GuocoLand Q3 net profit nearly doubles to S$9.5m on China devt projects

GuocoLand said its net profit almost doubled on year to S$9.5 million for the third quarter ended March 31.

But its revenue fell 15 per cent to S$107.6 million compared to the same period last year.

The group said the higher profit contribution was mainly from property development projects in China.

As such, its income tax expenses surged from S$800,000 to S$6 million.

Administrative expenses for the third quarter increased by 62 per cent to S$11.4 million.

This was mainly due to increased staff and other administrative expenses for its operations in China.

GuocoLand said as the global economies continued to improve, strong momentum in residential property sales was observed, especially in Singapore and China.

This has prompted some governments to introduce measures to rein in speculation and prevent property bubbles from forming.

The group said it will continue to monitor its markets and time the launches of its development projects in line with market demand.

Barring unforeseen circumstances, it expects to report better results for the year.

Meanwhile, GuocoLand said the legal case for its unit, GuocoLand China’s, acquisition of the Dongzhimen project in Beijing is still pending hearing and adjudication before the Chinese courts.

GuocoLand China has taken various legal actions to defend and protect its 90 per cent interest in the project.

Source : Channel NewsAsia – 23 Apr 2010

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