SINGAPORE (Apr 25): Hwa Hong, the investment holding company whose subsidiaries are engaged in property investment and development, saw first quarter earnings ended Mar 31 fall 78.4% to $0.69 million in 1Q18, compared to $3.22 million in 1Q17.
Group revenue dropped 10.5% to $2.60 million from $2.91 million a year ago, mainly due to lower contribution from its investments segment, but partially offset by higher contribution from its rental segment.
Cost of sales also decreased by 12.8% to $0.92 million from $1.06 million a year ago.
During the quarter, the group recorded a loss in changes in fair value of investment securities of $0.41 million, which was absent in 1Q17, due to decreases in fair values for fair value through profit and loss investment securities arising from unfavourable market conditions.
Hence, gross profit for the quarter came in at $1.27 million, 31.2% lower than $1.85 million last year.
Other income more than halved to $1.66 million compared to $3.93 million a year ago, as the group did not register foreign exchange gain during this period. In 1Q17, the group recorded a foreign exchange gain of $2.18 million.
The group did not register other operating costs in 1Q18, as compared to operating costs of $0.48 million in 1Q17.
The group also recorded a profit from its share of after tax results of associates and joint ventures of $0.20 million, compared to a loss of $0.15 million in the previous year, mainly due to share of profit from an associated company, Clan Kilmuir (Jersey).
Shares in Hwa Hong closed at 32 cents on Wednesday.
