Singapore eDevelopment issues profit warning for FY2014

CATALIST-LISTED Singapore eDevelopment, formerly known as CCM Group, on Monday said it expects to report a loss in its unaudited financial results for the financial year ended Dec 31, 2014 (FY2014).

The expected loss was mainly due to losses incurred by its legacy construction business (prior to the disposal of CCM Industrial in May 2014), losses and provisions made arising from claims against corporate indemnities previously issued to its legacy construction business, as well as a non-cash fair value adjustment of embedded financial derivative arising from the issuance of exchangeable notes, said the company.

It is expected to release its unaudited FY2014 results during the week beginning Feb 23.

Separately, the company on Monday announced the termination of the non-binding memorandum of understanding (MOU) - dated Aug 12, 2014 - with Chan Heng Fai and Jacky Zhuang in relation to the proposed acquisition of their entire equity interest in CloudTel.

The termination will allow the company to focus on its IT-related business and the development and commercialisation of the HotApp mobile application, said Singapore eDevelopment. It expects to launch its flagship HotApp mobile application within the first quarter of 2015.

Last August, Singapore eDevelopment had paid about S$98,000 for HotApps International - a software developer which owns applications for instant messaging, social media and e-commerce platforms - from Mr Chan, the company's chief executive officer who owns HotApps.

Meanwhile, HotApps International on Monday is said to have incorporated HotApp Guangzhou Technology - which will be engaged in the sale and marketing of the HotApp mobile application in China, and the provision of mobile application development, network and other infrastructural services required globally for the HotApp mobile application - and HotApps Call, which will be engaged in the provision of marketing and distribution of value cards relating to the HotApp mobile application.