SINGAPORE (May 8): HLH Group, the starch manufacturer and property developer, swung back into profitability with 1Q earnings of $4.2 million from a loss of $2.4 million year ago.
Revenue more than doubled to $5.5 million primarily due to the revenue recognition of the group’s first overseas mixed development project D’Seaview. However, cost of sales also widened to $2.6 million from $0.2 million a year ago.
Other income came in $2.9 million due to the gain on recognition of deferred tax asset.
HLH’s Agriculture Division focuses on the cultivation of tapioca and the production of starch through its factory has the capacity of producing 120 tons of starch on a daily basis.
As previously disclosed, 2,400ha were relocated to be directly cultivated by the division.
To further enhance the fresh cassava yield, the remaining 5,100ha under the joint cooperation agreement were also taken over from April 24.
Looking ahead, the completion of D’Seaview is expected to be on schedule for end 2018.
Shares of HLH closed at 1 cent.
