SINGAPORE (Feb 19): OUE Lippo Healthcare climbed out of the red with full-year earnings of $3.4 million for FY2019 ended December, compare to losses of $9.3 million a year ago.
This was mainly due to the reversal of provision for legal cost no longer required, which amounted to $9.8 million.
This translates to earnings per share of 0.076 cent for FY2019, compared to a loss per share of 0.356 cent in FY2018.
FY2019 revenue, comprising mainly rental income from the 12 nursing homes in Japan as well as revenue from the pharmaceutical distribution business in China, was stable at $19.6 million.
This was due mainly to the effect of a stronger Japanese Yen on the rental income, which was offset by lower revenue from China.
Cost of sales dipped 6% to $5.1 million in FY2019, due mainly to lower sales of the China pharmaceutical distribution business.
Consequently, gross profit increased slightly by 3% to $14.5 million.
Administrative expenses increased by 8% to $17.8 million, due mainly to higher litigation costs incurred.
The group’s share of profits of equity-accounted investees increased by 32% to $7.3 million, driven by maiden full year’s results being included for its interest in First Real Estate Investment Trust (First REIT) and its manager, Bowsprit Capital Corporation. The acquisitions were completed in October 2018.
The group’s net asset value per share edged up to 5.69 cents as at Dec 31, 2019, from 5.52 cents a year ago.
As at end December, cash and cash equivalents stood at $52.7 million.
With the growing severity of the Covid-19 novel coronavirus outbreak and its uncertain eventualities, OUE Lipo Healthcare says it remains prudent about its healthcare operations in Asia and is actively monitoring the rapidly evolving situation.
Shares in OUE Lippo Healthcare close 0.3 cent higher, or up 5.6%, at 5.7 cents on Wednesday, before the results announcement.
