C O V E R S H E E T for SEC FORM 17-A SEC Registration Number 4 3 7 9 8 C O M P A N Y N A M E E T O N P R O P E R T I E S P H I L I P P I N E S , I N C . A N D S U B S I D I A R I E S PRINCIPAL OFFICE ( No. / Street / Barangay / City / Town / Province ) 8 t h F l o o r A l l i e d B a n k C e n t e r , 6 7 5 4 A y a l A A v e n u e , M a k a t i C i t y M e t r o M a n I l a , P h i l i p p i n e s Secondary License Type, If Form Type Department requiring the report Applicable 1 7 - A N A N A C O M P A N Y I N F O R M A T I O N Company’s Email Address Company’s Telephone Number Mobile Number [email protected] (632) 8548-4000 0917-1010358 No. of Stockholders Annual Meeting (Month / Day) Fiscal Year (Month / Day) 1,667 April 21 December/31 CONTACT PERSON INFORMATION The designated contact person MUST be an Officer of the Corporation Name of Contact Person Email Address Telephone Number/s Mobile Number Wilfredo M. Pielago [email protected] (632) 8548-4000 0917-1010358 CONTACT PERSON’s ADDRESS 8th Floor, Allied Bank Center, 6754 Ayala Avenue, Makati City NOTE 1 : In case of death, resignation or cessation of office of the officer designated as contact person, such incident shall be reported to the Commission within thirty (30) calendar days from the occurrence thereof with information and complete contact details of the new contact person designated. 2 : All Boxes must be properly and completely filled-up. Failure to do so shall cause the delay in updating the corporation’s records with the Commission and/or non-receipt of Notice of Deficiencies. Further, non-receipt of Notice of Deficiencies shall not excuse the corporation from liability for its deficiencies. SEC Number 43798 File Number ETON PROPERTIES PHILIPPINES, INC. (formerly BALABAC RESOURCES AND HOLDINGS CO. INC.) ____________________________________________________________ 8th Floor, Allied Bank Center, 6754 Ayala Avenue Makati City, Metro Manila, Philippines _____________________________________________________________ (Company’s Address) (632) 8548 - 4000 ______________________________________ (Telephone Number) December 31 ______________________________________ (Fiscal Year Ending) (month & day) Annual Report - SEC Form 17-A ______________________________________ Form Type December 31, 2020 ______________________________________ Period Ended Date TABLE OF CONTENTS Page No. PART I BUSINESS AND GENERAL INFORMATION Item 1 Business 1 Item 2 Properties 15 Item 3 Legal Proceedings 17 Item 4 Submission of Matters to a Vote of Security Holders 18 PART II OPERATIONAL AND FINANCIAL INFORMATION Item 5 Market for Issuer's Equity and Related Stockholders Matters 18 Item 6 Management’s Discussion and Analysis or Plan of Operations 20 Item 7 Financial Statements 31 Item 8 Changes in and Disagreements With Accountants on Accounting and Financial Disclosures 32 PART III CONTROL AND COMPENSATION INFORMATION Item 9 Directors and Executive Officers of the Registrant 32 Item 10 Executive Compensation 39 Item 11 Security Ownership of Certain Beneficial Owners and Management 41 Item 12 Certain Relationships and Related Transactions 42 PART IV Exhibits and Schedules Item 13 Corporate Governance Report 43 Item 14 Exhibits and Reports 44 Item 15 External Audit Fees 46 SIGNATURES EXHIBITS AND ANNEXES 48 SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-A, AS AMENDED ANNUAL REPORT PURSUANT TO SECTION 17 OF THE SECURITIES REGULATION CODE AND SECTION 141 OF THE CORPORATION CODE OF THE PHILIPPINES 1. For the fiscal year ended: December 31, 2020 2. SEC Identification Number: 43798 3. BIR Tax Identification No. 000-438-132-000 4. Exact name of issuer as specified in its charter: ETON PROPERTIES PHILIPPINES, INC. 5. Province, Country or other jurisdiction of incorporation or organization: Metro Manila, Philippines 6. Industry Classification Code: (SEC Use Only) 7. Address of principal office: 8th Floor Allied Bank Center, 6754 Ayala Avenue, Makati City, Metro Manila, Philippines 1200 8. Issuer's telephone number, including area code: (632) 8548-4000 9. Former name, former address, and former fiscal year, if changed since last report: Not Applicable 10. Securities registered pursuant to Sections 8 and 12 of the SRC, or Sec. 4 and 8 of the RSA: Number of Shares of Common Stock Title of Each Class Outstanding and Amount of Debt Outstanding Common Stock 5,723,017,872 shares 11. Are any or all of these securities listed on a Stock Exchange. Yes [ ] No [x] If yes, state the name of such stock exchange and the classes of securities listed therein: Not Applicable 12. Check whether the issuer: (a) has filed all reports required to be filed by Section 17 of the SRC and SRC Rule 17.1 thereunder or Section 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Sections 26 and 141 of The Corporation Code of the Philippines during the preceding twelve (12) months (or for such shorter period that the registrant was required to file such reports); Yes [ x ] No [ ] (b) has been subject to such filing requirements for the past ninety (90) days. Yes [x] No [ ] 13. The aggregate market value of the voting stock held by non-affiliates of the registrant; Not Applicable* *On December 2012, the Exchange approved the petition for voluntary delisting of the Company which took effect on January 2, 2013. ETON PROPERTIES PHILIPPINES, INC. 8th Floor Allied Bank Center, 6754 Ayala Avenue, Makati City Metro Manila, Philippines MANAGEMENT REPORT ITEM 1 - BUSINESS 1. Business Development Eton Properties Philippines, Inc. (formerly Balabac Resources and Holdings Co., Inc.) (hereinafter “Eton”, or the “Company”), has its registered business address at the 8th Floor, Allied Bank Center, 6754 Ayala Avenue, Makati City, Metro Manila, Philippines. It was originally incorporated and registered with the Philippine Securities and Exchange Commission (hereinafter the “Commission” or “SEC”) on April 2, 1971 under the name “Balabac Oil Exploration & Drilling Co., Inc.” to engage in oil exploration and mineral development projects in the Philippines. On May 12, 1988, the Company’s shares were approved for registration and licensing by the Commission. The Company’s shares were first listed with the Philippine Stock Exchange (hereinafter, the “Exchange”) in 1989. On August 19, 1996, the Company’s Articles of Incorporation (hereinafter, the “Articles”) was amended to change its primary purpose from oil exploration and mineral development to that of engaging in the business of a holding company and to include real estate development and oil exploration as among its secondary purposes. In 2007, the Company changed its corporate name to the present name being used, i.e. Eton Properties Philippines, Inc. In 2009, the Company acquired a 12-hectare property, more or less, owned by Paramount Landequities, Inc. (hereinafter, “Paramount”) where the Company’s Eton Centris project is located. Valued at P=3,953.17 million, the property was acquired in exchange for 1.6 billion new shares of the Company at a price of =P2.50 per share, making Paramount the controlling stockholder of the Company with a 55.07% stake. In the first quarter of 2011, the Company adjusted the value of the shares recorded in its books as well as the related real estate inventories and investment properties accounts to P=4billion to reflect the agreed exchange price for the acquisition of the property acquired from Paramount. In the years 2007 and 2008, the Company established Eton City, Inc. (hereinafter, “ECI”) and Belton Communities, Inc. (hereinafter, “BCI”), both wholly-owned subsidiaries. These companies were registered on October 8, 2008 and November 5, 2007, respectively. On October 15, 2010, another subsidiary, FirstHomes, Inc. (hereinafter, “FHI”), was formed as 100% owned by the Company. On September 29, 2011, the Company incorporated Eton Properties Management Corporation (hereinafter, “EPMC”), a real estate management company organized to manage, operate, lease, in whole or in part, real estate of all kinds, including buildings, house, apartments and other structures of the Company or of other persons provided that they shall not be engaged as property manager of a real estate investment trust. In 2012, the Company undertook the voluntary delisting of its shares with the Exchange. In compliance with the Tender Offer requirement under the Delisting Rules of the Exchange, - 2 - Paramount, the controlling stockholder of the Company, conducted a tender offer from November 7, 2012 until December 13, 2012 for Seventy Three Million Seven Hundred Ninety Eight Thousand Two Hundred Sixty Seven (73,798,267) common shares of the Company in the hands of the public and listed with the Exchange, constituting 2.54% of the total outstanding common shares of the Company. Upon expiration of the Tender Offer Period, a total of Fifty Two Million One Hundred Forty Four Thousand Nine Hundred Ninety Eight (52,144,998) common shares of the Company were tendered out of the Seventy Three Million Seven Hundred Ninety Eight Thousand Two Hundred Sixty Seven (73,798,267) common shares subject of the Tender Offer. On December 12, 2012, the Exchange approved the petition for voluntary delisting of the Company to take effect on January 2, 2013. As of December 31, 2012, the Company, through Paramount, became a subsidiary of LT Group, Inc. (hereinafter, “LTGI”), a publicly listed company incorporated and domiciled in the Philippines. LTGI’s parent company is Tangent Holdings, Inc., a company incorporated and domiciled in the Philippines. On January 23, 2015, the Commission approved the request of the Company for confirmation of the valuation for the issuance of Two Billion Sixty Seven Million Six Hundred Sixty Nine Thousand One Hundred Seventy Two (2,067,669,172) common shares from the unissued portion of its authorized capital stock at Two Pesos and Sixty Six Centavos (=P2.66) per share for a total of Five Billion Four Hundred Ninety Nine Million Nine Hundred Ninety Nine Thousand Nine Hundred Ninety Seven Pesos (P=5,499,999,997).