Aspial Corporation’s net profit soared by more than five-fold to $7.51 million in 9M 2017 compared to $1.38 million in the same period a year ago, revealed an SGX filing on Wednesday (8 November).
However, the jewellery seller and property developer’s revenue declined by 19 percent from $440.85 million to $354.95 million over the same period, while the contribution from its real estate business slumped by 42 percent from S$235.9 million to $136.7 million.
“The revenue for 9M 2017 was mainly contributed by the progress recognition of sales from CityGate and final recognition of sales from Waterfront@Faber as compared to 9M 2016 where there were higher revenue contributions from The Hillford, Waterfront@Faber, Urban Vista and CityGate.”
“Although the group has made good progress in the sales and construction of its overseas projects, unlike in Singapore, it cannot progressively recognise such revenue until the projects are completed and the units delivered to purchasers.”
For Q3 2017, the company’s revenue fell 33.7 percent to $109.4 million from $164.99 million, while net earnings slumped by 99 percent from $12.72 million to $70,000.
Nevertheless, Aspial Corp’s total assets by value increased by about 13 percent to $1.94 billion in the quarter ended 30 September versus $1.72 billion as of 31 December 2016.
“The increase was mainly due to the increase in development properties, cash and bank balances, investment securities, trade and other receivables, property, plant and equipment, properties held for sale, investment in joint ventures and investment properties, partially offset by decrease in inventories, amount due from associates and investment in associates.”
It added that the rise in development properties was mainly attributable to ongoing overseas real estate projects, but was partially offset by a reclassification of such assets to trade receivables as the group had obtained Temporary Occupation Permit (TOP) for Waterfront@Faber in Q2 2017.
This article was edited by Keshia Faculin.
