Sino Construction sells $122.5 million of non-performing assets as part of restructuring

SINGAPORE - Mainboard-listed Sino Construction announced on Thursday that it has sold $122.5 million worth of non-performing assets as part of a restructuring that began in February.

The company said it intends to use the proceeds to invest in low-risk and low- to medium-capital-intensive projects that will "enable the Group to pay a consistent dividend over time".

The company sold Guildford Coal for $70.9 million, JEMS Exploration for $25.2 million and Signet Coking Coal International for $26.4 million as part of the restructuring, which began on Feb 10, 2015.

Sino Construction said that Magnum Modular Power Generation, a joint venture between its subsidiary Magnum Energy and Primeforth Renewable Energy Limited, completed its first micro power plant in South Korea on April 20. The company said the micro power plant market would allow it to explore the renewable energy sector, noting that it would provide "a sustainable model for consistent returns".

Mr Drew Ethan Madacsi, the group's interim executive director, said the aim is to develop "regional energy networks" that could function independently of national electricity utilities in places such as mines and remote townships.

The company, which saw the resignation of the previous executive director and non-executive chairman, swung to a $7 million net loss for its latest quarter ended Dec 31, 2014, from a $2.18 million net profit in the year ago period. Revenue for the quarter was $1.12 million versus nil in the restated period last year.

In March this year, it raised S$6.5 million through the placement of 262 million new shares to four investors at 2.48 Singapore cents a share - a discount of 9.8 per cent to the weighted average price of 2.75 cents for trades done on March 26, 2015.

Sino Construction shares were trading down 0.1 cent at 3.9 cents at 10.45am on Thursday.