PROPERTY and retail company Wing Tai : W05 0%recorded a net profit of S$20.5 million for the first half of its financial year ended Dec 31, 2023.

This was a 68 per cent drop compared to the same period a year ago.

The decline was partly because the S$63.3 million net profit recorded in the first half of its previous financial year included a one-off writeback of S$21.8 million, which was for a deferred tax provision that was no longer required.

Nonetheless, revenue for the group fell 63 per cent to S$97.7 million in the first half of its current financial year, mainly due to lower contributions from its development properties, said Wing Tai in a bourse filing on Tuesday (Feb 6).

Revenue for the current period was largely attributable to the progressive sales recognised from The M at Middle Road in Singapore and the sale of residential units in Jesselton Hills in Malaysia.

Operating profit also fell to S$9.2 million, a 68 per cent drop compared to the same period a year ago, mainly due to lower contributions from its development properties.

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Earnings per share came in at 2.25 Singapore cents, compared to 7.88 Singapore cents a year ago.

Net asset value per share as at Dec 31, 2023 was S$4.05, compared to S$4.13 six months ago. Net gearing ratio as at the same date was 0.03 times, lower than the Jun 30, 2023, ratio of 0.08 times.

Wing Tai expects heightened geopolitical uncertainties to weigh on the global economy.

“Singapore’s economic growth will also depend on the external environment. Buying sentiment for private residential property in Singapore is expected to remain cautious until greater confidence returns. At the appropriate time, the group will release more residential units for sale,” it said in the filing.

Shares of Wing Tai fell 0.8 per cent or S$0.01 to close at S$1.21 on Tuesday.