Hatten Land (formerly: VGO Corporation)

[cyclone]

Hatten Land Unveils Plans for RM200 Million (USD49.2 Million) Water Theme Park, Melaka’s Largest, In Collaboration With Samsung C&T and Polin Waterparks

Highlights :
* Collaboration agreement for 500,000-sq ft Splash World @ Harbour City signed in presence of Melaka Chief Minister, YAB Tuan Adly Bin Zahari
* Slated to open in the first half of 2020, the project will catalyse growth of tourism in the historical city and help open up economic and job opportunities
* The waterpark will be the first ‘in the sky’ theme park and can accommodate up to 5,200 visitors
* Nestled between two 30-storey towers on the 14th floor deck of Harbour City @ Melaka
* Splash World @ Harbour City hopes to attract 850,000 to 1.0 million visitors annually after the first year of operation.

Samsung C&T’s resort group is the owner and operator of South Korea’s popular Everland Resort, which hosts 8 million visitors per year. Everland Resort consists of the Everland theme park, which integrates attractions, shows, zoos, and gardens, as well as the Caribbean Bay waterpark, which features world class facilities and services. It is a leading global operator and service provider for resorts, as well as golf courses, food supply and landscaping.

Polin Waterparks is a multi-award-winning global leader in the design, production, engineering and installation of waterparks and water slides that incorporate efficient smart design features. With a track record of 3,000 waterpark projects in 105 countries, it is the largest water slide supplier to waterparks in Eurasia.

More details in http://infopub.sgx.com/FileOpen/2018.08....eID=520349

[weijian]

These guys just did a RTO 2 years ago into Catalist board. Now it wants to go onto the Mainboard - without the scrutiny of a IPO due diligence process or even last 3 years of financial reports! How convenient!

INTENTION TO TRANSFER LISTING FROM THE CATALIST BOARD OF THE SINGAPORE EXCHANGE SECURITIES TRADING LIMITED TO THE MAINBOARD REGIME

The board of directors (the “Board” or the “Directors”) of Hatten Land Limited (the “Company”, and together with its subsidiaries, the “Group”) refers to the Company’s announcement dated 30 January 2019 regarding the Company’s intention to undertake the Proposed Transfer. The Board wishes to announce that SGX-ST is unable to allow the Proposed Transfer at this point. SGX-ST is of the view that the Company’s application for the Proposed Transfer is premature. The Company is not precluded from re-submitting an application for the Proposed Transfer to SGX-ST at a later date, after the release of its audited financial statements for the financial year ending 30 June 2019.

https://links.sgx.com/FileOpen/2019%2005...eID=558335

[weijian]

Recently, Hatten Land, a master developer of prime plots in downturn Melaka, announced it would be paying a 6mil USD stake for a 20% stake in a digital technology firm. The payment would be satisfied fully in newly issued shares. The firm was incorporated 2 years ago and burnt 40% of its paid-up capital after 1 year, and yes this lobang was introduced by a long time friend of the Chairman, and this friend happens to own it.

I have been to Melaka not longer than 2 years ago as a tourist. I am not sure if many of the individual vendors (trishaws, night market stalls or the various tourist-themed shops) would be nudged to move to "digital" and be part of the "ecosystem". Finally, some of the existing epayment schemes in Malaysia like GrabPay, Touch N Go and Boost have big backers and already have first mover advantage.

I am not sure what kind of digitization can happen there in the short to mid term, to be honest. Of course, I am not a Dato and can't visualize so far! But it is quite clear that Hatten Land is facing strong short term headwinds due to covid-19 with the property downturn as a double whammy. I do have my suspect as to what will eventually happen (not appropriate on a public forum) and probably will continue to observe to see what pans out.

RESPONSE TO SGX QUERIES

Query 1: How was the purchase consideration arrived at? Hatten is paying US$6 million for a 20% stake in ECXX, whose paid up capital is only US$5.8 million. ECXX was incorporated in October 2018, as at 31 August 2019, its net asset value is US$2.4 million and loss of US$1.2 million.

https://links.sgx.com/FileOpen/2020%2007...eID=625562

[brattzz]

i like melaka...Hatten's projects, apartments..hotels... doesn't look occupied, we stayed in the little BnB hotels, rather than big names..... anyway, it's just another way of onboarding the "digital wagon"... :O :O :O

[weijian]

So after selling out their Harbor City development (If you go to Melaka before the MCO, you would have seen their sales booths all over the place in Hatten hotel and also the major shopping malls), Hatten land would after all have money to repay their convertible bonds that were due at the start of the year.

PROPOSED DIVESTMENT OF SUBSIDIARY, GOLD MART SDN BHD

As the concept originator and project developer of Harbour City, Hatten Land will assign various intellectual property such as project design and concept, domain names, internet site and marketing materials (“Intellectual Property”) to Tayrona Capital for a consideration of US$60 million.

https://links.sgx.com/FileOpen/2020%2008...eID=627159

[¯|_(ツ)_/¯]

FY profit warning

As disclosed previously, the operating performance of the Company and its subsidiaries (the “Group”) in FY2020 has been impacted by the COVID-19 pandemic. Following a preliminary assessment of the Company’s unaudited financial results for FY2020 and taking into account the impairment losses on assets owned by the Group and adoption of new accounting standard in FY2020, the Board of Directors of the Company wishes to issue a profit guidance that the Company expects to report a material accounting loss for the fourth quarter ended 30 June 2020 and FY2020.
https://links.sgx.com/FileOpen/BP_Announ...eID=628989

Stay home and stay healthy, everyone.

[¯|_(ツ)_/¯]

4QFY2020 Result as at 30 Jun 2020
Rev RM-32m (vs +134m)
Gross Loss RM14m (vs +146m)
Net Loss RM201m (vs (+20m)

FY2020 Result
Rev RM109m (vs RM338m)
Gross Profit RM38m (vs 200m)
Net Loss RM230m (vs +11m)

The acquisition of 20% interest in ECXX Global Pte. Ltd has been completed on 18 August 2020 
ECXX has obtained approval from the Monetary Authority of Singapore (“MAS”) for admission to the Fintech Sandbox Express under a Recognised Market Operator (RMO) regime. With the approval from the MAS, ECXX targets to launch a blockchain based securities exchange platform, ecxx.co, that offer various asset-based digital securities, such as real estate, private equity, venture capital and investment funds to institutional and accredited non-individual investors. 
https://links.sgx.com/FileOpen/FY2020%20...eID=629845

Stay home and stay safe, everyone

[¯|_(ツ)_/¯]

Rental payment by shares
Due to the current challenging business environment, the Company has implemented various measures to preserve cash and bolster its balance sheet. The Proposed Transaction is aligned with this initiative to preserve cash by capitalizing the Upcoming Rental.  
https://links.sgx.com/FileOpen/2020%2008...eID=630064

Stay home and stay healthy, everyone.

[¯|_(ツ)_/¯]

Response to SGX queries

Background
Hatten subsidiary Genonefive Pte Ltd signed a 12 years lease agreement back in Nov 2013.
Yesterday, Hatten announced a supplemental agreement which issue 60,372,875 new shares at an issue price of $0.0575 as upfront payment for remaining lease expiring on 15 June 2025 (end of 12 years).
The new share price is issued at a premium of 6.28% to the volume weighted average price as at 31 Aug 2020.
 
Since this is upfront payment, there will not be revision of rental rates in future depending on the market conditions.

Rental Rate(psf)   Year
$4.87              prior to Oct 2018
$5.11              Oct 2018 - Jul 2020
$6.33              Aug 2020 - Sep 2021
$6.65              Oct 2021 - Jun 2025

If there are changes to company office space needs to the extend that the company has extra office space, the company is allowed to sub-lease the extra space to other parties.

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

Termination of OTP - parcel of land in Melbourne, Australia A$15.8m
Vendor shall reimburse the Company for A$300,000 for the costs incurred in the application of the Revised Planning Permit.
https://links.sgx.com/FileOpen/2020%2009...eID=632215

Stay safe and stay healthy, everyone.