LOWER profits from development projects in Singapore and China sent third-quarter profits at GuocoLand plunging from $34.4 million last year to just $2.6 million.
The 93 per cent drop was on the back of a less painful 27 per cent fall in revenue to $104 million for the three months to Mar 31.Although GuocoLand did not give details about the earnings fall, analysts said that a fair amount of profit had already been recognised for earlier projects while some developments have yet to be launched.
There is still plenty happening on all fronts. In Singapore, it has launched three developments - Le Crescendo, The View@Meyer and The Quartz.
GuocoLand said sales of about 90 per cent have been achieved at the first two projects. It has also launched the remaining units of The Quartz with about 57 per cent sold.
Its residential apartments at West End Point in Beijing are almost fully sold.
The firm had earlier bought a company - Beijing Cheng Jian Dong Hua Real Estate Development - which is undertaking the Dongzhimen project in Beijing.
This project is linked to several disputes centring on loans from various parties. Legal action has been launched in some cases.
GuocoLand also faces legal tussles, with the Hainan Trade Bureau claiming that ownership of a company, now under GuocoLand, should revert to its original owners.
Things seem more settled in Malaysia, where GuocoLand is planning to launch the Oval Apartments, a development in Kuala Lumpur City Centre.
In Vietnam, the company is finalising the sale of the Phase 1 units of the residential part of The Canary, a development next to Vietnam Singapore Industrial Park, north of Ho Chi Minh City.
Earnings per share came to 0.31 cents compared with 5.64 cents last year.
Net asset value per share was $2.26 as at March 31, compared with $2.30 as at June 30.
The shares ended unchanged at $3.55 yesterday.
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