SINGAPORE (Apr 13): IPCO International, whose former management and board has been accused for misusing its placement proceeds, reported an 81.7% fall in 3Q earnings ended Jan to $975,000 from $5.33 million a year ago.
Total revenue rose 51.3% to $18.5 million from $12.2 million a year ago. ESA Electronics recorded higher sales of $3.9 million mainly due to higher demand for burn-in boards by semi-conductor manufacturers in the current quarter.
Sales from Excellent Empire, via its wholly owned subsidiary, China Environmental Energy Protection Investment, which in turn through its China subsidiaries supplies natural gas to households, commercial and industrial users in cities in Hubei, China, achieved higher sales of $11.2 million in 3Q FY18, mainly due to installation fees from new household consumers.
However, the group's total cost and expenses increased to $16.7 million in 3Q18 from $5.9 million in 3Q17.
In an announcement on Wednesday, IPCO's new board and management says instead using an approved 50% of the $1.58 million raised in its Sept placement as working capital, the previous board had used 84% between Sept 2017 and March for the purchase of equipment and development of land in its Falling Water Project in Seattle through a subsidiary called Capri Investments.
See: IPCO accuses former management for not using placement proceeds as approved
In its commentary of significant trends or any known factors or events that may affect the group in the next reporting period and the next 12 months, IPCO cited having to undertake road construction on its own to allow additional residential development beyond 592 lots.
The group says it may also have to build it own sewers and develop its own sewerage treatment solution for the next development phase which is subject to approval by the Washington Department of Health.
Shares in IPCO closed at 0.2 cent on Friday.
