The loss comes as the property developer witnessed poor revenue recognition at several projects as well as higher finance cost during the period under review.
SingHaiyi Group registered a net loss of $4.6 million for the second quarter ended 30 September, from a net profit of $7.7 million over the same period last year.
The loss comes as the property developer witnessed poor revenue recognition at several projects as well as higher finance cost during the period under review.
In Q2 of fiscal 2020, revenue fell 63.7% to $8.8 million, from $24.2 million a year ago. The lower revenue was mainly attributed to a drop in revenue recognition at Vietnam Town phase two and City Suites, reported Business Times.
In view of the decline in property development income, cost of sales fell by $11 million year-on-year.
Property development income dropped 68.7% to $6.9 million from $22 million previously. Rental income and management fee income both dipped by 6.4% to $1.5 million and $383,000, respectively in Q2.
Meanwhile, the property developer saw its finance cost for the quarter rose by more than seven times to $9.9 million from the previous year’s $1.3 million, mainly due to increased bank borrowings.
With this, loss per share (LPS) for the quarter stood at 0.109 Singapore cent versus the 0.179 cent earnings per share (EPS) last year.
For the half year ended 30 September, net loss stood at $12.8 million as revenue plunged 74.3% to $12.9 million.
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With property development income dropping 80.3% to $9 million, cost of sales also fell by $32.1 million from the previous year.
SingHaiyi also saw its rental income and management fee income decline by 13.9% and 3.3% to $3.1 million and $786,000, respectively.
With this, first half LPS stood at 0.302 Singapore cent versus the 0.208 cent EPS recorded over the same period last year.
Looking ahead, the group will remain “cautiously optimistic”, while focusing on driving sales as well as ensuring the smooth execution of its three recently launched properties within Singapore (The Gazania, The Lilium, and Parc Clematis).
Together with its property development projects in the US, SingHaiyi shared that it has a robust pipeline of projects that extend up to 2024, and which it expects to contribute to the group’s profitability.
“The group will continue to remain selective and prudently explore for fairly valued-land plots with good location and pursue suitable growth opportunities through yield-accretive acquisitions,” it said.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
