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Boustead Projects
09-09-2018, 07:26 PM.
Post: #221
RE: Boustead Projects
From my observation, it is rather curious that change of structure model can have impact on contracts amount reported.
Not saying which is more correct but it is just what it is.

Previously when BP took DB&L projects on their own, they did not (and shouldn't) report the construction order won.
But when they changed it to have BDP taking the DB&L projects instead, they can report the construction order won.
I am aware that nothing is wrong accounting wise.
But something has to be quite wrong.
It can't be both are right.
Either previous model under-report the construction order or current model over-report.

My accounting skill is not good enough to determine whether there is an increase in bottom line.
(or if the construction profit is totally offset with the JV losses).
Top line wise, definitely there is an substantial increase (so as the contracts order amount).

For bottom line, it could be that the future earning is brought forward to reflect reality.
My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".

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28-09-2018, 10:08 PM.
Post: #222
RE: Boustead Projects
Boustead Projects today made two announcements:- >> Incorporation of a JV Company in Singapore and, >> Acceptance of Tender by JTC for Braddell Road site.

So just to recap:-

July 16, 2018 - BPL incorporated a JV company in Vietnam known as EFactory Vietnam Company Limited in which they will have a 50% stake, capital injected is USD 170,000 (BPL portion). This is for real estate consultancy and management services.

August 27, 2018 - BPL's Malaysian wholly-owned subsidiary BP Lands Sdn Bhd has incorporated a wholly-owned subsidiary called BP Batu Kawan Sdn Bhd for MYR 2.0. Principal activities for property development for sale and lease and the provision of construction related activities.

September 3, 2018 - BPL incorporates a 51%-owned JV in Singapore known as BP-BBD2 Pte Ltd with initial paid-up capital of SGD 100. Principal activities are that of property development for long-term lease.

September 28, 2018 - BPL has incorporated a 50%-JV company called Snakepit-BP1 Pte Ltd with paid-up capital of SGD 2. BPL also registered an LLP called Snakepit-BP LLP with paid-up capital of SGD 100. Activities is that of property development for long-term lease.

September 28, 2018 - BPL has been awarded a tender by JTC for a 30-year lease industrial property at Braddell Road. Site area is 9,716.2 sqm, zoned Business 1 with a plot ratio of 2.5. BPL-SH1 (wholly-owned subsidiary) was the entity awarded the tender; they paid SGD 53,588,888.88 (lucky number?) for the site. >> JTC's official announcement can be found in this link.

As can be seen above, in the last 3-4 months alone BPL has been busy incorporating companies and JV in Vietnam, Malaysia and also Singapore and today won the tender for an industrial site worth $53.6m. Interesting developments indeed and we may just hear news of more D&B and also DB&L contracts soon?  Big Grin
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