Kimly says daily operations not affected by arrests of chairman, executive director
SINGAPORE (Dec 18): Coffeeshop chain Kimly says Tuesday that the group’s daily operation have not been affected by “recent events” involving executive chairman Lim Hee Liat and executive director Chia Cher Khiang.
The two men were arrested by the Commercial Affairs Department on Dec 4 and are being investigated for a suspected offence under Section 199 of the Securities and Futures Act.
Authorities so far have not filed any formal charges against them.
See: Kimly chairman Lim and executive director Chia arrested, out on bail
CAD and the Monetary Authority of Singapore (MAS) had earlier requested Kimly to furnish documents and equipment related to its IPO, as well as the acquisition of drinks company Asian Story Corporation (ASC).
Kimly on Nov 29 announced the cancellation of the acquisition of ASC, which was completed only in July this year. It is said to have terminated its agreement due to Pokka ending its manufacturing agreement with ASC.
See: Kimly cut to 'neutral' by RHB on failure to launch F&B dreams
Of the $16 million cash already paid to the vendor, former Pokka marketing executive Wang Chia Ye, $12 million has been returned to Kimly. The remaining $4 million is to be repaid by Wang over three years.
In a corporate and business update filed to SGX before market open on Tuesday, Kimly says the management has undertaken a strategic business review post the release of its FY18 results on Nov 29, and has identified several initiatives “to further drive growth, improve operating efficiency and enhance value for shareholders”.
These include convening a workgroup to study the formulation and packaging of Kimly’s own brand of iced coffee and tea for sale at its drink stalls. The group says it targets to launch this brand of beverages by March 2019, which it expects to provide further growth in its drinks revenue.
Additionally, Kimly says it intends to roll out a rewards programme for customers across all its outlets to promote repeat patronage.
Plans are also underway to build the online business of Rive Gauche, which began with the launch of a newly revamped website in October 2018. The group acquired the confectionery business in July this year, and currently owns and operates 10 Rive Gauche outlets.
Shares in Kimly closed at 24 cents on Monday, some 37% lower than its 52-week peak of 38 cents in January this year.
