By Romesh Navaratnarajah:GuocoLand, a wholly-owned property subsidiary of Hong Leong Group, has posted a net profit of S$162,000 for the third quarter ended 31 March 2012, a reversal from the net loss of S$920,000 recorded over the same period last year.
The company said revenue for the quarter grew 16 percent to S$104.5 million. This was mainly attributed to higher revenue contributions from its residential projects in Singapore.
GuocoLand's good showing also benefited from lower administrative and other general expenses, but the firm's finance costs rose $6.1 million, mainly due to higher borrowings.
In terms of nine-month results, GoucoLand's revenue declined 39 percent to S$358.8 million due to progressive recognition of its local residential projects during the period.
"In the previous corresponding period, in addition to contribution from Singapore projects, revenue was recognised for the sales of completed projects in China, such as Ascot Park in Nanjing and SOHO units and an office block in Shanghai (GuoSon Centre). With the adoption of INT FRS 115 (an accounting rule), sale of units in Tianjin Seasons Park, as well as Goodwood Residence units (pictured) under the deferred payment scheme, were not recognised as revenue," according to the company.
Administrative expenses also fell to S$41.6 million during the period, mainly because of share option expenses written back for lapsed options and declining general expenses on the back of unrealised mark-to-market loss on foreign exchange hedges and higher net foreign exchange losses.
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