GuocoLand's Q2 net profit rises 3% to $12.9 million

GuocoLand has eked out a 3 per cent rise in second quarter net profit to $12.9 million.

Revenue for the three months to Dec 31 was 8 per cent higher at $254.3 million.

Cost of sales increased by 16 per cent.

The rise in revenue and cost of sales were mainly due to higher progressive recognition for the group's Singapore residential projects and profit recognition for the handed over units of Seasons Park in Tianjin, China.

Other income increased from $3.2 million to $14.2 million, mainly due to foreign exchange gain of $13.9 million recorded for the current quarter.

However, this was partially offset by the fair value loss on foreign exchange hedges.

Included in other income was also a buyer's deposit of $2.5 million for the purchase of

Shanghai Guoson Centre's service apartments.

The deposit was forfeited as the sale and purchase agreement was terminated during the quarter.

Earnings per share slipped to 0.94 cent from 1.13 cents previously while net asset value per share grew to $2.26 compared to $2.20 as at June 30.