Singapore, 23 April 2018 – Singapore Technologies Engineering Ltd (ST Engineering) updated today that Jiangsu Huatong Kinetics Co., Ltd and Jiangsu Huaran Kinetics Co., Ltd (collectively JHK or the company) have filed a bankruptcy petition to the People’s Court of Dantu District in Zhenjiang, Jiangsu. This follows the Group’s announcement on 14 December 2016 when JHK was placed under members’ voluntary liquidation.
JHK is the joint venture between ST Engineering’s land systems arm, Singapore Technologies Kinetics Ltd (ST Kinetics) and China’s state-owned enterprise Jiangsu Huatong Machinery Co., Ltd.
The shareholders of JHK have agreed on this course of action to avoid further cash outlay by the company, as JHK was not able to dispose of its assets (land and buildings) despite its best efforts for more than a year to secure buyers due to the weak demand for industrial properties in the Zhenjiang area.
Prior to this, the company had resolved relevant staff matters, including welfare and compensation settlement. ST Engineering has fully written down its investments in this JV business having recorded the $61m one-off charge for the third quarter ended 30 September 2016, consisting of an impairment of ST Kinetics’ net carrying value in JHK and closure costs including staff compensation.
The bankruptcy petition is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
ST Kinetics (Singapore Technologies Kinetics Ltd) is the land systems arm of ST Engineering, an integrated engineering group. With 50 years of engineering expertise behind us, we are driven by a passion for innovation and work with partners and customers to deliver customised land systems and security solutions that meet the stringent operational requirements of defence, homeland security and commercial customers. Headquartered in Singapore, ST Kinetics employs a skilled workforce of some 5,000 people, 70% of whom are in engineering and technical roles, to support customers in over 40 countries. We are the world leader in niche products such as 40mm munitions. In FY2017, ST Kinetics recorded revenue of S$1.24b. Please visit www.stengg.com for more information.
ST Engineering (Singapore Technologies Engineering Ltd) is a global technology, defence and engineering group specialising in the aerospace, electronics, land systems and marine sectors. The Group employs about 22,000 people across offices in Asia, the Americas, Europe and the Middle East, serving customers in more than 100 countries. Its employees bring innovation and technology together to create smart engineering solutions for customers in the defence, government and commercial segments. Headquartered in Singapore, ST Engineering reported revenue of S$6.62b in FY2017 and it ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, MSCI Singapore and the SGX Sustainability Leaders Index. Please visit www.stengg.com for more information.
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