SINGAPORE - The following companies saw new developments which may affect trading of their shares on Tuesday (July 10):
Rich Capital: The independent auditor of Rich Capital Holdings, Foo Kon Tan LLP, has flagged a more challenging assessment of the property company's ability to continue as a going concern and qualified their audit opinion. Given expected cash outflows for the next 12 months, Rich Capital faced "a material uncertainty which may cast significant doubt on the ability of the group and the company to continue as a going concern," the auditor said. Foo Kon Tan also qualified its audit opinion, citing difficulties in ascertaining the valuation of certain mining rights and the recoverability of an investment.
RHT Health Trust: The auditors of RHT Health Trust from Ernst & Young have flagged a material uncertainty related to the trust's ability to continue as a going concern. The EY auditors noted that RHT's current liabilities exceeded its current assets by $129.4 million as at March 31, 2018. Included in these current liabilities is $120 million of bonds due in January 2019. "The ability of the group to continue as a going concern is dependent on the group's ability to obtain refinancing to repay the bonds … and generating cashflows from its operations," they said.
OKP Holdings: The Land Transport Authority (LTA) and a unit of homegrown construction company OKP Holdings have mutually agreed to terminate a contract to build TPE-PIE Changi viaduct effectively from Monday. A new replacement tender will be called later this month, LTA said in a media statement on Monday afternoon. The termination is expected to have a negative impact on the earnings per share and net tangible assets of the company and the subsidiary, Or Kim Peow Contractors, for the current financial year ending Dec 31.
Top Glove: Top Glove Corporation alleged that based on an interim report by an independent accounting firm, there was overstatement of assets and overvaluation to the tune of RM714.9 million (S$240 million) in Aspion, a company it had acquired from Adventa Capital in April this year. Top Glove said it had undertaken its own investigations and hired an accounting firm to investigate the firm once it it had discovered alleged "irregularities in certain balance sheet items" of Aspion, in particular inventories and plant and machinery, shortly after it took over the firm.
Yanlord Land: Real estate developer Yanlord Land Group has acquired a 154,500 square metre in gross floor area (GFA), prime residential development site in Hangzhou for approximately 2.94 billion yuan (S$600 million) through a public land auction. The purchase was made through its wholly-owned subsidiary Hangzhou Renyuan Property Development Co. Situated within the Zhijiang Resort Centre of Xihu District, the site has a plot ratio of up to 2.0 times and benefits from the local government's initiatives to develop the area into a key cultural and lifestyle centre, Yanlord said.
