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Wing Tai's profit slumps in absence of one-off gains
Regional property group Wing Tai Holdings reported an 86 per cent fall in its fourth-quarter net profits, while its revenue slipped 41 per cent year-on-year.
Wing Tai's Q4 net profit attributable to shareholders was S$18.1 million for the three months ended June 30, 2019, down from S$131.3 million in the year-ago period. Its full-year net profit was down 79 per cent to S$46.8 million, from S$225.2 million.
It said the decrease in its full-year profit was due mainly to the absence of a one-off gain from the disposal of a subsidiary company and the lower contribution from Wing Tai Properties in Hong Kong; the share of profits from Wing Tai Properties in the previous year had included one-off gains on the disposals of an industrial building, Winner Godown Building, and of a Grade A office building, W Square, in Hong Kong.
The group's revenue for the fourth quarter was S$63.4 million, down over 40 per cent from the S$107.3 million recorded the year before. For the full year, the group's total revenue was S$322.6 million, down 10 per cent year-on-year from S$360.4 million.
It said the full-year decrease was due mainly to lower contributions from development properties. "The current year revenue from development properties was largely attributable to the additional units sold in Le Nouvel Ardmore in Singapore and the increase in property sales in Malaysia," it said.
Wing Tai's earnings per share for the fourth quarter was 2.06 cents, down from 16.67 cents the year before.
The group declared a first and final dividend of 3 cents per share, and a special dividend of 2 cents per share, for the current period. Last year, it paid out a first and final dividend of 3 cents per share, and a special dividend of 5 cents per share.
Wing Tai shares closed 1 cent up at S$2.07 on Wednesday.