Developer GuocoLand says the group reported a net profit of $12.4 million for the first quarter ended Sept 30, 2009 compared to a net loss of $2.8 million in the previous corresponding period. Gross profit was $31.7 million primarily contributed by property development projects in China.
The group’s revenue fell 37% to $95.7 million from $153.1 million respectively compared to the previous corresponding period.
The decrease was largely due to lower contribution from property development projects in Singapore as several projects were fully sold and completed during the previous financial year.
During the quarter ended Sept 30, 2009, the group launched Sophia Residence and Elliot at the East Coast. The group says the launches were well received and to date, the group achieved sales of 86% and 64% in Sophia Residence and Elliot at the East Coast respectively.
There was no profit contribution from these two developments in this quarter as construction has not started. Contribution to the group’s revenue and cost of sales was however higher for property development projects in China as higher sales were recorded in Ascot Park in Nanjing and Changfeng project in Shanghai.
Other income of $10.6 million for the first quarter ended Sept 30, 2009 included a net foreign exchange gain of $7.5 million comprising unrealised translation gain on USD borrowings by the group. In the previous corresponding period, the group recognised a net foreign exchange loss of $19.2 million, which was classified as other expenses in the income statement.
Finance costs increased by 38% to $9.8 million mainly due to an increase in loans and borrowings and the non-capitalisation of interest after completion of development properties.
Income tax expenses increased from $2.2 million to $7.6 million mainly due to higher profit contribution from the projects in China.
Source : The Edge – 16 Oct 2009
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