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Chairman's Statement
Extracted from Annual Report 2017

Dear Shareholders,

On behalf of the Board of Directors (the "Board") of Blumont Group Ltd. ("Blumont" or the "Company" and together with its subsidiaries, the "Group"), I am pleased to present to you the Group's annual report for the financial year ended 31 December 2017 ("FY2017").


Year 2017 has been a year Blumont experienced major ownership and management renewal. On 24 August 2017, Ultimate Horizon Pte. Ltd. ("Ultimate Horizon") acquired major shareholding of 22,011,537,185 of the Company's issued and paid-up ordinary shares and subsequently an additional 119,647,019 ordinary shares by way of an unconditional general offer, according to the Singapore code on Takeovers and Mergers, completed on 12 October 2017. After the completion of the general offer, Ultimate Horizon owned approximately 69.93% of Blumont. The ownership of Ultimate Horizon was subsequently increased to approximately to 80.27% after the reconsolidation of Blumont's share capital in January 2018, as further explained below.

For the rest of the shareholders who accompanied us relentlessly on this journey, we express our deepest gratitude to your unwavering support.

We are glad that Blumont has passed several milestones in 2017 amidst the changes.

We have successfully applied to the Singapore Exchange Securities Trading Limited ("SGX-ST") for our removal from the watch-list, after being put on the watch-list from 3 June 2016, due to 3 consecutive years of losses prior to the financial year ended 31 December 2016.


In December 2017, we also made an application to the High Court of the Republic of Singapore ("High Court") to rescind the 4,075,000,000 Award Shares ("Award Shares") under the Blumont Performance Share Plan, as the total number of Award Shares had exceeded the 15% limit prescribed under the rules of the Share Plan. The High Court subsequently granted the order to void the allotment and issuance of the Award Shares on 26 January 2018. We have since done the necessary rectification to our Company's records and statutory registers. Our efforts to reconsolidate our share capital will enhance our shareholders' value and re- instill confidence in our stakeholders.


I was appointed the Interim Chief Executive Officer on 5 September 2017 and subsequently re-designated as the Executive Chairman and Chief Executive Officer on 6 December 2017. The renewal of the management team was carried out concurrently with my redesignation. I believe that the renewed management team will bring the Company to greater heights.


We are currently in the midst of reviewing the Group's existing businesses. We plan to spinoff less profitable businesses and close down loss-making businesses. Meanwhile, we will focus on profitable businesses and examine how we are able to boost our profits further for such businesses. We are also in the midst of sourcing for new partners in existing / new industries.

We will embrace all challenges having set the right vision and we seek to rejuvenate the image of Blumont and pave a new path for the Group, with the right strategy.


In FY2017, the Company's major shareholder, Ultimate Horizon had extended a S$1 million shareholder's loan to Blumont and acted as a corporate guarantor for a $500,000 bank loan to Blumont. This support is crucial to the Group for their operations and cashflow, as well as for managing creditors.


Operationally, the Group reported a net loss of S$2,588,851 for FY2017.

The Group's revenue of S$3,697,557 mainly constituted the sterilisation business segment revenue of S$3,586,170 and property business segment revenue of S$111,387. Furthermore, the Group's other losses of S$711,187 for FY2017 was also contributed by loss on striking-off a dormant subsidiary during the year.

The above was offset by employee benefits of S$2,383,117, legal and professional fees of S$708,614 for a corporate exercise, depreciation expenses of S$541,109, rental and upkeep expenses of S$500,246, directors' fees of S$142,461, marketing and advertising expenses of S$110,881 and other miscellaneous operating expenses of S$739,274.

The cash and bank balances as at 31 December 2017 was S$929,704. The improved cash position was due to the bank loan and shareholder's loan secured in FY2017, offset by payment of operating expenses made during the year.

Net asset value per ordinary share to the owners of the Company as at 31 December 2017 was 0.01 cents (31 December 2016: 0.02 cents) based on issued share capital of 27,570,762,183 (31 December 2016: 27,525,762,183).


Our management team is currently assessing the Group's structure and we believe that these efforts will be reflected in the financials of the Group in the near future.


On behalf of the Board, I would like to extend my sincere thanks to every member of our Group. Our people are the foundation upon our future success.

Additionally, I wish to thank my fellow Board members and working partners for their valued input and support throughout the year.

Finally, on behalf of the Board, we are grateful to shareholders who have been with the Company through difficult times.

As we enter the new financial year ahead, we endeavor to work towards further enhancing shareholders' value going forward. We look forward to all stakeholders and shareholders' continual support and trust towards a better future for Blumont in the years to come.

Yours sincerely,

Executive Chairman and Chief Executive Officer