Hiap Seng Engineering suspends share trading amidst restructuring

It eyes scaling down its EPC projects.

Hiap Seng Engineering has requested to suspend trading of its shares after it announced that it will embark on a restructuring and realignment exercise as well as disposal of assets in Thailand and Singapore, filings in the Singapore Exchange (SGX) revealed.

“The company has engaged a financial consultant to undertake a financial position review and viability assessment of the group. However, at this stage, the board is unable to conclude if the group can operate as a going concern,” the firm said.

According to Hiap Seng Engineering’s financial results, its liabilities worth $32.2m have already exceeded its current assets by $30.1m. Part of the current liabilities comprised contract liabilities of $9.9m which are invoiced to customers but has yet to be recognised as revenue.

Apart from restructuring, the firm has also undergone various cost-cutting measures such as reduction of its headcount and streamlining of its operating processes. Hiap Seng will also focus on its plant construction and maintenance segment and scale down its engineering, procurement and construction (EPC) projects.

“The group continues to face a challenging operating environment with intense competition. The group has lost some new projects due to the fierce competition and its current financial position,” it said.

For April-June 2019, Hiap Seng Engineering’s losses narrowed by 62.3% YoY to $8.76m to $23.25m. Revenue grew 35.2% YoY to $36.20m from $26.77m.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Meanwhile, a record 583 non-landed homes sold for more than $2m each in the first nine months of the year.
The merger will create a flagship pan-Asia logistics and high-tech S-REIT.
It is followed closely by the identification app SingPass.
The index tracks REITs in the APAC region with higher dividend yields and positive environmental attributes.
Both companies will create training programs to support digital entrepreneurship and digital upskilling for Grab partners.
The deal is focused on M1’s network assets. 
This is a part of the Lion City's bid to become a global maritime knowledge and innovation hub.
Risks, however, are present with the financial troubles faced by the real estate sector in China. 
This comes as more Singaporeans turn to gaming in the midst of the pandemic. 
Retail sector has experienced the “most disruptions” with the changing restrictions.
The company was commended for being a global and regional sector leader in five categories.
The CEO designate said he aims to drive development in the company’s business units.   Gary Ho,  who played an instrumental role in the Initial Public Offering (IPO) of Nanofilm Technologies International Limited, has been appointed Chief Executive Officer of the company.
Analysts said strong leasing activity in Q3 played a factor.
Islandwide prime retail rents saw a dip by 0.6% q-o-q. 
Jardine Cycle & Carriage, Keppel Corporation and Frasers Logistics & Commercial showed the most growth.