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cmeng
The bold part certainly brings out the red flag.
The bold part certainly brings out the red flag.
From the Annual Report.
Material Uncertainty Related to Going Concern
We draw attention to Note 2.1 to these financial statements, which indicates that the current liabilities of the Group
and of ECW exceeded the current assets by S$326,517,000 and S$31,883,000 respectively. These events or conditions,
along with other matters as set forth in Note 2.1, indicate that a material uncertainty exists that may cast significant
doubt on the ability of the Group and of ECW to continue as going concerns. Our opinion is not modified in respect
of this matter.
cmengchan ( Date: 09-Apr-2019 07:02) Posted:
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cheng,
Why don' t you write to the IR of EC world and pose the question to them?
Why don' t you write to the IR of EC world and pose the question to them?
chengwh1 ( Date: 08-Apr-2019 22:15) Posted:
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The IAR is referring to current liabilities only. That means liabilities that need to be paid with 12 months.
We draw attention to Note 2.1 to these financial statements, which indicates that the current liabilities of the Group and of ECW exceeded the current assets by S$326,517,000 and S$31,883,000 respectively.
We draw attention to Note 2.1 to these financial statements, which indicates that the current liabilities of the Group and of ECW exceeded the current assets by S$326,517,000 and S$31,883,000 respectively.
chengwh1 ( Date: 08-Apr-2019 22:15) Posted:
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The Independent Auditor reported in the LATEST IAR that her assets ARE LESS THAN her liabilities !
tyk2323 ( Date: 08-Apr-2019 19:33) Posted:
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Thanks for the explanation! Touch wood, worse case scenario, If liquidate liao pay off debts we still couldnt get money? The assets is more than liabilities.
chengwh1 ( Date: 08-Apr-2019 12:23) Posted:
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I am not familiar with available funding options. However, each has its costs. Eg. Bonds will likely need rating agency like Moody to give a risk rate. Also need to have sufficient demand and interest in your bonds, etc. Besides, this is a small REIT, koght not attract much interest. I think only 2 brokerages have analysts covering this company. Not as established as CapMall or Mapletree REITS.
Whatever the funding, probably best to be in RMB currency since the business expenses are in local currency. Only need to pay dividends in SGD. So I think bank loans is probably the cheapest way. Lets hope we hear info soon, that will clear the uncertainty.
Whatever the funding, probably best to be in RMB currency since the business expenses are in local currency. Only need to pay dividends in SGD. So I think bank loans is probably the cheapest way. Lets hope we hear info soon, that will clear the uncertainty.
Tq bro for the detailed write-up,... 
ECWR can always opt for other methods to raise funds to help them settle their loans, right ? Some eg would be :-
1) Issuing bonds.
2) Issuing perpetual securities.
2) EFRs.
How abt these ways ?
ECWR can always opt for other methods to raise funds to help them settle their loans, right ? Some eg would be :-
1) Issuing bonds.
2) Issuing perpetual securities.
2) EFRs.
How abt these ways ?
cmengchan ( Date: 07-Apr-2019 21:23) Posted:
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Bro,... nav means net asset value, and the word net means clean, without liabilities. Secondly, if you look at the Statement of Total Financial Position (aka Balance Sheets), the nav appears right at the bottom after all the Current and Non-current Assets minussing out the Current and Non-current Liabilities.
I' m afraid we may not get back anything at all if there is a liquidation because the senior creditors ' in front' of us will ' sapu' everything first before our turn to claim.
I stand corrected to my statements in the above if there is any error, bros,...
I' m afraid we may not get back anything at all if there is a liquidation because the senior creditors ' in front' of us will ' sapu' everything first before our turn to claim.
I stand corrected to my statements in the above if there is any error, bros,...
tyk2323 ( Date: 07-Apr-2019 19:38) Posted:
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https://www.fool.sg/2019/04/07/3-takeaways-from-ec-world-real-estate-investment-trusts-2018-annual-report/
Thanks bro.
NAV should exclude loans (liabilities).
Another opinion that why I think China bank loans refinancing is not very optimal now, is due to on-going US-China Trade war. I can see news indicating that loans to Chinese manufacturers are heavily vetted by banks. I have seen news describing many Chinese exporters that are dependent on US trade have closed down, leaving workers unpaid and bank loans soured.
https://www.reuters.com/article/lenders-brace-for-trade-war/lenders-brace-for-trade-war-idUSL4N1WS3D0
BEIJING: Beijing is keen to show results after four rounds of policy easing, so China' s big banks are playing along, highlighting their efforts to boost lending to cash-starved small firms, offering collateral waivers and setting loan targets.
But in reality, banks' loan eligibility requirements for small and medium-sized enterprises (SMEs) remain stringent, making it too difficult or too expensive for them to borrow, according to bankers and company executives. https://www.channelnewsasia.com/news/business/lost-in-transmission--china-s-small-firms-get-more-loans-on-paper-but-not-in-reality-10832330
Which is why I suspect the ROFR to buy another asset from sponsor was called off (announced on Oct 2018). REITS need to borrow to fund acquisitions since 90% of income has to be paid out as dividends. I think its difficult to get new loans or the loans will not be attractive. Hence, even refinancing the existing loans at favorable rates is a challenge. I think with the Master Lease signed, it might be easier to get the loans now. Its basically having the sponsor Forchn Holdings implicitly provding guarrantee or EC World. Forchn seems to have business links to Alibaba group in providing logistics services.
Another opinion that why I think China bank loans refinancing is not very optimal now, is due to on-going US-China Trade war. I can see news indicating that loans to Chinese manufacturers are heavily vetted by banks. I have seen news describing many Chinese exporters that are dependent on US trade have closed down, leaving workers unpaid and bank loans soured.
https://www.reuters.com/article/lenders-brace-for-trade-war/lenders-brace-for-trade-war-idUSL4N1WS3D0
BEIJING: Beijing is keen to show results after four rounds of policy easing, so China' s big banks are playing along, highlighting their efforts to boost lending to cash-starved small firms, offering collateral waivers and setting loan targets.
But in reality, banks' loan eligibility requirements for small and medium-sized enterprises (SMEs) remain stringent, making it too difficult or too expensive for them to borrow, according to bankers and company executives. https://www.channelnewsasia.com/news/business/lost-in-transmission--china-s-small-firms-get-more-loans-on-paper-but-not-in-reality-10832330
Which is why I suspect the ROFR to buy another asset from sponsor was called off (announced on Oct 2018). REITS need to borrow to fund acquisitions since 90% of income has to be paid out as dividends. I think its difficult to get new loans or the loans will not be attractive. Hence, even refinancing the existing loans at favorable rates is a challenge. I think with the Master Lease signed, it might be easier to get the loans now. Its basically having the sponsor Forchn Holdings implicitly provding guarrantee or EC World. Forchn seems to have business links to Alibaba group in providing logistics services.
Hi 1 noob question. The NAV of $0.87 is including or excluding the loans? If include loans does it means we will get back less than $0.87 in the event of liquidation?
Personally I think EC world will not have problem to refinance the loans.
Personally I think EC world will not have problem to refinance the loans.
I think the 1st step was the extension of Master Lease. That will lock in the cashflow certainty from reputable companies.
With this strong counter parties as cashflow, inthink it will reduce loan interest during refinancing. Banks will be willing to give better terms if risks is lower. Let's see how this pans out. Just my opinion why the refinancing took longer that anticipated.
With this strong counter parties as cashflow, inthink it will reduce loan interest during refinancing. Banks will be willing to give better terms if risks is lower. Let's see how this pans out. Just my opinion why the refinancing took longer that anticipated.
chengwh1 ( Date: 07-Apr-2019 17:28) Posted:
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Thank you, Meng,... on my side, I can read the financial reports, and I can see that net liability of S$31,883,000 in the books. But where do you see that figure : S$326,517,000 in the books ?
I read there are other problems too in Note 2.1 besides refinancing the 400mil plus loan that needs to be repayable within one year,....
And finally : there are no supporting documents that confirms ECWR is able to refinance the 400Mil+ that is due to be repaid by JUly this year,... this is the reason why the auditors qualified their report for the AR2018.
I read there are other problems too in Note 2.1 besides refinancing the 400mil plus loan that needs to be repayable within one year,....
And finally : there are no supporting documents that confirms ECWR is able to refinance the 400Mil+ that is due to be repaid by JUly this year,... this is the reason why the auditors qualified their report for the AR2018.
cmengchan ( Date: 07-Apr-2019 10:32) Posted:
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From the Annual Report.
Material Uncertainty Related to Going Concern
We draw attention to Note 2.1 to these financial statements, which indicates that the current liabilities of the Group
and of ECW exceeded the current assets by S$326,517,000 and S$31,883,000 respectively. These events or conditions,
along with other matters as set forth in Note 2.1, indicate that a material uncertainty exists that may cast significant
doubt on the ability of the Group and of ECW to continue as going concerns. Our opinion is not modified in respect
of this matter.
Material Uncertainty Related to Going Concern
We draw attention to Note 2.1 to these financial statements, which indicates that the current liabilities of the Group
and of ECW exceeded the current assets by S$326,517,000 and S$31,883,000 respectively. These events or conditions,
along with other matters as set forth in Note 2.1, indicate that a material uncertainty exists that may cast significant
doubt on the ability of the Group and of ECW to continue as going concerns. Our opinion is not modified in respect
of this matter.
EC World Asset Management Pte. Ltd., in its capacity as manager of EC World Real Estate
Investment Trust (?EC World REIT? and as manager of EC World REIT, the ?Manager?) wishes to
update that the refinancing exercise in respect of all of EC World REIT?s onshore and offshore term
loans due in 2019 is in the final stages of approval and documentation. The Manager is confident that
the refinancing exercise will be completed prior to the maturity dates of the term loans.
In accordance with Rule 704(5) of the Listing Manual of the Singapore Exchange Securities Trading
Limited, the Manager wishes to announce that as the outcome of the refinancing exercise is not
available as at the date of the Independent Auditors? Report, EC World REIT?s auditors,
PricewaterhouseCoopers LLP, have in their Independent Auditors? Report (?Independent Auditors?
Report?) on the financial statements of EC World REIT (the ?Financial Statements?) for the financial
year ended 31 December 2018 (?FY2018?), included an emphasis of matter in respect of material
uncertainty related to the ability of EC World REIT and its subsidiaries to refinance their existing
borrowings before they become due for repayment.
Investment Trust (?EC World REIT? and as manager of EC World REIT, the ?Manager?) wishes to
update that the refinancing exercise in respect of all of EC World REIT?s onshore and offshore term
loans due in 2019 is in the final stages of approval and documentation. The Manager is confident that
the refinancing exercise will be completed prior to the maturity dates of the term loans.
In accordance with Rule 704(5) of the Listing Manual of the Singapore Exchange Securities Trading
Limited, the Manager wishes to announce that as the outcome of the refinancing exercise is not
available as at the date of the Independent Auditors? Report, EC World REIT?s auditors,
PricewaterhouseCoopers LLP, have in their Independent Auditors? Report (?Independent Auditors?
Report?) on the financial statements of EC World REIT (the ?Financial Statements?) for the financial
year ended 31 December 2018 (?FY2018?), included an emphasis of matter in respect of material
uncertainty related to the ability of EC World REIT and its subsidiaries to refinance their existing
borrowings before they become due for repayment.
chengwh1 ( Date: 07-Apr-2019 08:33) Posted:
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Did you guys read in the Independant Auditors' Report from the latest Annual Report 2018 that mentioned there may be an issue with EC World REIT continuing as a going concern because her liabilites are more than her assets now ?
10% cut in electricity fees is great news!
laksaman57 ( Date: 04-Apr-2019 17:31) Posted:
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https://sg.news.yahoo.com/china-outlines-fresh-tax-cuts-lift-economy-035254484--finance.html
"For businesses, the government will lower average electricity fees by 10 percent ..."
"For businesses, the government will lower average electricity fees by 10 percent ..."
https://research.sginvestors.io/2019/02/ec-world-reit-dbs-group-research-2019-02-21.html?m=1
paul1688 ( Date: 22-Feb-2019 21:16) Posted:
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