On Jun 14, Intraco : I06 -1.72% executive chairman and director Mak Lye Mun bought 300,000 shares at an average price of S$0.293 per share. The married deal increased his direct interest in the company from 2.04 per cent to 2.3 per cent.

 

His preceding acquisition also saw 300,000 shares purchased in a married deal at an average price of S$0.296 per share on May 30.

 

Through its subsidiaries, Intraco specialises in the distribution and trading of plastic resins and liquor. The group has evolved and expanded its services over the years.

 

It also offers a comprehensive range of passive fire protection products and services and provides mobile radio infrastructure management services in Singapore.

 

Intraco also engages in corporate finance advisory, particularly in assets securitisation through digital assets and tokenisation.

 

Mak has over 30 years of experience in the banking industry. He was appointed executive chairman of Intraco in July 2022 and was previously independent non-executive chairman from April 2021. His executive role includes leading the group&rsquo s business and operations.

 

In FY23 (ended Dec 31), Intraco recorded a profit before tax of S$3.5 million, a turnaround from a loss of S$1.3 million in FY22.

 

The improvement was due to a S$3.2 million net reversal of allowance for impairment loss, enhanced balance sheet management, and effective cost management initiatives.

 

Placed on the SGX-ST watch list with effect from Jun 6, 2023, Intraco provided a quarterly update on its unaudited financial performance and financial position on May 9.

 

The group recorded an unaudited net profit before taxation of approximately S$140,000.

 

As at Mar 31, 2024, its net asset value was approximately S$62.3 million, and the net asset value per share was approximately S$0.55 per share.

 

The group&rsquo s total cash and cash equivalents and investments in short-term securities and corporate bonds was S$27.4 million and total loans and borrowings outstanding was S$16.1 million as at Mar 31, 2024.

 

On May 9, Intraco also proposed to dispose its passive fire protection business and proposed a capital reduction.

 

Intraco plans to sell its fire protection business for $6.9 million, and distribute the bulk of the proceeds back to shareholders via capital reduction.

 

Eligible shareholders will receive total proceeds of $6.8 million, or 6 cents per share.

 

This fire protection business, held under an entity called KA Group, was acquired from Soh Yong Poon and his daughter Soh Ying Sin back in 2014.

 

Since then, they' ve continued with the management of this business.

 

According to Intraco I06 0.00% , the buyers include Soh Ying Sin and other related parties that are also existing shareholders of itself. 

 

Intraco explains that the divestment is in line with its move to shift its business model towards one that is " more scalable and aligns with the enduring technological trends in today&rsquo s world."

 

Following the sale, Intraco can focus its resources on its trading, distribution and supply chain solutions businesses in Singapore and the region.

 

The company also plans to expand its digital assets and tokenization advisory services, regulated domestic and cross -border money transfers as well as money-changing services. 

A clause in the conditional agreement with MHC&rsquo s sellers has not been fulfilled to date, says company

 

INTRACO is terminating its proposed acquisition of a 51 per cent stake in digital asset platform MHC Digital, slightly over two years after the mainboard-listed trading company inked an agreement to do so with Australian entrepreneurs Mark Carnegie and Sergei Sergienko, or MHC&rsquo s sellers.

 

On Monday (Apr 22), the company said this was because a clause in the conditional agreement with MHC&rsquo s sellers had not been fulfilled to date.

 

All parties have mutually agreed to terminate the acquisition after the sellers sent an Apr 19 letter to Intraco, which the company received on Apr 21.

 

They have also agreed not to have any claim against each other for damages, costs, compensation, or otherwise.

 

Shares of watch-listed Intraco : I06 +1.89% were trading S$0.005 or 1.9 per cent higher at S$0.27 on a cum-dividend basis as at at 3.36 pm on Monday, after the group&rsquo s latest announcement.

 

Intraco first announced its proposed investment in MHC after entering into a binding heads of agreement (HOA) with the sellers in December 2021, where conditions were revised in a second HOA inked later in the same month.

 

On Feb 7, 2022, the company announced the most recent terms of its proposed acquisition that placed the deal at about S$47.2 million in value at the time.

 

The transaction was contingent on certain conditions, including the acquisition target achieving a 12-month consolidated group net profit after tax of at least S$18.5 million within 24 months of the acquisition agreement dated Feb 7, 2022.

 

Intraco received Singapore Exchange&rsquo s in-principle approval on Apr 11, 2022. 

 

The transaction was also approved by its shareholders at its extraordinary meeting held on Jun 6 that year, with 100 per cent of eligible votes cast in favour of the deal.

On Mar 11, Intraco : I06 -3.39% executive chairman Mak Lye Mun acquired 286,000 shares in a married deal for a consideration of S$84,542. At an average price of S$0.30 per share, this took his direct interest from 0.96 to 1.21 per cent. His preceding acquisition was on Feb 27 with 225,100 shares acquired at the same average price. Mr Mak was appointed Intraco Executive Chairman in July 2022 and was previously the Independent Non-Executive Chairman of Intraco from April 2021

On Feb 27, Intraco : I06 0% executive chairman Mak Lye Mun acquired 225,100 shares for a consideration of S$67,260. At an average price of S$0.299 per share, this took his direct interest to 0.96 per cent from 0.76 per cent. He previously acquired 100,000 shares on Dec 12 at S$0.27 apiece. On Jan 12, he purchased 57,700 shares at S$0.272 each, and on Dec 28, he acquired 200,000 shares at S$0.26 per share.

 

Intraco is engaged in the distribution and trading of plastic resins and liquor, and the provision of mobile radio infrastructure management services. It is also a leading one-stop provider of passive fire-protection products and services in Singapore.

Intraco Limited reverses into earnings for the FY2023 ended Dec 31, 2023, with a net profit of $3.2 million, compared to a net loss of $1.3 million from the same period a year before. 

 

The group says that its reversal of $3.8 million in 2HFY2023 was due to partial recovery of a trade receivable, which was previously provided for by the company in the financial years ended Dec 31, 2009 to Dec 31, 2011. 

 

This refers to an allowance for impairment loss on certain trade receivables and contract assets

amounting to $0.4 million in 2HFY2023 and adjustment on receivable due to the weakening of the currency of Myanmar against the US dollar, for the balance consideration receivable from Tat Hong Holdings amounting to $0.2 million in 2HFY2023. 

 

The group&rsquo s earnings per share came in at 2.83 cents for the FY2023, a reversal from a loss per share of 1.18 cents in FY2022. 

 

However, the group&rsquo s revenue declined by 17.8% from $192.9 million in FY2022 to $158.6 million in FY2023 due mainly to the lower revenue contributed from the group&rsquo s trading and distribution business and provision of passive fire protection products and services

 

Intraco&rsquo s gross profit for the FY2023 came in 4.9% y-o-y lower at $8.2 million, from $8.6 million in the same period a year before. 

 

This was mainly due to the lower gross profit margins obtained both from the passive fire protection and trading and distribution and other business segments.

 

The group declared dividends of 0.5 cents per ordinary share for the FY2023. It will be subject to approval by shareholders at the group&rsquo s annual general meeting on Apr 25, and will be paid on May 24. 

 

The group&rsquo s net assets increased from $59.0 million as at Dec, 31, 2022, to $61.8 million as at Dec, 31, 2023. 

 

Cash and cash equivalents increased from $17.9 million as at Dec 31, 2022 to $29.6 million as at Dec 31, 2023. 

 

On acquisitions and realisations of shares, Intraco I06 -1.69% transferred 19,000 ordinary shares in the capital of Intraco Prime representing 19% to Authentic Coffee Holdings, resulting in the reduction of its shareholdings in Intraco Prime from 70% to 51%. 

 

Trading and distribution company Intraco I06 6% has guided that it will report a &ldquo significant increase&rdquo in profitability for its FY2023 ended December as compared to the net loss position in the prior financial year.

 

The increase was mainly due to a reversal of allowance for impairment loss on trade receivables made by the company&rsquo s wholly-owned subsidiary Intraco Trading in the financial years ended December 2009 to December 2011.

 

Intraco also benefited from better management of its balance sheet and cost savings arising from its cost management initiatives.

 

The company is set to release its financial results by Feb 29.

On Dec 28, Intraco : I06 -15.15% executive chairman Mak Lye Mun acquired 200,000 shares for a consideration of S$52,020. At an average price of S$0.26 per share, this took his direct interest from 0.53 per cent to 0.71 per cent. His preceding acquisition was on Dec 12, with 100,000 shares acquired at S$0.27 per share.

 

Intraco is engaged in the distribution and trading of plastic resins and liquor, provision of mobile radio infrastructure management services and is a leading one-stop provider of passive fire protection products and services in Singapore. Intraco has also diversified into businesses related to digital assets, aiming to offer to listed and unlisted corporates and accredited investors a suite of strategic advisory services and products. The company is headquartered in Singapore and has presence in key emerging markets in Vietnam, Indonesia, Malaysia, and China. Intraco was placed on the watch-list of the Singapore Exchange Securities Trading Limited (the &ldquo SGX-ST&rdquo ) with effect from June 6, 2023, pursuant to Rule 1311(1) of the Listing Manual of the SGX-ST. In its most recent quarterly update on Nov 11, the group recorded an unaudited net profit before taxation of about S$0.2 million for 9MFY23 (ended Sep 30) compared to a loss of S$0.5 million for 9MFY22. As at Sep 30, 2023, the group&rsquo s net asset value was about S$59.3 million and net asset value per share was S$0.53 per share.

 

Mak was appointed executive chairman of Intraco in July 2022, and prior to that, he was the independent non-executive chairman of Intraco from April 29, 2021. With over 30 years of experience in the banking industry, Mak has held various significant roles. He began his career at Citicorp Investment Bank (Singapore) and later held senior positions in the corporate finance divisions of Vickers Ballas & Co, EY, and OCBC. In 2008, Mak was appointed as the CEO of CIMB Bank Singapore and country head, where he concentrated on enhancing synergy and value across the Singapore franchise. He held these roles until his retirement in December 2019. Subsequently, from January 2020 to March 2021, he served as an adviser to the CEO of CIMB Group.

 

Institutions are net buyers of Singapore stocks over the four trading sessions through to Jan 4, with S$90 million of net institutional inflow, as 15 primary-listed companies conducted buybacks with a total consideration of S$1.3 million. 

INSTITUTIONS were net buyers of Singapore stocks over the four trading sessions through to Jan 4, with S$90 million of net institutional inflow, as 15 primary-listed companies conducted buybacks with a total consideration of S$1.3 million.

 

OUE : LJ3 -0.85% led the consideration tally and bought back 241,700 shares at an average price of S$1.18 per share. This brings the total number of shares bought back on its current mandate to 3.72 million shares, or 0.44 per cent of OUE&rsquo s issued shares excluding treasury shares as at the date of the share buyback resolution. Food Empire : F03 0% bought back 200,000 shares at an average price of S$1.13 per share and has now bought back 1.37 per cent of its issued shares excluding treasury shares under its current mandate.

 

In the 2023 calendar year, 69 SGX primary-listed companies bought back shares by way of market acquisitions with a consideration totalling S$743 million. The S$743 million in buyback consideration followed more than 80 primary-listed companies on SGX buying back shares with a consideration totalling S$1.692 billion in 2022 and S$1.186 billion in 2021.

 

The decline in 2023 buyback consideration from 2022 was partially attributed to Keppel : BN4 +0.86%not conducting buybacks in 2023, following on from its S$500 million of buyback consideration in 2022. Its comparatively high buyback consideration in 2022 was on the back of the global asset manager and operator looking to create currency for potential M& A transactions. On Nov 29, 2023, Keppel announced an agreement with Aermont Capital Group to acquire an initial 50 per cent stake in the leading European real estate manager for a consideration of up to S$517 million. Keppel relayed it could fund this transaction through a combination of cash and treasury shares acquired via share buybacks in 2022.

 

Leading the net institutional inflow over the four sessions were DBS : D05 +0.49%, Keppel : BN4 +0.86%, UOB : U11 +0.93%, Thai Beverage : Y92 0%, Genting Singapore : G13 -1.01%, OCBC : O39 +0.55%, Sembcorp Industries : U96 +1.14%, Venture : V03 +1.19%, Wilmar International : F34 +0.28%and Jardine Matheson Holdings : J36 -0.12%. Meanwhile, Singtel : Z74 -1.26%, SIA : C6L +0.47%, CapitaLand Investment : 9CI 0%, Seatrium : S51 0%, Mapletree Pan Asia Commercial Trust : N2IU -0.66%, Singapore Technologies Engineering : S63 -0.53%, Mapletree Logistics Trust : M44U 0%, Sheng Siong : OV8 0%, iFAST : AIY +0.25% and Frasers Logistics & Commercial Trust : BUOU -0.88% led the net institutional outflows.

 

Close to 50 changes to director interests and substantial shareholdings filed for nearly 30 primary-listed stocks. Directors or CEOs filed 12 acquisitions and no disposals while substantial shareholders filed six acquisitions and five disposals.

 

Intraco I06 0.00% has announced the entry into a share transfer agreement between its wholly-owned subsidiary Intraco Trading and Authentic Coffee Holdings, both of which had entered into a joint venture (JV) agreement on Sept 6, 2022.

 

Intraco Trading will sell 19,000 ordinary shares in the capital of Intraco Prime, a separate Intraco subsidiary, to Authentic Coffee. The share transfer for a nominal consideration represents 19% of the total number of ordinary shares in the share capital of Intraco Prime.

 

After the transfer, Intraco Trading and Authentic Coffee will hold 51% and 49% of the shares in Intraco Prime, respectively.  

 

A second share transfer will see Intraco Trading&rsquo s 51% stake in Intraco Prime sold to Intraco for a nominal consideration of $1.00.

 

After the second transfer, Intraco will hold a 51% stake in Intraco Prime, which will become its direct subsidiary. Authentic Coffee&rsquo s 49% stake in Intraco Prime will remain.

 

Intraco says that both the company and Authentic Holdings have decided to concentrate their resources and efforts on Intraco Prime&rsquo s position as the exclusive distributor of National Cellar 1573 Chinese baijiu liquor.

 

The company expects both share transfers to be completed on Dec 1.

On Oct 9, Intraco executive chairman and director Mak Lye Mun acquired 400,000 shares at an average price of S$0.28 per share. With a consideration of S$110,600, this took his direct interest in the company to 0.36 per cent.

 

Intraco was placed on the watch list of the Singapore Exchange with effect from Jun 6, 2023, in accordance with Rule 1311(1) of the SGX-ST Listing Manual.

 

On Aug 7, the company released its unaudited financial statements for its H1FY23 (ended Jun 30), recording a net profit of S$0.4 million compared to a loss of S$1.0 million for H1FY22.

 

Mak was appointed executive chairman on Jul 15, 2022. He was independent non-executive chairman of Intraco from Apr 29, 2021.

 

He has over 30 years of experience in the banking industry and was made CEO of CIMB Bank Singapore and country head in 2008, where he focused on delivering greater synergy and value across the Singapore franchise. He held both roles until his retirement in December 2019.

 

He was subsequently appointed adviser to the CEO of CIMB Group from Jan 2020 till his retirement in March 2021.

 

Intraco Limited says it expects to report a net profit before tax for the 1HFY2023 ended June 30 based on a preliminary review of the unaudited management accounts and the information of the company currently available.

 

In a profit guidance filing, Intraco&rsquo s expected net profit before tax for the first half of FY2023 is compared to the net loss before tax for the same period in FY2022.

 

The anticipated turnaround of the company&rsquo s results is mainly due to better management of its balance sheet and cost savings arising from cost management initiatives. Intraco also wrote back some provisions previously made in the financial year ended 31 December 2022.

 

Intraco was placed on SGX-ST&rsquo s watch-list on June 5. For a company to be placed on SGX-ST' s watch-list, it would have to have suffered from three straight years of financial losses.

 

The company has advised that further details of its performance will be set out in its unaudited financial results for 1HFY2023, to be released on or before Aug 7.

 

On June 22, Intraco I06 0.00% launched its first issue under the SDAX Commercial Paper Facility Programme (the SGD CP Series 001) for a tenor of 30 days at an interest rate of 4.1% per annum. The company says it intends to raise up to $2.0 million mainly for its trading and distribution business&rsquo s working capital purposes. The offer period will end on June 28 and the SGD CP Series 001 tokens will be issued and listed on the SDAX Exchange on the same day.

 

On June 20, Valuemax Group launched its 3-month Series 001 SDAX Issuance of commercial paper at an interest rate of 5.15%, and is looking to raise between $10 million and $20 million. The digital securities will be traded on the SDAX Exchange.

Intraco Limited I06 0.00% , Jadason Enterprises J03 0.00% and Datapulse Technology BKW 0.00% will be placed on the SGX-ST&rsquo s watch-list with effect from June 6. The move comes after the companies reported losses for the last three financial years (FY).

 

For the FY2022 ended Dec 31, 2022, Intraco reported a loss of $1.34 million, 33.9% deeper than the $998,000 loss in FY2021. The company reported a loss of $12.86 million in FY2020. Jadason Enterprises reported a loss of $6.95 million for the FY2022 ended Dec 31, 2022. The company also reported losses of $10.64 million and $3 million for FY2021 and FY2020 respectively. For the FY2022 ended July 31, 2022, Datapulse reported a loss of $3.31 million while the company reported a loss of $3.67 million for the FY2021. In FY2020, Datapulse reported a loss of $5.75 million.

 

After being put in the watch-list, the companies must now take steps to exit the list within 36 months from June 6. They will be able to apply to be removed from the list if they record consolidated pre-tax profits for their latest financial years. They should each also have an average daily market capitalisation of $40 million or more over the past six months. Should the companies fail to exit the list within the stipulated period, they would either be delisted or the trading of their shares would be suspended.

 

As required by rule 1313(2), the companies will have to provide quarterly updates on their efforts and progress made in meeting the list&rsquo s exit criteria. Any material developments that occur between the quarterly updates will also have to be announced.

 

In their respective statements on June 5, the companies said that it will be business as usual for the company and that trading in their securities will also continue as per usual.

 

&ldquo The board and management will endeavour to comply with the financial exit criteria within 36 months from June 6 and will release necessary announcements when appropriate,&rdquo adds Intraco.

Intraco Limited&rsquo s 70%-owned subsidiary, Intraco Prime, has entered into an exclusive distribution agreement and Singapore co-marketing memorandum with Luzhou Laojiao International Development (HK) Co., Ltd. on Dec 21.

 

Under the agreements, Intraco Prime will exclusively distribute the National Cellar 1573 series of Chinese baijiu in Singapore for five years from Dec 28 to Dec 31, 2027.

 

Luzhou Laojiao International is a subsidiary of Luzhou Laojiao Company Limited. The company is headquartered in Luzhou, Sichuan Province, China.

 

MAINBOARD-LISTED trading company Intraco Intraco: I06 0% has agreed to acquire a 51 per cent stake worth about S$47.2 million in digital asset platform MHC Singapore, the company said in a bourse filing on Monday (Feb 7).

 

This comes after the companies entered into a binding heads of agreement (HOA) on Dec 13, 2021, which was revised in a second binding HOA on Dec 22, 2021.

 

MHC Singapore, to be incorporated in Singapore by Australian entrepreneurs Mark Carnegie and Sergei Sergienko with equal shareholdings, will take over the relevant businesses and assets of Australian digital asset platform MHC Digital Group.

 

The deal is subject to shareholder approval, which will be sought, among other things, in an upcoming extraordinary general meeting.

 

The proposed transaction is also conditional upon the fulfilment of certain conditions - including MHC Singapore achieving a 12-month consolidated group net profit after tax of at least S$18.5 million within 24 months of the acquisition agreement dated Feb 7. This is down from the S$20 million target in the second HOA, which had already been reduced from S$24 million in the first HOA.

 

Other changes in the new agreement include reducing the issuance of warrants in payment to 52.5 million from 58 million, with each carrying the right to subscribe for 1 new share in the company. The issuance of 42 million new shares in payment at an issue price of S$0.50 remains unchanged. Both comprise the total consideration of around S$47.2 million.

 

The warrants will not be listed or traded on the Singapore Exchange and will be exercisable by each seller at any time within 5 years, down from 7 years, from the date of issue. This is unless Carnegie and Sergienko each own more than 14.5 per cent of the company.

 

There is no meaningful historical book value, net tangible asset value or net profit attributable to the shares or assets as MHC Singapore will be a new company to be incorporated and the scope of the assets is not finalised, the statement noted.

 

Carnegie and Sergienko also must not request a board seat in Intraco if they each hold shares and/or securities convertible into 15 per cent or more of the total issued share capital.

 

Separately, Intraco has agreed to issue 40 million warrants at an exercise price of S$0.50 to Wong Fong Fui, chairman and group chief executive officer of Boustead Singapore. He previously introduced MHC Digital Group and the deal to Intraco.

 

Mak Lye Mun, the chairman and independent director of Intraco, is also an independent director of Boustead.

 

The warrants can be exercisable at any time within 4 years from the date of issue, unless Wong owns more than 14.5 per cent of the company or unless the outstanding share capital of Intraco exceeds 283 million shares.

 

The group intends to expand its fund management offerings and incorporate new trading strategies in the development of traditional over-the-counter execution and market-making services.

 

It also plans to provide corporate finance advisory services focused on leveraging an expanded balance sheet to provide a gateway to institutional investors to deploy capital into traditional financial products with exposure to the metaverse and digital asset ecosystem.