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Yongmao's Q4 net profit up 21% on one-off gains
FOURTH quarter earnings for towercrane manufacturer Yongmao Holdings rose 21 per cent despite a fall in revenue, due to an increase in other income and a reversal in provision for debts.
Yongmao said on Wednesday that its net profit for the three months ended March 31 grew to 8.3 million yuan (S$1.7 million), from 6.9 million yuan a year ago.
Revenue fell 31 per cent to 116.5 million yuan as a result of the ongoing property slump in China and uncertainty in the global economy.
But a one-off interest income and gain on disposal of property, plant and equipment in the fourth quarter boosted other income to 5.3 million yuan, from 0.5 million yuan a year ago.
Yongmao also recorded a credit in other operating expenses of three million yuan, compared to a negative 7.5 million yuan in the fourth quarter of 2015, as it reversed an earlier provision for doubtful debts.
The firm said that the investment slowdown in China has affected the domestic demand for construction equipment including towercranes in the country. Demand for towercranes in other overseas markets is mixed, with Taiwan and Australia likely to see an increase in construction activities, but Singapore and Macau remaining challenging.
"In light of the present weaker China economy and less than favourable global market conditions, the group views that the overall business environment for the next 12 months will remain challenging," it said.