Ipco International releases profit loss warning

Hurt by Financial Assets value decline.

In announncement to the Singapore Exchange, the Board of Directors of Ipco International Ltd announced that the company, together with its subsidiaries, is expected to report a loss and asset impairment for the half year ended 31 October 2013.

This is primarily attributable to declines in value of Financial Assets, of which the most significant is the Group's holding of 9.74% of the issued share capital of Blumont Group Ltd (Blumont), it added.

On 7 October 2010, Asia Plan Ltd, in which the Group holds a 70% equity interest and which is engaged in real estate development near Seattle in the state of Washington, USA via its wholly-owned subsidiary Capri Investment L.L.C. (Capri), entered into a Conditional Sale and Purchase Agreement (S&P) with Blumont Group Ltd, a company whose shares are listed and quoted on the Main Board of the SGX-ST, and Blumont's subsidiary company, Phelago Holdings Pte Ltd, to sell 37 finished lots held by Capri for an aggregate purchase consideration of S$2.96 million.

Upon completion of the transaction on 28 September 2011, the group received 137,956,868 shares of Blumont (70% of the total of 197,081,240 shares issued to Capri) at a price of S$0.015 per share. At the time this represented 10.93% of Blumont's issued share capital, in addition to the 26 million shares previously held by the Group.

The company said though that revenue and profits from its operating subsidiary Excellent Empire Ltd, which distributes natural gas in four cities in Hubei Province, PRC, have continued to show improvements.

The Group is in the process of finalizing its unaudited Half Year Financial Results for FY2014, which will be released on or before 15 December 2013 and will contain further details.

In the meantime the Board of Directors wishes to advise shareholders and potential investors to exercise caution when dealing in the shares of the Company.