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TLV in equity deal to enter China retail market
HOMEGROWN jeweller TLV Holdings is acquiring an equity stake in Shimao Jewellery from Maoming Liutao Zhubao Chuangyi Chanye Co Ltd (MMLT).
TLV has agreed to pay a cash consideration of 1.96 million yuan (about S$411,000) for the 49 per cent equity interest in Shimao Jewellery.
This acquisition will be funded by internal cash resources.
The homegrown jeweller, after Tuesday trading close, added that with this acquisition in place, it would no longer look at incorporating a joint venture with MMLT for the purpose of entering the jewellery trading and retail market in China.
TLV posted a 48 per cent increase in full-year net profit to S$3.2 million despite a marginal dip in its revenue.
Revenue for the year ended March 31, 2018 was S$111.81 million, down from S$112.10 million for the previous financial year.
Lower other operating expenses mainly on a reduced provision of doubt debt helped to bolster the jeweller's bottom line.
Other operating expenses fell 37 per cent to S$1.49 million, more than offsetting a decline in other operating income to S$104,000, down from S$528,000.