Wing Tai books S$50 million net loss in H2
Yong Hui Ting
PROPERTY group Wing Tai Holdings sank into the red for the second half-year ended June with a S$50 million net loss, a reversal from a net profit of S$86.4 million in the corresponding period the year before.
This was largely due to a loss from its associated and joint venture (JV) companies, reported at S$43.8 million. This was a reversal from last year’s S$90.7 million in share of profits from associated and JV companies.
In announcing its results on Friday (Aug 25), the group posted a 4 per cent rise in revenue to S$215.5 million, from S$208 million in H2 2022.
Loss per share for the second half-year was S$0.0701, compared to earnings per share of S$0.1048 cents the year before.
The company recommended a first and final dividend of S$0.03 per share, with an additional special dividend of S$0.02 per share. Shareholders will be notified of the dates for its books closure and payout later, it added.
For the full year, net profit shrank 91 per cent to S$13.3 million, from S$140.2 million in H2 last year. Revenue slipped 7 per cent to S$476.3 million from S$514.6 million, on the back of lower contribution from development properties.
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The group attributed the adverse share of results from associated and JV companies to a lower operating profit and higher fair-value losses on investment properties from Wing Tai Properties in Hong Kong. This was, however, partially offset by higher contributions from Uniqlo in Singapore and Malaysia.
It added that it will continue to monitor the property market, and release more residential units for sale at the appropriate time.
This month, the company released guidance that its full-year net profit would see a “significant decrease” due to an “adverse change” in the fair value of the investment properties owned by its associated company.
Shares in Wing Tai closed down 0.8 per cent on Friday before the announcement, falling S$0.01 to S$1.32.
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