SINGAPORE (May 10): OUE Lippo Healthcare reported a 1Q18 net loss of $2.7 million, 75.5% smaller compared to the net loss of $11.2 million a year ago.
Revenue for 1Q18 decreased 6.1% to $9.8 million from $10.5 million a year ago due mainly to lower revenue recorded by the Wuxi New District Phoenix Hospital and its China drug distribution business.
Revenue from rental of the Japan nursing facilities was stable in Japanese Yen terms but was lower when translated to the Singapore dollar due to lower 1Q18 average exchange rate compared with the average exchange rate for 1Q17.
As cost of sales decreased 7.8% to $9.8 million, gross profit and gross profit margin for 1Q18 were stable compared to 1Q17.
Administrative expenses increased by $1.0 million to $3.8 million mainly to higher staff and related cost incurred in 1Q18.
In the last 12 months, OUE Lippo Healthcare had put in place various strategic initiatives to enable the group to rebuild its financial health and also, to develop and expand its network in Asia.
The key initiatives included the acquisition of a 100% stake in Brainy World Holdings, which holds a 50% stake in a sino-foreign joint venture with China Merchants Landmark (Shenzhen) Co. and the placement of 562.5 million new shares to Browny Healthcare, which is a subsidiary of Itochu Corporation.
The group remains focused on rebuilding its financial position, developing its pan-Asian healthcare capabilities and providing high quality and sustainable healthcare facilities by leveraging on the strengths of its major shareholders as well as strategic partnerships with local and industry leaders.
Shares in OUE Lippo Healthcare last traded at 13 cents in Apr 27.
