Guocoland Limited reported a 25 per cent drop in net profit to $43 million in the second quarter ended Dec 31, due to a divestment gain by an associate in the comparative period.
Its revenue jumped 60 per cent to $370.6 million, thanks mainly to stronger sales and higher progressive revenue recognition from its Singapore residential projects.
During the quarter, its share of profit from associates and joint ventures fell to $9 million from $44.8 million a year ago as it recognised a one-time gain from the divestment of a land parcel in the year-ago quarter.
For the financial year's first half, GuocoLand's net profit more than doubled to $208.5 million from $82.8 million a year ago on the back of higher revenue and share of profit of associates and joint ventures.
The 69 per cent jump in revenue for the six-month period to $732.5 million was led by stronger performance of its residential projects in Singapore.
Contribution from Changfeng Residence, a joint-venture residential project in Shanghai that has been substantially sold and completed, was the main reason behind the surge in share of profit of associates and joint ventures to $179.5 million in the six-month period, up from $44.7 million in the year-ago period.
Giving an update on its projects in Singapore, GuocoLand said that its city-fringe condominium project Sims Urban Oasis has obtained its temporary occupation permit in October last year. The 1,024-unit project was about 94 per cent sold as at end-2017.
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AT A GLANCE
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REVENUE: $370.6 million (+60%)
NET PROFIT: $43 million (-25%)
Its luxury residential project Martin Modern in Martin Place, launched last July, sold 210 units out of a total of 450 units as at end-2017.
The group secured a commercial site in Beach Road last October for $1.622 billion in a 70-30 joint venture with its parent, Hong Kong-listed Guoco Group.
Both companies are controlled by Malaysian tycoon Quek Leng Chan.
Earnings per share for the quarter fell from 5.15 cents to 3.87 cents while for the half-year, earnings per share rose from 7.46 cents to 18.79 cents.
Net asset value per share rose from $3.18 as at June 30 to $3.30 as at Dec 31.
No dividend was declared.
The shares yesterday ended one cent lower at $2.25. The results were released after market closed.