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OUE Lippo Healthcare still in the red for Q4 and fiscal 2017
OUE Lippo Healthcare Limited (OUELH) remained in the red for the fourth quarter ended Dec 31, 2017 and the full year, as it continued to incur other operating losses.
The group reported a net loss of S$55.2 million in the three months ended Dec 31, 2017, after inking a net loss of S$86.2 million a year ago.
This came as it incurred other operating losses of S$44.3 million in the fourth quarter, compared to S$76.1 million in the year-ago period, amid an absence of a one-off net gain on deconsolidating of subsidiaries, provisions for legal and related expenses and higher impairment losses on trade and other receivables.
Its full-year loss was deeper at S$90.7 million, compared to S$76.8 million for fiscal 2016. This came amid other operating losses of S$62.7 million for the full year, steeper than the S$58 million incurred in fiscal 2016.
Revenue dipped 0.5 per cent to S$10.6 million. The decrease was due mainly to a reduction in contribution from certain Australian properties owing to the group's deconsolidation of interest in certain subsidiaries.
Last month, the group announced a strategic partnership with ITOCHU Corporation which, through its wholly-owned subsidiary, will subscribe for 562.5 million new shares in the group, representing 25.3 per cent of the enlarged share capital.
The share placement is expected to be completed in February and strengthen the financial position of the group, OUELH said in its financial statement.
This will also put the group in good stead to execute its business plans, it added.
"The group intends to become a leading healthcare company in Asia by strengthening its presence in China, as well as expanding into new markets in South-east Asia, in order to deliver enhanced value to shareholders."