SINGAPORE (Feb 14): Raffles Infrastructure, formerly known as China Fibretech, reported 2Q earnings of RMB24.5 million ($5 million) compared to a net loss of RMB974,000 a year ago.
See: China Fibretech says SGX has no objections with trading resumption proposals
See also: Raffles Infrastructure to build tourist railway in China for $1.2 bil
Revenue -- mostly from the group’s infrastructure segment -- surged 6.5 times to RMB33.8 million while gross profit surged nearly 25 times to RMB12.7 million mainly due to the group’s delivery of two out of 26 parcels of the Xingwen County rural road project.
Raffles Infrastructure says it has decided to deconsolidate the fabrics operations given the group has not been able to get clarity of its operation as mentioned in the report announced in the previous quarter.
As a result of the deconsolidation of the fabrics subsidiaries, selling & distribution expenses decreased 76% from to RMB71,000 in 2Q19.
General and administrative expenses increased 139% to RMB2.9 million in 2Q19 mainly due to professional fees, director fees, rental fees, payroll expenses and office, fines & penalty.
Raffles Infrastructure says China rail infrastructure industry continues to provide the group with opportunities to be involved in many large-scale projects.
On Oct 22 October, the group announced that it has, together with its consortium partners Tianfu Railtech Valley and China Railway 23rd Bureau Group Co, signed a framework agreement for the building of a tourist railway project worth estimated RMB6 billion.
Shares in Raffles Infrastructure last traded at 30 cents.
