Company Briefs: PropNex


Real estate agency PropNex saw its bottom line shrink in its fiscal second quarter, as it took in lower commission income while bearing higher staff costs and depreciation expenses.

Revenue for the three months ended June 30 fell 24 per cent to $92.1 million from $121.6 million the year before.

PropNex said this was due mainly to the decrease in commission income from agency services and project marketing services. Commission income from agency services fell as the year-ago period saw much en bloc activity before cooling measures took effect, contributing to strong resale activities.

Commission income from project marketing services decreased because a significant number of option-to-purchase projects were not completed by the end of the quarter. Expenses such as staff costs and depreciation of plant and equipment increased.

PropNex's net profit attributable to shareholders fell 12 per cent to $3.7 million from $4.2 million. Earnings per share came in at one cent, compared to 1.36 cents the year before. The company has declared a dividend of 1.25 cents per share for the period.

Sunpower Group

Environmental solutions company Sunpower Group has completed the acquisition of a 90 per cent equity interest in Changshu Suyan Thermal Power for 293 million yuan (S$58 million).

The majority stake was purchased from Jiangsu Geqiu Environmental Technology and another 11 shareholders, the mainboard-listed firm said in a regulatory filing yesterday.

Independent valuer Jiangsu Huaxin Asset Evaluation, which was engaged by the group, had valued the 90 per cent stake at 347.3 million yuan, representing a 15.6 per cent discount to the deal amount.

Sunpower claims that Suyan Thermal Power's sales revenue has grown steadily in the past three years, supported by the textile and garment industries in Changshu, Suzhou.

In addition, demand is expected to increase significantly for Suyan Thermal Power by 2020 due to the mandatory closure of small dirty boilers and the relocation of additional customers, the company said.

Suyan Thermal Power is the exclusive steam supplier within its coverage area which includes the Yushan high-tech zone. It meets the bulk of steam requirements by the industrial facilities and supplies steam to 49 customers, mainly in the printing and dyeing industries.

A version of this article appeared in the print edition of The Straits Times on August 14, 2019, with the headline 'Company Briefs'. Print Edition | Subscribe