Auditor firm BDO noted that the JES Group had liabilities that exceeded its RMB2.1bn ($388m) in current assets by RMB422.63m, indicating the “existence of material uncertainty that may cast significant doubt about the group's ability to continue as going concern.”
Singapore-listed JES incurred a net loss of RMB522.19m for the financial year ended 31 December 2013. The shipbuilder secured banking facilities amounting to RMB135m from various financial institutions to the financial year end, and obtained about RMB36m for placement of share to certain investors. JES is also in the process of securing an equity line facility from another investor of up to approximately RMB217m, according to BDO in a filing to the Singapore Exchange.
In response, JES said that while it is aware of its current financial position, the group has not encountered difficulties in continuing to utilise its existing banking facilities.
“The group does not foresee any sudden recall of such borrowings from its bankers. The company may also look to raise additional funds from other avenues in the debt and equity market,” JES said in a statement.
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