SINGAPORE (Aug 10): Property group Singapore eDevelopment reported half year losses widened to $6.3 million from $5.3 million a year ago.
Revenue for the 1H17 ended June surged to $6.2 million from $0.9 million but cost of sales rose more steeply to $5.2 million. This resulted in gross profit of $988,000 from $179,000 a year ago.
Administrative expenses increased to $4.2 million in 1H17 from $3.0 million in 1H16 mainly due to additional expenses of $1.1 million associated with the network marketing business which commenced in 1H17.
Other expenses amounted to $3.1 million comprising $2.5 million in unrealised foreign exchange losses arising from the depreciation of the US dollar in 1H17 on US dollar-based assets relating to the group’s US property development operations and $0.6 million of withholding tax.
In 1H2017, SeD’s property development business’ home incubation delivered two units in El Tesoro, Houston, Texas, US to buyers in 1H17. Accordingly, the group recognised $0.5 million in revenue and $0.2 million in gross profit in 1H17. The remaining three units are expected to be sold in 2H17.
Ballenger Run, the group’s US project in Frederick County, Maryland, generated $2.1 million in revenue and $0.4 million in gross profit in 1H17 from the sale of 13 model lots.
A townhouse located in Washington, DC, US was sold for $1.1 million in February 2017 and reported a gross loss $0.2 million due to capitalised interest expense.
The group also acquired a 53% equity stake in US company, iGalen International Inc to conduct the distribution of dietary and health supplements through network marketing. Sales income and gross profit in 1H17 amounted to $2.5 million and $0.5 million.
As part of a strategic shift to diversify and develop new revenue streams, SeD received shareholders’ approval on Jan 24 to diversify into biomedical science, healthcare and biotechnology industries.
Shares in SeD last traded at 6.2 cents.
