SINGAPORE (Feb 12): New Silkroutes Group is back in the black ater closing 2Q18 with earnings of US$87,000 ($0.1 million) compared to a loss of US$0.3 million a year ago, which the group says marks its first quarterly net profit in more than three years.
This was largely due to a 50% surge in revenue over the quarter to US$185.5 million from US$123.8 million, mainly attributable to increased oil trades in addition to revenue contributed by the group’s newly-acquired healthcare subsidiaries.
Other income dropped to US$0.1 million in 2Q18 from US$0.4 million in 2Q17, substantially because the deposit for the acquisition of Thai General Nice Coal and Coke Co., Ltd. was converted into equity in 4Q17, while interest income on the deposit was no longer applicable.
Personnel expenses increased to US$1.6 million from US$0.7 million for 2Q17, mainly due to the personnel expenses of New Silkroutes’ newly-acquired healthcare subsidiary, Healthsciences International, and 12 dental companies.
The group has registered a loss of US$0.5 million for 2H18, unchanged from a year ago.
Following the recent acquisition of The Dental Hub’s three clinics on 1 Nov 2017, New Silkroutes says it intends to continue expanding its healthcare unit.
See: New Silkroutes Group acquiring 70% stake in 3 dental clinics for $3.2 mil
Shares of New Silkroutes have been suspended on the SGX since 4 Dec 2017 to prevent any unusual share-price activity while negotiations on potential transactions are ongoing, although the group says it expects to lift the suspension shortly.
See: New Silkroutes' trading halt yet to be lifted due to ongoing negotiations for new acquisition
