The chief financial officer of Mainboard-listed engineering company Tee International has resigned less than a year after his appointment in November 2020.
Ng Kok Peng’s departure follows the resignation of its former group chief executive Phua Boon Kin, uncle of Phua Cher Chuan, interim group executive and managing director, in June. Executive director Saw Chin Choo resigned that same day.
Last week, Tee International announced a loss after tax of $115.1 million in 4QFY2021 ended May as compared to $18.4 million in the same period a year earlier.
See: Tee International to raise $3.8 million via private placement of 129 mil new shares
Overall, the company reported a loss after tax of $119.2 million in FY2021 as compared to $64.6 million in FY2020.
“Revenue decreased by $54.3 million mainly due to substantial completion of a major project and slowdown of project progression due to Covid-19. Cost of sales increased by $9.1 million, which is mainly attributable to cost overruns resulting in foreseeable losses for certain on-going projects of the Group flowing from the current challenging business environment,” said the company.
It added that its engineering and construction business has been adversely affected by the pandemic, while projects have been negatively impacted due to labour shortages, accelerated project timelines, stringent safe management measures and supply chain disruptions, resulting in higher costs to complete the projects.
The results were announced after the Singapore Exchange (SGX) rejected an application from Tee International for an extension of time to announce its year-end results. The company had requested an extension of two months to report its FY2021 and 1QFY2022 results.
SGX did, however, grant the company an additional month to hold its AGM. With the one-month extension, the company now has to convene its AGM by Oct 31, 2021.
The company appointed RSM Corporate Advisory as a financial consultant in June to undertake a review of the businesses and assist in restructuring plans.
In May, the company announced a private placement of 129 million new ordinary shares in the company at 3 cents per share, amounting to a total of $3.9 million in proceeds.
The issue price represents a discount of approximately 3.7% from the weighted average price of the company’s shares of 3.12 cents as of May 14.
See also: Tee International reverses from previous year's losses, reports $468,000 earnings in 1QFY21
The company intends to use the entire net proceeds from the placement, some $3.8 million, for working capital purposes.
A month prior, Tee International reported a net loss of $6.4 million for its 3QFY2021 ended February, deepening from a $4.1 million loss in the same period a year earlier. Its share price had reached a 52-week high of 5.4 cents on April 7, a week before the release of its third quarter results.
Tee International was incorporated in Singapore on Aug 15, 2000 and listed on SGX on March 12, 2001.
The principal activities of the company are in M&E services, comprising electrical engineering, mechanical engineering and fire prevention and protection system services, which it applies in the infrastructure, rebuilding and new building sectors of the M&E construction industry.
Shares in Tee International closed flat at 3.2 cents.
