GuocoLand has recorded a remarkable recovery in its second-quarter net profit.
The property developer posted a net profit of S$60.4 million for its second quarter ending December 31, a hefty increase from its earnings of about S$900,000 a year ago.
The higher profit contribution for the second quarter was mainly from property development projects in China.
Strong sales from its Ascot Park development and the sale of an office block in the Changfeng project contributed to the higher earnings in the quarter.
Revenue for the quarter also jumped 284 per cent to S$363.7 million from the same period last year.
Administrative expenses for the second quarter increased by 46 per cent to S$13.1 million.
This was mainly due to due to higher staff expenses and other administrative expenses.
Despite concerns about potential risks of an asset price bubble, the Group said that it still enjoys healthy sales in its property development projects in Singapore and China.
Looking ahead, the Group said it will continue to source for land for development, and prime its launch-ready projects for sale at the right time.
Source : Channel NewsAsia – 5 Feb 2010