake Distressed property, resulting in a negative goodwill of RMB 21.2 mill
Slide 14: Overview of Daya Bay Project
Overview of Daya Bay Project • Targeted at domestic tourism market; particularly a draw during summer • Biggest seafood market and food paradise in Shenzhen • Government support: creation of a second Sanya supported by tourism resources and relevant facilities • Ideally situated in Pearl River Delta
Slide 15: Average Selling Prices
Average Selling Prices Daya Bay Trails Bay: Price range per square meter Project: RMB14,000 psm (psm) of properties within a 500m RMB15,000 psm radius of Daya Bay Project: RMB11,000 – 16,000 psm Daya Bay Project: RMB15,000 psm Repulse Bay: RMB11,000 - 16,000 psm Aviation Yuan Island Price range
Slide 16: Development Property Updates
Development Property Updates Sales value No. of units Total floor area (sqm) (RMB’000) Total 402,147 717 31,220 Sold (SPA signed) 367,566 632 27,750 Unsold 34,581 85 3,470 Sold (SPA signed & stated at gross) Total Amount recognised in quarter 2Q2016 1Q2016 4Q2015* 2Q2016 1Q2016 4Q2015* Sales value 4
Slide 17: Rental Property Updates
Rental Property Updates Properties for lease Recurring revenue from 399 units rented out to e-Stay for five years at RMB 2,000/unit per month from December 2015 e-Stay: Third party hotel operator with over 1,000 properties under management in China Under the rental contract, price per unit i
Slide 18: Financial Highlights
Financial Highlights RMB (Million) 2Q2016 1Q2016 Change (%) FY2015 FY2014 Change (%) Revenue 42.7 24.5 74.2 26.3 170.7 (84.6) Gross profit 13.6 4.7 n.m. 0.9 60.0 (98.4) Other income 0.04 0.01 n.m.* 21.9# 0.09 n.m. Other non- - - n.m. (2.3) (284.7)^ (99.2) operating expenses Profit/(Loss) for the 0.3
Slide 19: Financial Highlights
Financial Highlights Breakdown of revenue Revenue, Gross Profit and contribution Net Profit attributable to Owners (RMB ‘mil) 5.6%; (RMB 2.4 mil) 50.0 Sale of 42.7 property units 40.0 Recurring 94.4%; (RMB 40.2mil) Income from 30.0 rental of 26.3 Revenue 24.5 holiday apartments Gross Profit 20.0 13.
Slide 20: Balance Sheet
Balance Sheet As at 30 Jun 2016 As at 31 Dec 2015 (RMB ’000) (RMB ’000) Development properties* 121,897 169,085 Cash and cash equivalents (Group) 56,796˜ 18,356 • Cash and cash equivalents (Company) 26,763 544 Bank borrowings - - Financial liabilities related to Daya 104,593 101,980 Bay Project Non-
Slide 21: Outlook of China and Emerging Cities
Outlook of China and Emerging Cities • China’s Tier-2 and Tier-3 cities Introduction of favourable monetary and regulatory measures Easing of property purchase restrictions Lowering of interest rates by central bank Implementation of two child policy Upward monthly price trend in Huizhou r
Slide 22: Thank You
Thank You Investor Relations: Mr. Chong Yap, Tok Ms. Stephanie Chong csh@financialpr.com.sg Tel: (+65) 6438 2990 22
Slide 23: Agenda
Agenda • Appendix A • Appendix B 23
Slide 24: Overview of events
Overview of events • 14 April 2015 Conversion of trading halt to a trading suspension Inability of management to release FY2014 results on time Issue of profit guidance and proposed disposal of Trechance Holdings Ltd Unusual trading volume Announced intentions to engage a special auditor
Slide 25: Overview of events
Overview of events • 11 June 2015 Shareholder requisition for removal of Directors and appointment of new Directors • 24 June 2015 Appointment of three members for the New Board 25
Slide 26: Overview of events
Overview of events • 3 July 2015 Appointed Baker Tilly Consultancy as “Special Auditor” 1st letter of engagement to shareholders Signed Investment and Placement Agreements (completed issue of new ordinary shares on 31 March 2016) Tight current cash flow for day-to-day operations For workin
Slide 27: Overview of events
Overview of events • 25 September 2015 3rd letter of engagement to shareholders • 1 October 2015 Appointment of CFO • 2 October 2015 Signing of SPA for acquisition of Daya Bay project • 12 October 2015 Update on loss of Huamao and Shunhe Listed in the Abnormal Business Catalog as a result
Slide 28: Overview of events
Overview of events • 4 November 2015 Completion of acquisition of Daya Bay Project • 19 November 2015 Update on loss of Huacheng and Shengxiang Loss of effective control of businesses Listed in the Abnormal Business Catalog as a result of failing to make public its FY2013 and FY2014 annual r
Slide 29: Overview of events
Overview of events • 30 November 2015 Notice of AGM and AR2014 Notice of EGM and Circular • 15 December 2015 AGM EGM Release of 1Q2015, 2Q2015 and 3Q2015 results announcements • 18 January 2016 Update on disposal of Yess Le Green and West Themes Pte Ltd Recoverability of S$1.5 million
Slide 30: Agenda
Agenda • Appendix A • Appendix B 30
Slide 31: Special Audit
Special Audit Scope / Coverage of Special Auditors’ Report: 1. Divestment of the titanium dioxide business 2. Acquisition and proposed divestment of Trechance Group 3. Acquisition and divestment of Yess Le Green and West Themes 4. Acquisition of Futura Asset Holdings 5. Severance payments 6. Disburs
Slide 32: Conclusion of Special Audit
Conclusion of Special Audit 1. Weaknesses and/or lapses in corporate governance, internal controls and possible non-compliance with the Catalist Rules 2. Absence of documentation or recordings of corporate actions 3. Current Board advised to seek legal advice and follow up on the various matters men
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