SINGAPORE (Feb 26): HL Global Enterprises saw its earnings soar to $86.2 million for the FY17 ended December, compared to a net loss of $0.2 million a year ago.
This was due to one-off gains of $48.3 million on the disposal of a wholly-owned subsidiary, LKN Investment International, and $38.5 million on the disposal of investment in a joint venture, namely LKNII’s 60% equity interest in Copthorne Hotel Qingdao Co.
Full-year revenue fell 15.2% to $11.7 million in FY7, from $13.8 million a year ago.
The decrease was partly due to lower revenue recorded by Elite Residences Shanghai, which was owned by LKNII, as a consequence of the LKNII disposal.
Revenue from Copthorne Hotel Cameron Highlands (CHCH) also declined due to the increased supply of hotel rooms and serviced apartments in the vicinity of CHCH.
As at end December, cash and cash equivalents stood at $44.8 million.
HL Global has proposed a first and final dividend of 3 cents per share for FY17. No dividend was declared a year ago.
Looking ahead, the group says CHCH – its remaining hospitality operation following the disposals – continues to operate in a challenging environment as new hotels and serviced apartments were set up in Cameron Highlands.
The group is also reviewing the proposed development of its property in Melaka, and will continue to source for sustainable and viable businesses.
Shares of HL Global closed flat at 46.5 cents on Monday.
