GSH posts S$3.3m loss for Q4 on lower revenue

MAINBOARD-LISTED property developer GSH Corporation on Tuesday reported a net loss of S$3.3 million for the fourth quarter, compared with a net profit of S$6.6 million a year ago, dragged by a plunge in revenue.

For the three months as at end December 2016, revenue fell 69.8 per cent year on year to S$17.7 million.

For Q4 2015, its property business contributed S$45.4 million in revenue, compared with S$1.7 million in Q4 2016.

GSH's hospitality business grew 22 per cent to S$15.9 million in Q4, due mainly to the increase in room occupancy rates at its two hotels in Sutera Harbour Resort in Kota Kinabalu, Sabah.

Correspondingly, cost of sales dropped 77.3 per cent to S$8.6 million.

In its outlook, the group said that slower economic and rising interest rates may continue to weigh on the market. "However, barring any unforeseen circumstances, with the influx of Chinese investment in Malaysia in the medium to long term, the Malaysia property outlook is positive."