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GuocoLand Q2 bottom line falls 83.6 per cent to S$10.9m

DEVELOPER GuocoLand's net profit for the second quarter ended Dec 31 sharply decreased 83.6 per cent to S$10.9 million, due to both the completion of a residential project in the previous corresponding quarter and lower completed residential sales from a smaller inventory of completed unsold units in past quarters.

Revenue fell 61.4 per cent to S$142.9 million, which the group attributed in part to higher progressive revenue recognition in the same quarter a year ago. Sims Urban Oasis obtained its Temporary Occupation Permit (TOP) in October 2017.

The group also had "substantially brought down its inventory of completed unsold units in the past quarters", it added, which also resulted in lower sales of complete residential units in the quarter.Earnings per share was at 0.55 Singapore cent from 5.95 Singapore cents in the year-ago period. 

Net profit fell 84 per cent to S$37 million for the first half of the year. Its gross profit margin stayed stable at about 30 per cent.

The company said in a statement: "The group has a balanced pipeline of mixed-use, commercial and residential projects, including the integrated mixed-use development Guoco Midtown which had its groundbreaking in November 2018."