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Sinopipe applies for extension of two months to hold AGM
Sinopipe Holdings Limited announced late last Friday that it has applied to the Singapore Exchange (SGX) for an extension of two months to hold its annual general meeting (AGM) for FY2017, from 30 April 2018 to 30 June 2018. It also applied to the Accounting and Corporate Regulatory Authority of Singapore (ACRA) for an extension of time to submit the consolidated financial statements of the group for FY2017.
The company said the extension was needed because the group has faced serious financial distress since the group's principal bankers in the Peoples' Republic of China (PRC) withdrew a substantial amount of banking facilities due to a credit crunch, which severely affected the group's operations and caused several subsidiaries in the PRC to close their respective production plants.
Going forward, it has decided to dispose of the loss-making and highly leveraged subsidiaries in the PRC and to look for new investors and new business to revive the company, said Sinopipe in a filing to the bourse.
As the group does not currently have sufficient financial resources to pay its audit fees for the financial year ended 31 December 2017 and AGM related fees and expenses, the company said it will only be able to pay after the completion of the disposal of shares and equity interest in the group's subsidiaries in the PRC.
Even though the disposal has been approved by shareholders of the group, it has been delayed due to the current financial status of the subsidiaries of the company in the PRC. The disposal is expected to be completed in April 2018, said Sinopipe.
Once the disposal is completed, the company will use part of the proceeds to pay for the AGM expenditure and to pay the audit fees to its auditor, Messrs Mazars LLP, before audit can commence.
The audit for FY2017 will require approximately five weeks from the date of commencement of the audit. Upon the issue of the completed audit report of the group, the company requires time to prepare and finalise the annual report for FY2017, print and distribute the annual report and comply with the necessary notice period, said Sinopipe.
Trading of the shares in the company has been suspended since April 2, 2012.