OUE Lippo Healthcare Q2 loss narrows to S$2.9m

OUE Lippo Healthcare saw its loss for the second quarter ended June 30 narrow year-on-year to S$2.9 million from S$20.6 million, due to the absence of an impairment loss incurred in the year-ago period, the group announced after the market closed on Wednesday.

Revenue fell 12.2 per cent to S$9.5 million from S$10.8 million, due mainly to lower revenue from the Wuxi New District Phoenix Hospital and the China pharmaceutical distribution business. Revenue from rental of Japan nursing facilities was stable in Japanese yen terms but came in lower when translated to the Singapore dollar.

There was no impairment loss for the quarter under review, in contrast to a S$15.5 million impairment loss on trade and other receivables incurred in the year-ago period.

Loss per share for the second quarter was 0.14 Singapore cent, compared to 1.24 Singapore cents for Q2 2017.

In its results announcement, the company noted various initiatives it has undertaken to rebuild its financial health and expand its business network in Asia, including the refinancing of existing loans at lower interest rates, repayment of high interest bearing loans, and strategic partnerships with ITOCHU Corporation and China Merchants Group.

OUE Lippo Healthcare shares closed down 0.3 Singapore cent or 2.8 per cent at 10.5 Singapore cents on Wednesday before the release of its results.