SINGAPORE (May 14): Raffles Infrastructure Holdings reported 5Q19 earnings ended March of RMB 33.1 million ($6.6 million), reversing from a loss of RMB 1.9 million in 5Q18.
See also: Raffles Infrastructure, the former China Fibretech, reverses out of the red in 2Q
The group has introduced a fifth and sixth quarters as its financial year end has been changed from Dec 31 to June 30 as per the announcement made on Feb 1.
5Q19 revenue surged 6,536% to RMB155.9 million, due to contributions from the infrastructure segment. Gross profit improved in 5Q19 by 32,712% to come in at RMB50.8 million.
To recap, in 2018, the group marked its first foray into the Asian infrastructure industry with its investment in Bo Dao Road Construction Co. Its first project is the Xingwen County rural road infrastructure with an approximated value of RMB 550 million, and is anticipated to be completed by FY19. As at March 31, the group has delivered five out of 26 parcels of the project, with three of the parcels being delivered in 5Q19.
See also: Raffles Infrastructure to build tourist railway in China for $1.2 bil
Selling and distribution expenses also decreased by 85% to RMB 0.02 million in 5Q19. Administrative expenses increased 1% to RMB 1.68 million in 5Q19 mainly attributable to professional fees, director fees, rental, payroll and other expenses.
The finance cost was lower in 5Q19 compared to 5Q18 due to the nil loan borrowing during the period. The income tax expense was provided at 25% of the profit generated from the infrastructure during the period.
Raffles Infrastructure say the group will be engaging in more large scale road and rail projects in Asia as it seeks to create environmentally friendly infrastructure developments in the region that will help boost its financial results and create value for its shareholders.
As at 12 noon, shares in Raffles Infrastructure are trading at 37.5 cents.
Raffles Infrastructure, formerly known as China Fibretech, resumed trading on the Singapore Exchange last Sept after six new shareholders agreed to inject fresh funds to rejuvenate the company.
See also: China Fibretech says SGX has no objections with trading resumption proposals
The Fujian province-based dye maker was listed on SGX Mainboard in June 2008 but its shares were suspended in Nov 2015 after a subsidiary received damage claims from three customers who complained they incurred “substantial damages and financial losses” for sub-standard products.
In March 2017, SGX also filed a complaint with Chinese authorities against its former executive chairman and CEO for alleged offences under the Chinese Penal Code as he had approved payment for claims amounting to some RMB466 million ($94.4 million) without the permission of the board and without providing proof that the claims had been approved by the company.
