SINGAPORE (Feb 6): OKH Global announced that its 2Q18 earnings has increased more than threefold to $3.01 million, compared to $0.86 million in 2Q17.
Revenue for the quarter came in at $6.28 million, 117% higher than $2.89 million a year ago, attributed largely to a higher income from sale of units from completed projects.
Revenue from the group’s property development segment was approximately $2.59 million which was attributed to units sold in its completed development project as compared to no revenue in 2Q17 as there were no additional sales from completed projects during the quarter.
Revenue from the property investment segment was $3.69 million, 28.4% higher as compared to $2.87 million last year, attributed mainly to rental income received from additional leased units in Loyang Enterprise, Tai Seng Link and ACE@Buroh.
Consequently, cost of sales increased by 72.9% to $2.67 million from $1.54 million last year.
Hence, gross profit for 2Q18 was $3.61 million, 167.7% higher than $1.35 million in the previous year.
As at Dec 31, 2017, the group’s cash and cash equivalents stood at $5.21 million.
Notwithstanding the current state of the industrial real estate market in Singapore, the group has started looking for attractive industrial land for development opportunities, while pursuing its overseas business in the region.
As part of its continuous review, the group is assessing the relevance of the properties and fixed assets against its overall strategies, and may monetise some of these assets through sales to further strengthen its financial strength as it explores new business opportunities.
Shares in OKH closed at 4.7 cents on Tuesday.
