Corporate digest

LHN Limited

LHN Limited has bought a 30-unit property at 115 Geylang Road for S$13.5 million, the company said on Wednesday.

The property is currently being operated by the tenant as a hotel, under a three-year occupation agreement that commenced on Nov 15, 2020 without an option to renew.

LHN intends to operate the property as a co-living space. This will expand its portfolio of co-living properties in Singapore, increase the brand value of its Coliwoo brand, and provide potential capital appreciation and additional opportunities for the group to generate revenue, it said.

Jiutian Chemical

THE group has posted a net profit of 90.31 million yuan (S$18.48 million) for its first quarter ended March 31, over 30 times that of its net profit of 2.87 million yuan in Q1 FY20.

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Similarly, the group's revenue has increased 120 per cent year on year to 439.25 million yuan. This was mainly attributed to an increase in both sales volume and average selling prices of its main products, dimethylformamide (DMF) and methylamine, said Jiutian in a quarterly update.

For the quarter, average selling prices of DMF and methylamine were 9,344 yuan per tonne and 9,272 per tonne respectively - 98 per cent and 38 per cent higher than their prices in Q1 FY20. The sales volume of DMF and methylamine in Q1 FY21 were also 65 per cent and 32 per cent higher than in the preceding year respectively.

As a result of the higher average selling prices of its products, Jiutian's gross profit increased by 910 per cent, which in turn pushed its gross profit margin up from 7 per cent in Q1 FY20 to 32 per cent in Q1 FY21.

KrisEnergy

FOLLOWING the independent review of its Apsara field's performance by a third-party petroleum engineering consultant, it was concluded that the estimated ultimate recovery from the five development wells is likely to be a small fraction of the pre-development estimates, mainly due to significantly lower volume of hydrocarbon-in-place connected to the wells and the geological complexity resulting in smaller oil accumulations.

Another factor for Aspara's underperformance includes a lower-than-anticipated well productivity, due to potential formation damage in the oil-bearing zones.

KrisEnergy said that despite the recovery in oil prices, "the disappointing recovery expected from Apsara production will significantly reduce revenues generated from the development, and therefore further deteriorate the company's financial condition."

Tee International

ITS financial year end will be changed to Sept 30, from May 31 previously.

As such, the company's present financial year will be a 16-month period from June 1, 2020, to Sept 30, 2021.

The change was done to facilitate better management of resources and internal processes for a smooth flow of business operations and financial reporting, said the group.