SINGAPORE (Feb 8): First Sponsor property group reported a 41.5% fall in 4Q17 earnings to $42.7 million from $72.9 million a year ago.

The decrease came on the back of higher cost of sales and other expenses as well as absence of other gains of $98.8 million in 4Q16.

For the full FY17, earnings came in 21.9% lower at $88.3 million.

In 4Q17, revenue surged more than seven times to $180.3 million from $23.7 a year ago due mainly to higher revenue from sale of properties, property financing and hotel operations.

Revenue from sale of properties rose by $128.8 million to $141 million in 4Q17 mainly due to the higher number of units in the Millennium Waterfront project being handed over.

Revenue from hotel operations increased by $4.3 million to $5.4 million in 4Q17 due to full quarter’s revenue contribution from the Crowne Plaza Chengdu Wenjiang and Holiday Inn Express Chengdu Wenjiang Hotspring hotels which started operations in December 2016.

Revenue from property financing increased by $24.0 million to $30.7 million in 4Q17.

Cost of sales increased more than trebled to $105.1 million.

Gross profit came in at $75.2 million.

In 4Q17, the group recorded other expenses of $11.4 million mainly from impairment of property, plant and equipment of $9.3 million.

In its outlook, First Sponsor expects to recognise a substantial part of its profit from its Chengdu Millennium Waterfront project in China, given the complete sellout of all the residential units in 2017.

The group remains confident of the Dutch residential market and will be pursuing development sales of the units in the residential tower.

Shares in First Sponsor closed at $1.38 on Wednesday.