SINGAPORE (Nov 2): HL Global Enterprises posts a 45.2% decline in earnings to $276,000 in the 3Q ended September, from $504,000 a year ago.
Revenue fell 15.3% to $3.1 million for 3Q17, from $3.7 million a year ago.
This was partially due to lower occupancy at Elite Residences Shanghai, which was affected by shorter tenancy leases introduced pending the completion of a proposed disposal.
In addition, there was a decrease in revenue at Copthorne Hotel Cameron Highlands (CHCH) due to keen competition arising from an increase in the supply of hotel rooms and serviced apartments in the vicinity.
Correspondingly, the group’s operating profit in the hospitality segment fell to $0.8 million in 3Q17, from $1.1 million a year ago.
As at end September, cash and cash equivalents stood at $24.6 million.
Looking ahead, HL Global notes that it will continue to be exposed to currency fluctuation risks as its assets are substantially located in China and Malaysia.
However, the group says it will continue its efforts to source for sustainable and viable businesses.
HL Global has been placed on the SGX Watch-List since June 4, 2014. After successful applications for extensions, the group now has until June 3, 2018 to meet the Financial Exit Criteria for removal from the Watch-List.
Shares of HL Global closed flat at 48.5 cents on Thursday.
