Financial Highlights:1

A Brown Company, Inc. (“ABCI” or “the Company”) is engaged in the business of real estate development primarily in Mindanao region. The following consists the Company’s real property development projects:2

The lots, and house & lots sold for each project are reflected as follows:2

ABCI has 11 real estate projects, three of which were recently launched namely: Adelaida Park Residences on October 2016, Mountain View Homes Phase 2 on November 2016, and Mountain View Homes Phase 1 on February 2015. The lots only and house & lots sold by the Company sold from 2014 to 2016 were growing with 215, 349, and 403 sold for 2014, 2015, and 2016 respectively. The Company’s sold lots and house & lots during the first three (3) quarters of 2017 has a total of 293.

Through its subsidiaries, ABCI ventured into oil palm nursery and seedlings distribution, palm oil milling, hotels operation, real estate brokerage, power generation, and investment in gold mining assets.3 The Company has nine (9) wholly-owned subsidiaries as reflected in the corporate structure below:4

ABERDI manufactures and trades crude oil and petroleum products on wholesale and retail basis.5 Its operating performance for year 2016 decreased from previous year’s net income of P2 million to a net loss of P33 million. This is due to a low production in 2016 caused by low supply of Fresh Fruit Bunches (FFB) due to El Nino. The sales mix of ABERDI is reflected below:6

PTCHC is the holding company for 20% ownership in PCPC (formerly DMCI Concepcion Power Corporation) incurred a net loss amounting to P1.26 million and P0.56 million for the year 2016 and 2015, respectively. Increase in net loss was due to the tax effect of deferred income tax benefit and the booking of financial income from non-interest bearing loan which were recognized last year.7

BCL was acquired by ABCI on May 22, 2017 and has a 33.33% ownership in East-West Railway Project, an integrated light rail mass transportation system intended to increase the transport systems in Metro Manila and other major urban cities. The Project is under evaluation by National Economic Authority and Public-Private Partnership (PPP) Center.8

BRN Stockholders as of December 31, 2016:9

BRN’s Directors and Executive Officers are listed below:10

Family Relationship11

ABCI, to achieve its plans for development, considers the inherent risks that may affect the Company. Extreme weather disturbances like El Nino and strong typhoons are the biggest roadblock in the agriculture sector. To address this, the Company plans to reduce the cost of rice to reduce poverty and raise productivity by helping farmers transition to higher value crops and make technology easily accessible to them.12

Business Development Plans13

Real Property Development14                                                                                                                                                         ABCI intends to develop socialized and economic housing in Cagayan de Oro City, Butuan City, and in Tanay, Rizal to address the rise in demand of housing requirements for middle income, starter families, and single market. ABCI will also erect a commercial building in the strip of Xavier Estates to have a recurring rental income.

Palm Oil Business                                                                                                                                                                             The growing demand of palm oil in terms of production and trade is an opportunity for ABERDI in expanding its current crude oil capacity of 10 tons per hour to 30 tons per hour.

Coal-Fired Power Project                                                                                                                                                                  PCPC is the project proponent of the coal-fired power plant project in Concepcion, with its first unit is PCPC’s base load plant addressed the power supply requirements of the Visayas grid and currently provides a steady flow of power in Panay, Negros, and the rest of Visayas when it started its operations on August 2016. For the second unit, all the requirements for the Environment Compliance Certificate has been completed and awaiting approval from DENR.

Bunker-Fired Power Project                                                                                                                                                              PEI implements projects designed to generate power across electric cooperatives in Mindanao. PBI’s third plant which is embedded in Bukidnon Second Electric Cooperative is nearing its completion and is expected to be on commercial operations before the end of 2017.

Bulk Water Project                                                                                                                                                                             ABWCI pursues the Bulk Water Supply Project to cater the present and future requirements of the Opol municipality and its neighboring locations. The Water Permit has already been granted by the National Water Resources Board (NWRB), Certificate secured from DENR, and other requirements are already approved except for the Project Evaluation by the local government.

East West Railway Project                                                                                                                                                                BCL partially has an ownership in East-West Railway Project Consortium that proposes build, operate, and maintain the Railway to aid the transportation in Metro Manila. The Project is under evaluation by the National Economic Authority and PPP.

References:

1  PSE Edge, BRN Company Disclosures, SEC 17-1 (2015 & 2016) and Sec 17-2 (1st-3rd Qs of 2017), https://goo.gl/PvUwqG

2  ­BRN SEC 17-2, September 30, 2017, Real Property Development, p.11-12, https://goo.gl/K3RFc3

3  ­BRN SEC 17-1, 2016 Annual Report, Business of Issuer, p.20, https://goo.gl/GhgzSs                 

4  ­BRN SEC 17-2, September 30, 2017, A Brown Company, Inc. and Subsidiaries, Group Chart, p.104, https://goo.gl/K3RFc3

5  ­BRN SEC 17-2, September 30, 2017, Notes to Financial Statements, p.36, https://goo.gl/K3RFc3                

6  ­BRN SEC 17-1, 2016 Annual Report, Business, p.10-11, https://goo.gl/GhgzSs                

7  ­BRN SEC 17-1, 2016 Annual Report, Business, p.15, https://goo.gl/GhgzSs                                                                          

8  ­BRN SEC 17-2, September 30, 2017, Outlook for the Year and Onwards, p.24, https://goo.gl/K3RFc3                

9  ­BRN SEC 17-1, 2016 Annual Report, Exhibit III, p.83, https://goo.gl/GhgzSs                                                                                        

10  BRN SEC 17-1, 2016 Annual Report, Management and Certain Security Holders, pp.63-67, https://goo.gl/GhgzSs

11  BRN SEC 17-1, 2016 Annual Report, Management and Certain Security Holders, p.68, https://goo.gl/GhgzSs                 

12  ­BRN SEC 17-2, September 30, 2017, Impact of Economic/Political Uncertainties, p.25, https://goo.gl/GhgzSs                 

13  BRN SEC 17-2, September 30, 2017, Outlook for the Year and Onwards, p.18-24, https://goo.gl/K3RFc3                

14  BRN SEC 17-1, 2016 Annual Report, p.56, https://goo.gl/GhgzSs

Pin It on Pinterest

Share This