Response to SGX-ST Queries on the Emphasis of Matter in the Independent Auditors’ Report Announcement / 回應新加坡證券交易所暨獨立審計師報告中 的強調事項公告所提出之詢問
The Board of Directors (the “Board”) of Regal International Group Ltd. (“Company”, and together with its subsidiaries, “Group”) would like to respond to the queries raised by Singapore Exchange Securities Trading Limited (“SGX-ST”) on 24 June 2019 in relation to the Company’s announcement dated 21 June 2019 on emphasis of matter in the Independent Auditors’ Report in respect of material uncertainty related to going concern on the audited financial statements of the Company and its subsidiaries for the financial year ended 31 December 2018 (“FY2018”) as follows:
SGX-ST’s Queries
1) Please provide the Board’s opinion if the Company will be able to operate as going concern and basis for the Board’s view;
2) Please provide the Board’s opinion as to whether trading in shares of the Company should be suspended pursuant to Listing Rule 1303(3); and
3) Please provide the Board’s confirmation as to whether sufficient information has been disclosed to enable trading to continue in an orderly manner.
Company’s Responses
1) The Board is of the view that the Company will be able to operate as going concern for the following reasons:
a) the ability of the Group to generate sufficient cash flows from operations to pay debts as and when they fall due;
b) there are completed unsold development properties and properties development in progress, which the Group is able to pledge with financial institutions to obtain additional financing;
c) the ability of the Group to enter into contra arrangements with suppliers in exchange for services or goods, or for eventual sale to third parties;
d) the ability of the Group to negotiate with tax authorities and lenders of the Group in the obligations restructuring plan; and
e) the Director, who is the controlling shareholder, has agreed to provide continued financial support.
2) With reference to the above, the Board is of the opinion that the Group will be able to continue as a going concern, and therefore, trading in shares of the Company should not be suspended.
3) The Board confirms that all material disclosures have been provided for the trading of the Company’s shares to continue in an orderly manner.
Regal International Group Ltd.（簡稱“公司”，及其子公司統稱“集團”）的董事會（簡稱“董事會”) 謹此回應新加坡證券交易所（“SGX-ST”）於2019年6月24日就公司於2019年6月21日之公告，暨集團於2018年12月31日止財政年度（“FY2018”）經審核財務報表之獨立審計師報告中持續經營能力之重大不確定性涵括強調事項所提出之詢問，如下：
SGX-ST所提出之詢問
1) 請以公司持續經營之能力與董事會觀念基礎提供董事會之意見;
2) 根據上市規則第1303(3)條，請對是否應暫停公司股份交易提供董事會之意見; 及
3) 請就是否已為公司股份交易能夠有序地繼續進行而予以充分揭露提供董事會之確認。
公司之回應
1) 董事會認為，基於以下原因，公司將有持續經營之能力：
a) 集團有能力從業務中創造足夠的現金流量以支付到期的債務;
b) 集團能夠向金融機構質押已完工之未售不動產及在建開發不動產以獲取額外融資;
c) 集團與供應商訂立沖銷協議以換取服務或貨物、或銷售於第三方之能力;
d) 集團在債務重組計劃中與稅務機關和集團貸方進行談判之能力;和
e) 董事兼控股股東已同意提供持續性財務支援。
2) 參考上文所述，董事會認為集團有持續經營之能力，因此不應暫停公司股份交易。
3) 董事會確認已為公司股份交易能夠有序地繼續進行提供所有重大揭露。
Please click on the following links to download the full announcement(s):
请点击下列链接以下载完整的公告: