Note: This is a slight abridged and updated version of the article “DLF Holdings: Driving into the Unknown” posted on this website on February 27, 2020. It was updated to reflect the unaudited FY 2019 results announced by the company on February 29, 2020. This version was first published in the Business Times on March 3, 2020.

By Mak Yuen Teen and Chew Yi Hong

On Feb 19, 2020, Catalist-listed DLF Holdings announced that it was selling a BMW528iA car, with the number plate “SKN3333R”, to Abwin (1994) Pte Ltd, an unrelated third party buyer. The car’s certificate of entitlement, originally registered on Nov 29, 2013, has an expiry date of Nov 28, 2023.

The sale of the car for S$72,000, said to be the highest quote from three unrelated third-party prospective purchasers, was to improve cash flow. This small transaction requires disclosure because the car’s book value of S$114,322 exceeded 5 per cent of the group’s net asset value – in fact, it was 21.2 per cent.

DLF had listed only in July 2018. Having to sell a used car to improve cash flow so soon after its IPO raises a lot of questions and is symbolic of the state the company is in.

A desktop search found a car with the same make and model, and same registration date, listed by the dealer mentioned by the company. It was listed on Feb 19, the date the company announced the disposal.