Hyflux

Hyflux Ltd (Hyflux) is a global sustainable solutions company listed on the Singapore Stock Exchange (SGX), and employs over 2,500 staff in Asia Pacific, the Middle East, Africa and the Americas. [1]

Hyflux Logo

It maintains more than 10 research laboratories in Singapore, including a knowledge centre, an "innovative process development centre", a materials and membrane products development centre as well as advanced machining, prototyping and industrial design functions.

The company was founded in 1989 by Ms Olivia Lum, Group CEO, President and Managing Director.

In 2006, the company was given the 'Water Company of the Year' award, at the 'Global Water Awards', by the Global Water Intelligence, UK.

The company was placed under judicial management (JM) on 19 November 2020 by the Singapore Courts due to excessive debts. Control of the company's operation has been transferred to the appointed judicial managers Hamish Alexander Christie and Patrick Bance of Borrelli Walsh.[2]

History

The company started initially as Hydrochem (S) Pte Ltd, in 1989 with a start-up capital of S$20,000 and three staff, selling water treatment systems. It was the first water treatment specialist to be listed on the Singapore Stock Exchange in January 2001.

In 2004, Hyflux launched its membrane and materials technology centre - the largest in Asia, outside Japan, to spearhead its development in membrane technology and environmental engineering.

In 2007, Hyflux marked another first in the Singapore Stock Exchange by listing the Hyflux Water Trust (HWT) on the mainboard in December. It is Hyflux's primary financial platform for investing in water infrastructure assets in high growth markets globally.

Over the last eight years, profits and sales have fallen by a compounded average annual growth rate of -30 per cent. In 2008, the group had net profits of S$59 million.[3] In 2016, the group had net profits of S$3.8 million.[4]

On 21 May 2018, the company, which can be rightly considered insolvent, suspended its shares and applied for court supervision to reorganise liabilities and businesses the next day. The company's earnings had been hit from "prolonged weakness" in the local power market due to the Tuaspring project, the first integrated water and power project in Asia, making losses in 2017 and first quarter of 2018, as an oversupply of gas in the Singapore market caused depressed electricity prices. [5]

On 19 October 2018, conglomerate Salim Group and energy giant Medco Group agreed to offer Hyflux a S$400 million equity injection, in exchange for a 60 per cent stake in the company once it has settled all its debts. The sale of a controlling stake in Hyflux to foreign entities will need waivers from national water agency PUB and other authorities.[6]

Under the company's restructuring proposal, a holder of Hyflux's perpetual securities and preference shares will recover S$106.54 for every S$1,000 invested, Channel NewsAsia reported on Feb 16, 2019.[7]

The Securities Investors Association Singapore (SIAS) will hold an “independent” town hall session on Feb 25 for retail investors of Hyflux’s perpetual securities and preferences shares to voice their concerns.[8]

Notable projects

Hyflux has completed projects in Singapore, China, Southeast Asia, the Middle East, and Algeria. Some of which includes:

  • SingSpring Seawater Desalination Plant, Singapore
  • Seawater Desalination Plant, Tianjin City, China
  • Seawater Desalination Plant, Magtaa, Algeria
  • Seawater Desalination Plant, Tlemcen, Algeria

References
  1. "Hyflux Corporate Fact Sheet" (PDF). June 1, 2016.
  2. hermesauto (2020-11-16). "Hyflux put under judicial management; founder Olivia Lum loses control over firm". The Straits Times. Retrieved 2020-12-11.
  3. "Hyflux Still Expanding" (PDF). Asia Pacific Biotech News. November 3, 2009.
  4. "Hyflux News Release" (PDF). Feb 27, 2018.
  5. "Hyflux applies for court supervision to reorganise liabilities, businesses". Channel NewsAsia. Retrieved 2018-05-23.
  6. Lee, Marissa (October 19, 2018). "Indonesian white knights put S$530m Hyflux rescue plan on table". The Business Times.
  7. "Hyflux's retail investors face losses under proposed restructuring plan". Channel NewsAsia. Retrieved 2019-02-21.
  8. "SIAS to hold investor-only town hall session on Feb 25 for Hyflux perpetual, preference shareholders". Channel NewsAsia. Retrieved 2019-02-21.
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