Third Quarter Financial Statement Announcement for the Period Ended 30 September 2018
Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.
Profit & Loss
- Included in Revenue is investment income of approximately $30,000 (2017 : $2,000)
- Included in Profit/(Loss) before tax is net profit on sale of properties of approximately $14,418,000 (2017 : $758,000) and net loss on disposal of property, plant and equipment of approximately $56,000 (2017 : $17,000).
- NM – Not Meaningful.
- NA – Not Applicable.
# Amount less than $1,000
Review of Performance
The Group posted a revenue of approximately $48.8 million for this quarter as compared to approximately $20.2 million in the previous corresponding quarter. The increase was mainly due to the recognition of revenue from sales of its residential units in Singapore and contribution from its hotel, YOTEL Singapore Orchard Road ("YOTEL"). YOTEL commenced operations only in the last quarter of 2017.
The increase in the Group’s other income of approximately $0.15 million was mainly due to compensation income from its properties.
With the recognition of sales revenue from its residential units, the Group recorded the amount of cost of sales for these units. In addition, the Group also derecognised in this quarter any accrued development costs no longer required for units sold in prior years.
The depreciation expense in this quarter was higher than the previous corresponding quarter arising from additions to property, plant and equipment.
The change in fair value of other investments was mainly due to valuation of its investments at fair value as at 30 September 2018.
The decrease in other expenses for this quarter as compared to the previous corresponding quarter was due to the pre-opening and other costs incurred for YOTEL in the third quarter of 2017.
The increase in finance income was mainly contributed from the income generated from its investment in equity-linked securities and deposits.
The Group posted a profit before tax of approximately $14.9 million as compared to a loss of approximately $4.7 million in the previous corresponding period.
The increase in tax expense in this quarter was mainly due to the provision of tax in this quarter as there is more taxable profit for the nine months ended 30 September 2018 as compared to the previous corresponding period.
The Group’s profit attributable to Owners of the Company was approximately $11.5 million as compared to a loss of approximately $3.8 million in the previous corresponding period.
The increase in the Group’s property, plant and equipment was mainly due to the purchase of furniture and fittings for the residential units of its investment property in Hong Kong that has completed its renovation in the first quarter of 2018.
The increase in the Group’s other assets was mainly due to its investment in unquoted equity securities.
The increase in the Group’s pledged bank deposits was mainly due to the monies collected from the rental of its investment properties in Hong Kong.
The increase in the Group’s other investments was mainly due to the purchase of equity and equity-linked securities.
The Group’s decrease in trade and other receivables was mainly due to the reclassification of transaction costs paid in December 2017, which was previously classified as prepayments, to loans and borrowings when the loan was drawn down in January 2018.
The Group has reclassified certain secured loans from current to non-current as these loans were refinanced in January 2018. The Group has reclassified its $120 million unsecured fixed rate notes due in the first quarter of 2019 from non-current in 2017 to current. The Group is confident that these notes can be refinanced or repaid from its available undrawn facilities by its due date. There was a net decrease in unsecured borrowings due to the repayment of its $100 million fixed rate notes in the first quarter of 2018.
The decrease in trade and other payables was mainly due to the payments of staff costs, accrued development costs and interest expense accrued as at 31 December 2017.
The increase in current tax liabilities was mainly due to the provision of tax for the nine months ended 30 September 2018 due to increase in taxable profit during the period.
Commentary On Current Year Prospects
The Group is expected to recognise revenue from the sales of its properties in the last quarter of 2018. The existing series of cooling measures on the property market will have an impact on the pace of our sales. However, the Group will continue to actively market the sales and leases of its properties.