Deloitte & Touche (DT), GPB’s external auditor, has raised the red flag on the company’s ability to continue as a going concern, given current liabilities exceeded current assets by $35.56 mln. DT added the following:
- GPB is dependent on continuous support from their banks to meet their financial obligations;
- Its ability to continue as a going concern over the next 12 months depends on the availability of financial support from a major shareholder of the company. GPB’s largest and controlling shareholder is GP Industries with a 49.2% stake. GPI, which is also listed on the SGX, is 69.3% owned by HK-based Gold Peak Industries.
(Note GPB’s borrowings total $307.4 mln, matching Shareholders Equity at end Mar ’09.)

Things have not been going too well at the maker of batteries for some years now, caused by:
- Medical compensation to workers in factories in China;
- Surge in raw material costs (nickel, cobalt etc);
- Fluctuations in fair value of commodities contracts;
- Over supply in the lithium ion battery market;
- Ever intense competition in the industry;
- Financial problems of a Danish JV partner.

NTA (excluding intangible assets and goodwill) is $2.50 a share, putting stock on 0.34x price to book at Friday’s close of 84 cents, which is 80% its $4.26 high in 2003.