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JES International Holdings will ask the Singapore Exchange (SGX) for an additional month to report its 2014 results and to hold its annual general meeting because of issues related to its Chinese subsidiaries.
JES, a China-based shipbuilding and engineering company, said it appointed an independent valuer to assess its Chinese subsidiaries' fixed assets at the request of its auditor. But the valuer recently informed the company that it will need another two to three weeks before the valuation report can be ready.
Because those subsidiaries contribute almost all of the company's fixed assets, the company's existing balance sheet statement "may not be a true and fair representation of the company's financials" as at Dec 31, 2014, JES said.
As at Sept 30, 2014, JES reported net assets of 1.2 billion yuan (S$261 million). It had reported 1.5 billion yuan of property, plant and equipment.
JES said it also plans to restructure the company's assets and liabilities by means of a scheme of arrangement between the company's Chinese subsidiaries and certain creditors or judicial managers.
The restructuring plan is due to be announced shortly, and "the company is of the view that the release of FY2014 results (which would not take into account the restructuring) will not be a true and fair representation of the company's current financials and may create a false market between the period of time the FY2014 results are released and the release of announcement in relation to the restructuring", the company stated.
JES said it will ask SGX to give it until March 31 to report its 2014 results, and until May 30 to convene its annual general meeting.
JES shares closed at 2.6 Singapore cents on Friday before trading was halted for the announcement.