Emerging Towns & Cities Singapore (ETC) is advising shareholders that it is expecting to report a loss for its 1HFY2021 ended June. 

 

The loss is mainly attributable to the company' s ongoing process of finalising the valuations on the group&rsquo s investment properties as at end-June. Based on indicative values, the company expects to recognise fair value losses on the group&rsquo s investment properties at the Golden City project, which are non-cash in nature write-down of the group&rsquo s development properties at the Golden City project in 1HFY2021, which are non-cash in nature and lower revenue recognised for the sales of Golden City property units in 1HFY2021.

 

This profit guidance is based on a preliminary review of the unaudited financial results of the group for 1HFY2021. The group is still in the process of finalising the financial results for 1HFY2021 and further details of its financial performance for 1HFY2021 will be disclosed when it announces its 1HFY2021 financial results on or about September 16, 2021.

 

To recap, the group recorded a loss of $2.6 million in its FY2020 ended December, compared to earnings of $6.7 million in FY2019. This was as revenue dropped 32.8% y-o-y to $27.8 million, mainly due to fewer Golden City property units recognised as revenue in FY2020 -- 50 units were recognised as revenue in FY2020 as compared to 107 units in FY2019. 

[SINGAPORE] The Singapore Exchange (SGX) on Friday issued a list of queries to developer Emerging Towns & Cities (ETC) over its project in Myanmar after a rights group critisised the company for doing business with the military.

 

ETC is among companies being called out by activists over ties to the Myamar military, which seized power from the elected government in a Feb 1 coup, sparking widespread protests in the country and international condemnation.

 

Singapore is the biggest source of foreign investment into Myanmar, according to the governments of both countries.

 

Singapore-headquartered payments firm Coda told Reuters on Friday it had deactivated military-linked telecom operator Mytel from its portfolio of payment channels. This means that Mytel customers cannot make purchases using Coda' s services.

 

ETC is developing a commercial and residential project in Myanmar called Golden City, which is being built on land leased from the Myanmar army.

 

The development has a total tenure of 70 years, including extensions, after which the entire project transfers to the lessor - the army' s office of the quartermaster general, according to ETC' s annual report.

 

ETC, through a subsidiary, paid US$24.9 million for a 49 per cent stake in Golden City.

 

Trading in ETC shares, which are listed on SGX' s Catalist platform for smaller companies, were halted through Friday.

 

The company did not respond to a request for comment.

 

In its report, rights group Justice for Myanmar said Golden City " channels millions of dollars" to the army.

 

SGX' s queries include requiring ETC to elaborate on its fundraising efforts, status updates and details of the Golden City project by March 1.

 

The SGX also told ETC to put on hold a proposed placement exercise and other fundraising activities until it provides clarity on issues raised by the report.