SINGAPORE (May 12): Integrated property developer OKH Global sank to loss of $25.0 million in the third quarter ended March, compared to earnings of $3.0 million in the corresponding period last year.
This was mainly due to higher cost incurred in its development projects.
General and administrative expenses surged to $26.6 million in 3Q, from $4.7 million a year ago.
These were largely due to the recognition of sales commission arising from the sale of units over at the group’s development project, Ace@Buroh, as well as an impairment on property, plant and equipment amounting to approximately $15.9 million.
Revenue grew 31.0% to $107.9 million in 3Q, from $82.4 million a year ago.
This was largely attributable to Ace@Buroh, which obtained its temporary occupancy permit during the quarter.
Cash and cash equivalents stood at $31.3 million as at March 31, 2017.
OKH Global says it has now completed its development projects for sale, and has re-launched its marketing efforts for the remaining unsold units in Ace@Buroh and Loyang Enterprise.
Looking ahead, the group says it is cautiously optimistic that it should be able to move more of the unsold units, with the right pricing and marketing strategies.
Shares of OKH Global closed flat at 5.9 cents on Friday.
