Internet Technology Group

(22-02-2013, 12:41 PM)lonewolf Wrote: The announcement was vague. It did not specifically mentioned a gross operating loss. So maybe all these legal tussles in Spore and China resulted in higher administration cost and resulted into a net loss?

Singapore one is on-going battle, should has no major impact IMO

Base on last announcement on China dispute, it should not has impact on earning.

So it is something else that bring it to net loss.

Internet Technology Group has announced its FY 2012 results.

Results here

Gross Profit: 8.869 million (down 14.1%)
Net Profit: -1.268 million (down 122%)
Due mainly to increase in distribution and selling expenses and administrative expenses; both directly expenses in subsidiary China JiangXi Singapore Property Development.

Quote: Distribution and selling expenses increased from S$0.10 million to S$1.58 million in the current financial year was mainly due to Sales & Marketing Department of subsidiary in China JiangXi Singapore Property Development Co. Ltd. ("JXSPD") was newly set up in the current financial year and the costs incurred were mainly for advertisements and promotions.

The increase in administrative expenses was mainly due to development works of JXSPD was fully kick-off in the current financial year. As compared to prior year, the development works only carried out in last 2 months of FY2011.

No dividend declared but the company has paid off all its debt and is now debt free.

(01-03-2013, 07:56 PM)lonewolf Wrote: Internet Technology Group has announced its FY 2012 results.

Results here

Gross Profit: 8.869 million (down 14.1%)
Net Profit: -1.268 million (down 122%)
Due mainly to increase in distribution and selling expenses and administrative expenses; both directly expenses in subsidiary China JiangXi Singapore Property Development.

Quote: Distribution and selling expenses increased from S$0.10 million to S$1.58 million in the current financial year was mainly due to Sales & Marketing Department of subsidiary in China JiangXi Singapore Property Development Co. Ltd. ("JXSPD") was newly set up in the current financial year and the costs incurred were mainly for advertisements and promotions.

The increase in administrative expenses was mainly due to development works of JXSPD was fully kick-off in the current financial year. As compared to prior year, the development works only carried out in last 2 months of FY2011.

No dividend declared but the company has paid off all its debt and is now debt free.

Good summary.

Yet to get into the detail, but seems favorable signs to me

After review the company FY2012 report, here are the comments

- After several rounds of disposals, the only non-property business left is Directory Publication service. Segment revenue maintains at around $11 mil, but segment profit reduces to $3 mil, it is consistence with the decline of directory service market.
- The new core business is China's property development. It reaches the next milestone of development, pre-sale stage. So far development cost incurred is approx S$24 mils, almost double 6 months ago.
- The pre-sale proceeds collected are used to fund the remaining development expenses, and repaid the debt. The company is debt-free up to FY2012
- The cash increase from $17 mil to $28 mil, mainly contributed from un-earned revenue of $37 mil.

In short, the property development is progressing well so far, reaches the pre-sale stage, but still not close to completion yet. Further development expenses is well-funded by pre-sale proceeds and internal resources.

(vested)

Update On Arbitration By Subsidiary, Jiangxi Singapore Property Development Co., Ltd Against Jiangsu Province First Construction Installation Co., Ltd

http://info.sgx.com/webcoranncatth.nsf/V...D003435E7/$file/Announcement_Update_On_ArbitrationProceedings.pdf?openelement

Looks damn messy to me. They signed a master contract comprising 5 phase and now Phase 1 has been terminated. So they have to negotiate to terminate the master contract. In the end, it looks like they may even have to pay compensation to Jiangsu First Construction. Am I wrong in my reading?

Whatever the case, it means further delay to the project and more cost and ultimately less profit.

(13-03-2013, 09:10 PM)lonewolf Wrote: Looks damn messy to me. They signed a master contract comprising 5 phase and now Phase 1 has been terminated. So they have to negotiate to terminate the master contract. In the end, it looks like they may even have to pay compensation to Jiangsu First Construction. Am I wrong in my reading?

Whatever the case, it means further delay to the project and more cost and ultimately less profit.

Yes, it is messy. The main concern is the likelihood of delaying the project.

Well, by taking it positively, now we know there are 5 phases started Sept 2011, phase I with 3 building blocks, which are already in pre-sale stage. The phase I contract is legally terminated, and the dispute now is on master contract.

The company pre-sale launched at the right timing

Nanchang, a 2nd tier city in China, what is the reasonable selling price per sqm? I assume the Phase I is for residential. Base on my best knowledge, in a 2nd tier city in China, suburban residential project, the average selling price is ~15K RMB per sqm.

With the selling price of 15K RMB per sqm, Phase I pre-sale is estimated as 40%-50% sold, which is done within 3 months in FY2012. Hmm...

Remaining S$35-40 mil sale proceeds will be collected...Hmm

Busy working out the risk-reward ratio... and the margin of safety...

New home prices up in most Chinese cities, posing policy challenge

BEIJING — China’s new home prices posted the broadest advance in more than a year, a test for new Premier Li Keqiang as he seeks to prevent a property bubble without putting a damper on economic growth.

Prices climbed in 62 cities of the 70 the government tracked in February from the same month a year earlier, the largest number since December 2011, reported the National Bureau of Statistics (NBS) yesterday.

http://www.todayonline.com/business/new-...-challenge

Update on amendment of last final year report. The adjustment is upward, rather than downward.

EPS remain the same, while NAV increases from 14.91 cents to 17.06 cents. It is an accounting adjustment, which has no real impact on financial health of the company.

http://info.sgx.com/webcoranncatth.nsf/V...800385BFC/$file/Revised_Announcement_On_FullYearResults_FY2012.pdf?openelement

The Goh brothers acquired more shares from open market again, on 10th Apr 2013. Almost all the volume transacted was took-up by 3 of them. I tried to pick-up, but too late...

http://info.sgx.com/webcoranncatth.nsf/V...9004B5DF1/$file/FORM1_JoeGoh.pdf?openelement

http://info.sgx.com/webcoranncatth.nsf/V...900479949/$file/FORM1_GeorgeGoh.pdf?openelement

http://info.sgx.com/webcoranncatth.nsf/V...90048E504/$file/FORM1_StevenGoh.pdf?openelement