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KOP posts Q2 loss; enters into loan agreement with Sam Goi

PROPERTY group KOP sank into the red with a loss of S$2.91 million for the second quarter ended Sept 30 from a net profit of S$369,000 a year ago.

The bottom line was weighed down by higher cost of sales and administrative expenses.

Revenue grew 48 per cent to S$5.29 million while loss per share worked out to 0.55 cent from earnings per share of 0.6 cent a year ago.

For the six-month period, net loss was S$4.91 million, from a net profit of S$5.31 million a year ago. Revenue increased 39 per cent to S$8.62 million.

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In a separate announcement, KOP [9]said it has entered into a loan agreement with businessman Sam Goi for a S$45 million loan, which is convertible into ordinary shares if the loan is not repaid. The conversion price will be the lower of either the volume weighted average price of the company's shares on the five market days before the conversion option notice is given, or S$0.09.

The loan comes with an interest rate of 7 per cent per year, payable in three-monthly intervals.

Mr Goi is a controlling shareholder of the company and, as at Nov 9, holds a 20 per cent stake in the company.

KOP said that it will use the loan to fund the capital requirements of its 30 per cent stake in joint venture company Snow Star Properties Co for the development of projects in Shanghai.