2011 Annual Report - the solid group inc website

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Notes:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
Incorporated and domiciled in the British Virgin Islands
Indirectly owned through SC
Pre-operating or non-operating
LIIP is 22.5% owned by SC and 37.5% owned by Interstar
Indirectly owned through SMC
Starworld is 20% owned by SMC and 40% owned by Skyworld
Indirectly owned through Precos
Indirectly owned through PNCI; incorporated and domiciled in the People’s Republic of China
(PRC)
(i) Incorporated in 2009 and started commercial operations in January 2010
(j) Acquired in 2010
(k) Merged as one company, with SMC as the surviving company, effective January 1, 2012
(l) Merged as one company, with SLC as the surviving company, effective January 1, 2012
SBC holds a provisional authority, granted by the National Telecommunications Commission,
to use its legislative franchise under Republic Act (RA) No. 9116, An Act Granting Solid
Broadband Corporation a Franchise to Construct, Install, Establish, Operate and Maintain
Telecommunications Systems throughout the Philippines.
SMFI is subject to the rules and regulations provided under RA 8556, The Financing Company
Act of 1998.
SGTC was incorporated to engage in the development and implementation of information
and communications technology systems and applications. On February 22, 2011, the Board
of Directors (BOD) and stockholders of SGTC approved the amendment of SGTC’s articles
of incorporation to change the Company’s primary purpose. This amendment was approved
by the SEC on March 22, 2011 and starting this date, SGTC’s primary purpose is to engage
in, operate, conduct and maintain business of designing, manufacturing, installing, importing,
exporting, marketing, distributing or otherwise dealing in at wholesale and retail prefabricated
modular house and office units.
1.2 Status of Operations and Mergers
(a)
Phasing-out of Manufacturing Business and Related Services of Certain Subsidiaries
On November 23, 2009, the Parent Company’s management disclosed to the public its
plan of phasing-out its unprofitable manufacturing business and related services, which
include the plastic injection molding parts operations of Kita and SLC, with the
expectation that this will positively impact the overall financial performance of the
Group. Kita and SLC have ceased their plastic injection manufacturing business as of
December 31, 2011 (see Note 5).
(b)
Mergers of Certain Subsidiaries
During the year, to attain efficiency in the operations and management of certain
entities, the respective BODs of SC and SMC; OLC and SLC; and Mytel and My Solid
approved respective entities’ plans of mergers of such subsidiaries whereby SMC, SLC
and My Solid will be the surviving entities, respectively. The mergers will become
effective upon the approval and issuance by the SEC of the Certificates of Filing of the
Articles and Plans of Merger (see Note 27).