SINGAPORE (Feb 9): Memories Group, formerly known as SHC Capital Asia, announced that its 3Q18 has incurred a loss of US$5.5 million ($7.3 million), compared to earnings of US$0.4 million in 3Q17.
Revenue for the quarter was up by 57.4% to US$3.87 million from US$ 2.5 million a year ago, mainly contributed by the acquisitions of the HAL Business (Hotel Segment) and the DMC Business (Services Segment).
Cost of sales increased by 86.8% to US$2.1 million from US$1.11 million last year.
Hence, gross profit came in at US$1.8 million, 33.25 higher than US$1.4 million in the previous year.
During the quarter, the group recorded other income of US$58,000, compared to a loss of US$375,000.
The group also incurred acquisition cost arising from reverse acquisition of US$6.3 million, which was not recorded in the previous year. The cost was derived from the difference between the fair value of consideration shares deemed issued by the legal subsidiary, MM Myanmar over the fair value of the group’s identifiable net assets. This is a one-off non-operating expense.
Administrative expenses were US$1.0 million, 84.9% higher than US$0.6 million last year, due to the acquisitions of the HAL Business and DMC Business.
Serge Pun, executive chairman of Memories Group says, “We have, therefore, been actively negotiating for acquisition targets within Myanmar to expand our asset portfolio, and are also looking into expanding our balloons business in the region.”
Shares in Memories Group closed 2 cents higher at 25 cents on Friday.
