SINGAPORE - King Wan Corporation recorded a net loss of $9.7 million in the fourth quarter, compared with a $2.05 million net profit a year earlier.
This was mainly due to a $12 million impairment allowance on loans to the group's associate, Dalian Shicheng Property Development. The allowance was made in view of the continuing depressed real estate market in Dalian, China, where the associate and its subsidiary operates, it said.
Revenue for the quarter rose 15 per cent to $23.8 million due to higher recognition of revenue from mechanical and electrical contracts during the quarter.
For the full year to March 31, net profit was $17.1 million, a 154 per cent year on year increase.
This included the one-time net gain from the completion of divestment of the two associates in Thailand during the year, and the impairment allowance made on loans due from an associate, the company noted.
If such one-time net gains and losses were excluded, the net profit for the year would be $4.95 million.
Earnings per share for the year was 4.89 cents, up from 1.93 cents previously.
Net asset value was 28.11 cents at March 31, up from 24.75 a year earlier.
A final dividend of one cent per share was declared, down from 1.5 cents a year earlier.