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King Wan sinks to Q3 net loss of S$5.86m

KING Wan Corporation swung to a net loss for the third quarter ended Dec 31, 2015, to S$5.86 million, from a net profit of S$85,379 in the corresponding period a year ago.

This is despite a 22 per cent rise in revenue to S$26.25 million, thanks to higher recognition of revenue from increased ongoing mechanical and electrical (M&E) contracts during the quarter.

But this was offset by an allowance made in connection with the group's real estate development business in Dalian, China.

Said King Wan: "In view of the continuing depressed real estate market in Dalian, China, the group made allowance for doubtful receivables due from its associate, Dalian Shicheng Property Development (S) Pte Ltd (DLSC), amounting to an aggregate of S$8 million for the nine months ended December 31, 2015. An allowance of S$12.0 million was made for amounts due from DLSC Singapore in the last financial year ended March 31, 2015."

Loss per share for the quarter stood at 1.68 Singapore cents, compared to an earnings per share of 0.03 Singapore cents in the same quarter the year before.

No dividend was declared.