SINGAPORE (Feb 13): King Wan Corporation has announced earnings of $1.7 million for 3Q18, down 50% from its earnings of $3.4 million a year ago on lower share of profit of associates.
Revenue for the quarter grew 2% to $22.9 million from $22.4 million previously, as a result of more mechanical and electrical (M&A) engineering activities being carried out over the quarter as compared to a year ago.
Meanwhile, a $0.2 million share of loss of associates was recorded over the quarter as compared to a gain of $2 million a year ago. This was largely due to lower share of profits from King Wan’s investment in Skywoods, a residential development project in Singapore, which has been fully completed and sold in the prior period.
Allowance for amount due for associate grew 55% to $3.1 million from $2 million a year ago, which was mainly in relation to the group’s property development in Dalian, China.
For the 9M18 ended Dec 2017, revenue fell 9% to $56.5 million on comparatively lower volume of ongoing M&E contracts available for revenue recognition, resulting in a 60% decline in earnings to $0.5 million from $1.3 million previously.
In its outlook, King Wan says it expects the M&E business segment to remain challenging in the next 12 months given continuous pressures on contract values as well as stiff competition for new projects.
Based on its current order book, the group expects M&E to remain its core business which will contribute positively to the group’s results for the next 12 months.
Shares in King Wan closed 1.35% higher at 15 cents.
