GuocoLand posted exceptional net profit earnings of S$57.12 million during the Q2 of the year 2016 that ended on 31st December. This was a 46% surge from $39.03 million that was posted in the year 2015 and was attributed to subsidiaries’ higher earnings. However, the revenues posted were down by 3% bringing the total revenue to S$231.98 million down from S$239 million that was recorded in 2015.
“In the current quarter, we recorded an increased share of profit of up to S$44.1 million from our various joint ventures and associates. This was greatly bolstered by our Malaysian associate who successfully disposed off a piece of land in Mukim and District of Sepang, Selangor,” developer said in SGX filing.
Revenues posted for the past six months ending December 2016 reduced by 36% to S$434.7 million. This was low comparing to 2015, where the revenue posted was S$679.34million which was largely attributed to the selling of a Shanghai Guoson Centre office block.
(An artist impression of Leedon Residence)
This led to the company posting half-year net profits of S$82.8 million down from S$555.53 million recorded previously. On the positive side, the tax expenses plus administrative expenses declined by 83% and 35% respectively despite the gloomy business environment.
During the six-month period, GuocoLand successfully managed to acquire a residential site at Martin Place in Singapore (8 Martin Residences) at a cost of S$595.1 million. In addition, it also managed to get permission develop a mixed-use site that measures 48,961 sq. m in Chongqing, China at a price of S$747.91 million within the same period.
The project with both residential and commercial units will be done jointly with Hong Leong Holding Pte LTD (China). The company has a 25% share in the development.
The inventories also increased to S$3.38 billion by the 31st December 2016 accounting for a 40% increase.
GuocoLand is a listed company in Singapore Exchange with property developments in Singapore, Vietnam, China and Malaysia. Among its property developments in Singapore is Tanjong Pagar Centre which is a mixed use development, Goodwood Residence, Guoco Tower, Leedon Residence, The Quartz, East Coast, Sims Urban Oasis and Sophia Residence.
(Development Name in brackets are subject to confirmation)