SingHaiyi posts 64.1% fall in H2 net profit to S$4.9m

REAL estate group SingHaiyi on Tuesday reported a net profit of S$4.9 million for the half year ended March 31, 2020, down 64.1 per cent from the year-ago period.

The group recorded total revenue of S$44.2 million for H2 2020, compared S$25.7 million a year ago. The increase of S$18.5 million year-on-year was mainly due to the progressive revenue recognised for Parc Clematis of S$27.7 million and The Gazania of S$5.1 million. This was offset by the decrease in revenue recognised for Phase 2 of Vietnam Town of $11.0 million. Vietnam Town is a commercial condominium development project in San Jose, California.

Earnings per share came to 0.117 Singapore cent, versus 0.322 cent previously.

Share of results of equity-accounted investees (net of tax) increased by $10.6 million, from S$25.6 million in H2 2019 to S$36.2 million in H2 2020, mainly due to the increase in share of profit of the 35-per-cent equity interest in Park Mall, the owner of 9 Penang Road, a commercial property with Grade A office and retail space. The profit was mainly attributable to the fair-value gain recognised on 9 Penang Road.

In the financial year ended March 31 (FY20), the group recorded a net loss of S$7.8 million, reversing the net profit of S$22.6 million in the year-ago period; revenue sank by 24.7 per cent to S$57.2 million for FY20.

The group said that it expects a challenging operating environment in the upcoming financial year and will continue to practise prudent capital and cash flow management to manage potential financial implications arising from Covid-19.

During this period, the group was able to immediately leverage digital marketing tools such as virtual showflat tours and online sales presentations, which were produced as part of its integrated marketing strategy to promote its developments to potential buyers, said SingHaiyi.

The counter closed at 7.1 Singapore cents on Monday. (see amendment note)

Amendment note: An earlier version of this story stated that SingHaiyi last traded on Tuesday. It was in fact Monday.