3 years' losses, low market cap could land Debao on watch-list

DEBAO Property Development could end up on the Singapore Exchange's watch-list, after certain restatements meant it has now recorded pre-tax losses for the three most recently completed consecutive financial years.

Certain restatements were made to the financial results for the financial year ended Dec 31, 2017 by the company's auditors due to the adoption of the new Singapore Financial Reporting Standards during their audit of the company's financial statements for the following year.

That resulted in Debao recording a FY2017 loss instead of profit under the previously issued FY2017 audited results.

In addition, Debao's latest six-month average daily market capitalisation as at Nov 4 is about S$5.99 million, it said in a Tuesday filing.

As a result, the consecutive losses and Debao's market capitalisation may land it on the Singapore Exchange's watch-list.

SGX conducts half-yearly reviews to identify issuers to be included on the watch-list, on the first market day of June and December of each year. Debao said it will make an immediate announcement should it be notified by the Exchange that it would be placed on the watch-list.(see amendment note)

Amendment note: In its exchange filling, Debao had stated that SGX conducts quarterly reviews on the first market day of March, June, September and December of each year. It should be half yearly. The article has been revised to reflect this.