Developer Ho Bee Land suffered a 14.1 per cent year-on-year slide in second-quarter net profit, driven by a plunge in revenue, it said yesterday .
Net profit fell to $36.1 million for the three months ended June 30, as turnover slumped by 78.4 per cent to $37.4 million.
The decline came mainly from higher sales recognition of two residential projects in Australia last year, said the group.
But it added that its bottom line got a hefty boost from China operations.
Its share of profits from associates rose by 61 per cent to $12.2 million, thanks to a residential project in Shanghai, while its share of profits from jointly controlled entities jumped almost sixfold to $3.2 million from a project in the north-eastern Chinese city of Tangshan.
Earnings per share for the quarter was 5.42 cents, against 6.31 cents for the same period last year, while net asset value was $4.45 a share, compared with $4.39 a share as at Dec 31 last year.
For the half year, net profit swelled by 52.8 per cent to $92.4 million despite a 62 per cent drop in revenue to $79.8 million.
AT A GLANCE
REVENUE: $37.4 million (-78.4 per cent)
NET PROFIT: $36.1 million (-14.1 per cent)
Chairman and chief executive Chua Thian Poh pointed to the group's recent acquisition of a commercial property in London as a positive addition to its recurring income base.
In June, Ho Bee's wholly owned subsidiary Stream Field Investments paid £129.3 million (S$229.9 million) to buy out a British Virgin Islands-registered firm that owned a freehold office building in the City.
The Lombard Street property's annual rental income was reportedly around £5.3 million.
"With the strong recurring income and the expected development profits from its residential projects in Australia and China, the group will remain profitable for the rest of the year," Mr Chua added.
Ho Bee shares fell by one cent or 0.4 per cent to close at $2.41 shortly after results were announced.