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World Class Global posts 41% slide in 2019 net profit of S$13.6m

CATALIST-LISTED property developer World Class Global made a net profit of S$13.6 million in 2019, down 41 per cent from 2018, it said on Friday.

Revenue in the 12 months ended Dec 31, 2019 fell 54 per cent to S$205 million. This was revenue recognised from the settlement by purchasers of the Australia 108 and AVANT residential developments in Melbourne, the group said.

The group, which is a spin-off of jeweller Aspial Corp, said it continues to make good progress with the construction of Australia 108.

It has completed 94 per cent of Australia 108's construction and expects the tower to contribute positively to the group's revenue and profitability in 2020, it added.

The group has also signed sales contracts amounting to around S$400 million from its ongoing projects. This will only be recognised as revenue upon completion of the projects and settlement by the buyers.

World Class Global said: "With the recent outbreak of Covid-19 in China and globally, the group anticipates some negative impact on travel demand. However, the group expects the prospects for the hotel industry in Penang, Malaysia to remain positive in the long term. Upon the completion of the building works for four of its properties in Penang by the end of 2020, the group's hotel portfolio in Penang will increase from the present 72 keys to about 350 keys."

Full-year earnings per share was 1.49 Singapore cents in 2019, down from 2.53 cents in 2018.

Net asset value per share was 12.71 cents as at Dec 31, 2019.

World Class Global shares last traded at S$0.14 on Feb 18.