SINGAPORE (Nov 2): OUE Lippo Healthcare, the former International Healthway Corporation, reported a 3Q attributable loss of $3.7 million from earnings of $10.1 million a year ago.
This is the first quarterly reporting from OUE Lippo, after property group OUE launched a surprise takeover offer of IHC in February, valuing the Catalist-listed nursing home owner at about $175.9 million.
Revenue rose 1.8% to $11.7 million, thanks to rental income from the group’s nursing facilities in Japan which was stable but was negatively affected by foreign exchange fluctuations.
The decline was offset by better performance from the Wuxi New District Phoenix Hospital in Wuxi, Jiangsu, China and the China drug distribution business.
However, it recorded an operating loss of $104,000 compared to an operating income of $14.6 million due mainly to the absence of rental income from one of the deconsolidated subsidiaries, IHC Australia First Trust, and the absence of a one-off gain of $13.3 million arising from the deconsolidation of IHC Management, IHC Management (Australia), IHC Medical RE, IHC Healthcare REIT, IHC Australia First Trust and IHC Australia Second Trust.
In its outlook, OUE intends to stabilise and operate the group as a going concern and also, to grow the group’s operations and businesses. The group is also in the process of reviewing its operations, businesses and development plans.
Shares in OUE Lippo Healthcare closed 1 cent higher at 13 cents.
