GuocoLand posts 95% fall in 1Q earnings to S$25.6 mil

SINGAPORE (Oct 24): Developer GuocoLand saw 1Q earnings fall 95% to S$25.6 million (RM76.66 million) from S$516.5 million a year ago on lower revenue and absence of one-off gain.

Revenue fell 54% to S$202.8 million. The lower revenue was mainly due to the absence of contribution from the sale of an office block in Shanghai Guoson Centre in the previous corresponding quarter. Gross profit declined by 70% due to the fall in revenue and lower gross margin arising from change in sales mix in the two periods of review.

Meanwhile, other income in current quarter decreased by 98% to S$12.4 million due to a one-time gain from the disposal of subsidiaries relating to the Dongzhimen project in the same quarter a year ago.

GuocoLand says the outlook for the property sector in Malaysia and Singapore remains poor.

Shares of GuocoLand closed two cents lower at S$2.— theedgemarkets.com.sg