SINGAPORE - Construction engineering company MMP Resources responded on Tuesday (March 27) to the Singapore Exchange's (SGX) queries about its financial year 2017 results.
MMP explained that its full-year FY2017 revenue of S$163,000 was less than the S$270,000 for the nine months ended Sept 30, 2017, because its wholly owned subsidiary - MMP Resources Japan KK - and its operating partner JRT Trading had deemed that earnings from its ski operations business be considered as "other income" that the group has earned.
In response to whether it had disclosed to shareholders the completion of two combined retail, and food and beverage businesses, which opened only in late November 2017, MMP said that it had announced the completion of the construction of its leased building in Niseko, Japan on Aug 1, and additional developments were included in the group's half-year results released on Aug 7.
MMP said that the total cost of renovation of 18.1 million yen (S$227,460) was financed with a US$500,000 loan from Maiora Asia Structured Finance Fund. It added that this was disclosed on April 27.
In the breakdown of its administrative expenses, professional fees for the full-year increased almost 2.5 times to S$1.8 million from S$735,000. MMP also said that the "fund raising success fees" were payable to Maiora Asset Management Pte Ltd.
MMP said that its S$0.86 million, interest-bearing loan was to Alliance Brands Limited for the sole use of Operation Alliance Global Limited (OAGL), a company focused on brand rollouts globally. It added that its board believed providing the loan would benefit the group as MMP would have a 25 per cent stake in OAGL, and that it "would strengthen the board's operational understanding of rollout and brand growth processes, especially with the group's planned focus on travel, hospitality and leisure industry".
MMP had on Feb 9, 2018 announced that the company, ABL and OAGL have agreed that the loan or loans had been disbursed directly by the company to OAGL, and that any obligations, including repayment, shall be directly owed by OAGL to the company under a new funding agreement. Accordingly, the company had entered into a deed of termination with ABL to formally terminate the funding agreement dated Sept 22, 2017.
MMP shares last traded on March 19 at S$0.004.