SINGAPORE (Aug 6): World Class Global posted 2Q18 earnings of $1.24 million, reversing out of a $4.80 million loss in 2Q17.
This brings 1H18 earnings to $1.58 million, compared to a loss of $2.91 million in 1H17.
Revenue for 2Q18 stood at $0.08 million due to revenue recognition from the settlement of AVANT and Australia 108 residential units.
As at June 30, 195 units of AVANT and 108 units of Australia 108 had been successfully settled by purchasers, representing over 96% and 38% of the completed units respectively.
Other operating expenses doubled to $5.99 million from $2.92 million a year ago, mainly due to higher holding costs incurred for properties held for sale and recognition of sales commission based on settlements by purchasers of AVANT and Australia 108.
Interest income from bank balances saw a significant increase to $1.27 million from $0.15 million last year, due to higher quantum of interest-bearing deposits at banks.
As at June 30, the group’s cash and cash equivalents stood at $158.4 million.
In the next 12 months, the group will continue with the sale of Nova City project and intends to launch Albert Street project in Brisbane, Australia, subject to market conditions in Brisbane then.
Meanwhile, the group has completed the refurbishment, upgrading and building works of 16 properties in Penang, Malaysia and will continue the refurbishment, upgrading and building works of some of the remaining properties. It has also commenced hotel operations at some of its completed properties in Penang and has received positive reviews to date.
World Class Global listed in June 2017 after selling shares for 26 cents at its Initial Public Offering.
See: World Class Global says IPO 2.1 times subscribed
Shares in World Class Global closed at 20 cents on Monday.
