Singapore, 14 December 2016 - Singapore Technologies Engineering Ltd (ST Engineering) announced today that further to its announcement on 18 October 2016, Jiangsu Huatong Kinetics Co., Ltd and Jiangsu Huaran Kinetics Co., Ltd (collectively JHK), have been placed under members’ voluntary liquidation. JHK is the joint venture between its Land Systems arm, Singapore Technologies Kinetics Ltd (ST Kinetics) and China’s state-owned enterprise Jiangsu Huatong Machinery (JHM).
JHK, of which ST Kinetics owns 75.3% and JHM owns the balance 24.7%, is in the road construction equipment business in China.
ST Engineering recorded a $61m one-off charge under the Land Systems sector in 3Q2016. This charge consists of an impairment of ST Kinetics’ net carrying value in JHK and closure costs including staff compensation. As previously announced, had this one-off charge of $61m occurred in the financial year ended 31 December 2015, it would have had the effect of reducing ST Engineering's 2015 earnings per share of 17.05 cents by 1.97 cents, representing a 11.6% reduction, but no material impact on ST Engineering's last audited consolidated net tangible assets per share as at 31 December 2015.
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 FY2015, ST Kinetics recorded revenue of S$1.4b. Please visit www.stengg.com for more information.
ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenue of $6.34b in FY2015 and 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. ST Engineering has about 23,000 employees worldwide, and over 100 subsidiaries and associated companies in 46 cities across 24 countries. Please visit www.stengg.com for more information.
Head, Corporate Communications, ST Engineering
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AVP, Corporate Communications,ST Engineering
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