Property company SingHaiyi Group has reported a 47.1 per cent drop in fourth-quarter earnings to $8.4 million.

The decline was despite a 63.8 per cent rise in revenue to $8.1 million for the three months to March 31.

The increase was mainly due to contributions from the group's Pasir Ris One project, a more fanciful type of public housing, and sales of completed units from Vietnam Town, a project in the United States.

Other income produced a loss of $2.2 million against a gain of $18.1 million previously.

Gross profit margins fell by 14.4 percentage points due to the change in revenue mix as more sales from property development with a lower profit margin were recognised. Gross profit margin of rental income remained stable.

The share of profits from associates shot up to $29.7 million, compared to a loss of $450,000 in the same period last year.

On the flip side, other operating expenses ballooned to $10.7 million, arising from the fair value loss on investment properties of some $6.4 million and allowance for a fall in value of a development project, City Suites, of $3.9 million.

Fourth-quarter earnings per share eased to 0.292 cent from 0.552 cent previously while net asset value per share climbed by 0.65 cent to 16.15 cents.

Net profit for the full year rose 38.4 per cent to $29.3 million on revenue of $269.1 million.

SingHaiyi said the results were underpinned mainly by higher property development income in Singapore.

Correspondingly, revenue contribution from Singapore soared to $251 million for the full year compared with $1.4 million last year.

In the US, the group's real estate portfolio generated revenue of $18.1 million, comprising the sale of several completed residential units in Vietnam Town in San Jose, California, and rental income, which was relatively stable year on year from Tri-County Mall, in Cincinnati, Ohio.

This compared with revenue of $19.4 million last year.

Pretax profit surged 78.7 per cent to $41.5 million, which was buoyed by strong share of profits of equity-accounted associates, mainly due to profit contribution from the completion of CityLife@Tampines executive condominium (EC) project in the financial fourth quarter, as well as fair value gain from investment in investment fund, ARA Harmony Fund III, in which the group has a 25 per cent interest.

This was partially offset by higher expenses relating to marketing activities for The Vales (a recently launched EC), allowance made for diminution in the value of City Suites and fair value loss on investment properties.

The company has proposed a final dividend of 0.2 cent a share. It did not pay a final dividend last year.

SingHaiyi shares yesterday ended 0.3 cent or 2.5 per cent higher at 12.1 cents.