Company Briefs: Creative Technology

Creative Technology

Creative Technology recorded a net loss attributable to equity holders of US$2.8 million (S$3.9 million) for the fourth quarter ended June 30, compared with a net profit of US$25.6 million in the year-ago period, it said in a results release after market close yesterday.

For the current quarter, Creative said it is "targeting an improvement in revenue from the current level", but expects to report an operating loss.

Revenue for the fourth quarter fell 9 per cent to US$12.8 million from US$14.1 million in the year-ago period. Gross profit margin was 29 per cent in the fourth quarter and full year, compared with 28 per cent the previous year.

However, there was an absence of other gains of US$30.7 million recorded in the year-ago period, due mainly to US$32.6 million gains from litigation settlements.

Loss per share for the quarter was US$0.04, compared with earnings per share of US$0.36 in the year-ago period.

Creative recorded a full-year net loss of US$3.8 million, compared with a net profit of US$40.4 million the year before. Full-year revenue was down 17 per cent at US$54.9 million.

Keppel Land China

Keppel Corporation unit Keppel Land China is entering a joint venture (JV) to acquire and develop a 3.8ha commercial and residential mixed-use development site in Nanjing, China, with an estimated total development cost in excess of 5 billion yuan (S$990 million), Keppel Corp said yesterday.

Keppel Land China unit Shanghai Ming Bu Industrial Co (SMBI) has entered a share-purchase agreement with Yincheng International Holding Co to acquire a 25 per cent stake in JV company Nanjing Zhijun Property Development Co for 250 million yuan.

The remaining 75 per cent stake in the JV company will be held by Yincheng and co-investor Jiangsu Aidi Property Development Co.

After completing the 25 per cent stake acquisition, SMBI will advance a shareholders' loan of 464 million yuan to Nanjing Zhijun for the acquisition and development of the site. The site is expected to be acquired by Nanjing Zhijun by the year end.

The site has a gross floor area of 99,248 sq m and can yield about 211 residential units, 342 commercial units and 79 shop units, said Keppel. Phase 1 is expected to be launched in the second quarter next year and the entire project is slated for completion in 2024.

A version of this article appeared in the print edition of The Straits Times on August 22, 2019, with the headline 'Company Briefs'. Print Edition | Subscribe