Yongnam files notice of 3 straight years of losses; to hold AGM on June 29

STEELMAKER Yongnam Holdings on Monday gave notice that it recorded pre-tax losses for the three most recently completed consecutive financial years.

This is based on its audited full-year consolidated accounts, said the mainboard-listed firm before the market opened.

As at April 9, 2020, its six-month daily average market cap stands at about S$73.2 million.

Under the Singapore Exchange's listing rules, mainboard-listed companies will be placed on the watch list under the financial-entry criteria if they record pre-tax losses for the three most recently completed consecutive financial years and also fail to maintain an average daily market cap of at least S$40 million over the last six months.

Yongnam posted a net loss of S$53.1 million for the year ended Dec 31, 2019, widening from a net loss of S$51 million a year earlier. The higher loss came amid an impairment charge on a trade receivable, operational restructuring costs and loss on disposal of strutting assets.

In a separate filing on Monday, the company said it will convene its annual general meeting at 10am on June 29.

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This comes after the Accounting and Corporate Regulatory Authority (ACRA) and the Singapore Exchange Regulation (SGX RegCo) on April 7 announced that it will give firms a 60-day time extension to hold AGMs and file their annual returns.

Asked if the company will be implementing safe-distancing rules, or whether there might be a virtual component to its AGM, Yongnam told The Business Times on Monday: "Ensuring the safety of our AGM attendees and shareholders amid the ongoing Covid-19 outbreak is important to us. As such, Yongnam will fully comply with the latest safety guidelines outlined by SGX RegCo and other relevant regulatory authorities."

The company added that it will revise its protocols in accordance with the latest guidelines, as soon as they are announced.

"We are still exploring our options and will update shareholders as soon as the details are finalised," it said.

As at 4.33pm on Monday, the counter was trading flat at 8.8 Singapore cents.