SINGAPORE (Mar 1): Sincap Group reported earnings of RMB 41.1 million ($8.6 million) for the FY17 ended December, compared to losses of RMB 6.8 million a year ago.
This was mainly due to higher revenue from continuing operations, as well as a one-off gain on disposal of the China subsidiaries, the Beijing Raffles Group, in FY17.
Revenue from continuing operations jumped 40% to RMB 306.7 million in FY17, from RMB 219.2 million a year ago.
This was led by an increase in sales of thermal coal by Sincap’s subsidiary, Orion Energy Resources, on the back of higher sales volume.
Due to management disputes between Sincap and one of its wholly-owned subsidiaries, Beijing Raffles Investment Advisory Co., no accounting records were furnished for Beijing Raffles Group. As such, the statement of comprehensive income for Beijing Raffles Group had been excluded from Sincap’s financial statements for FY17.
Beijing Raffles Group has ceased to be a subsidiary of Sincap as at Oct 12, 2017. Proceeds from the disposal amounted to $10 million in cash.
As a result of the disposal, other income surged to RMB 36.0 million in FY17, compared to RMB 2.7 million a year ago.
Earnings per share (EPS) grew to 5.16 RMB cents in FY17, compared to loss per share (LPS) of 1.37 RMB cents a year ago.
As at end December, cash and cash equivalents stood at RMB 22.9 million.
Following completion of the disposal of Beijing Raffles, the group says it has ceased its gypsum and alumina mining business segment in China.
Moving forward, the principal business activities of the group shall be the sales and trading of minerals and logistics management, as well as property development and property investment through its newly-incorporated wholly-owned subsidiary, Sincap Properties.
Shares of Sincap closed 0.1 cent down, or 5.9% lower, at 1.6 cents on Thursday.
