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Starland says subsidiaries' frozen accounts make up a fifth of group's cash and bank balance
CATALIST-listed Chinese property developer Starland Holdings, in response to queries from the Singapore Exchange regarding its China bank accounts frozen by bankers, said on Monday that the frozen amount of 25.39 million yuan (S$5.02 million) is about a fifth of the group’s total cash and bank balance of 125.2 million yuan as at Dec 31, 2019.
The balances at end-December 2019 "do not materially differ" from the balance as at end-May 2020, it added.
Since then, the group has significantly reduced costs, both operational and manpower.
"Presently, we have only a skeletal team to manage the day-to-day operations in Fuling, Chongqing, PRC. The Group has sufficient funds in China to be able to settle any obligations or liabilities payable to our vendors and our employees in China. In addition, the group is towards the tail end of its two property projects in Fuling, Chongqing," it added.
The company also clarified that it has so far not received to any notification from regulators or the authorities regarding the suspension of the bank accounts, nor has it been asked to cooperate in any investigation.
It had said on Sunday that the bank accounts belong to its indirect wholly-owned subsidiaries, Chongqing Tianhu Land and Chongqing Gangyuan Property Development. It has commenced enquiries with the banks to determine the reason for their action, and if needed, will be appointing legal counsel to resolve the matter.