Earnings plunged 85 per cent at developer Wing Tai Holdings in the second quarter due to the absence of a one-off gain in the corresponding quarter last year.
The group had recorded a gain of $21.1 million on the disposal of a property subsidiary in Indonesia in the same period a year ago.
Net profit this time came in at $1.08 million for the three months to Dec 31 while revenue fell 5 per cent to $120.6 million.
The decline in turnover was due mainly to progressive sales of units recognised from The Tembusu, additional units sold at Le Nouvel Ardmore in Singapore, The Lakeview in China as well as contribution from Phase 2 of Jesselton Hills in Penang.
The group’s share of profits from associated and joint venture companies fell by 25 per cent to $15.8 million, largely due to the lower contributions from Wing Tai Properties in Hong Kong.
Distribution expenses fell 20 per cent to $22.2 million from $27.7 million due to lower rental and depreciation from its Singapore retail outlets. Administrative and other expenses rose 12 per cent to $23.8 million from $21.3 million a year ago due to the closure of Singapore retail outlets.
Earnings per share tumbled to 0.40 cent from four cents, while net asset value per share rose to $4.09 as of Dec 31 from $4.07 as at June 30.
No dividend was declared.
The firm said the effect of the cooling measures will continue to weigh on market sentiment here this year while economic conditions in Malaysia will likely keep sales soft.
In China, residential sales are expected to improve with the relaxation of home purchase restrictions in certain cities.
Wing Tai shares closed 0.3 per cent or 0.5 cent up to $1.525 yesterday.