SINGAPORE (Feb 14): KOP Limited is back in the black with $7 million of earnings for 3Q18, compared to its loss of $0.5 million a year ago on a near-tripling of revenue over the period under review.
Revenue was up 179% at $14.8 million from $5.3 million a year ago mainly due to an increase in revenue from the real estate origination and management services segment and hospitality segment – driven by the establishment fee from a joint venture, Shanghai Snow Star Properties, and higher occupancy rate in relation to Montigo Resorts, Nongsa, respectively.
In spite of the higher revenue, cost of sales fell 38% to $1.9 million from $3.1 million a year ago.
Administrative expenses however grew 32% to $5 million from $3.8 million in 3Q17 due to net foreign exchange (forex) losses from the translation of payables from USD to SGD.
For the nine months ended Dec 2017, KOP booked earnings of $2.1 million, down 55% from $4.5 million in 3Q17.
In view of macro uncertainties and downturn of the global economy, the group says it will focus on the growth of its existing businesses and will only expand cautiously under opportunistic and strategic circumstances. In the meantime, KOP says its hospitality segment and property investment in Grade-A Prudential Tower continues to contribute healthy recurring income.
Shares in KOP closed 2.35% lower at 8.3 cents.
