The strong financial results was due mainly to good sales and higher revenue recognition from Singapore residential projects.
GuocoLand’s revenue surged by 60 percent year-on-year to $370.56 million in the second quarter ended 31 December 2017, due mainly to higher sales and contributions from its housing developments in Singapore, revealed an SGX filing on Thursday (1 February).
However, the developer’s net profit declined by 25 percent to $42.98 million on an annual basis as it recognised a one-time gain from the sale of a land parcel by an associate firm during the same period in 2016. As a result, its share of earnings from such companies, less tax, fell by 80 percent to $8.99 million.
For the six-month period ended 31 December 2017, revenue soared by 69 percent on an annual basis to $732.54 million thanks again to stronger demand for its local residential projects. Also, its share of earnings from joint ventures (JV) and associate firms more than tripled over the same period.
“Contribution from Changfeng Residence, a JV residential project in Shanghai which has been substantially sold and completed, was the main reason for the group’s share of profit of associates and joint ventures to increase by $134.86 million to $179.53 million in the current period. Consequently, profit attributable to equity holders increased by more than two-fold to $208.5 million” from $82.77 million previously, GuocoLand added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com