Haw Par Corporation’s FY2020 revenue more than halved y-o-y as a result of the Covid-19 pandemic, falling 54.5% y-o-y to $111.0 million for the year ended Dec 31, 2020.

Meanwhile, the group’s profit after tax fell 34.3% y-o-y to $119.7 million from $182.2 million. 

Haw Par Corporation Limited is a Singapore-based company involved in healthcare, leisure products, property and investment. It is the company responsible for the Tiger Balm ointment, and Kwan Loong medicated oil. 

In addition, the group owns and operates weekend and leisure time destinations, including the now-defunct Underwater World oceanarium attraction in Singapore, and Underwater World Pattaya in Thailand.

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The board has proposed a second and final dividend of 15 cents per ordinary share for FY2020, unchanged from the first and interim dividend called at 1HFY2020, similar to both payouts in FY2019. 

Meanwhile, earnings per share for the FY2020 fell to 54.2 cents from 82.4 cents. 

In results reported Feb 22, revenue from the company’s healthcare segment decreased by 58.5% to $93.0 million as consumer demand for products was severely impacted by movement restrictions and international tourism industry remaining at a standstill.

The drastic drop in demand for healthcare products resulted in lower gross margin mainly due to excess capacity at its manufacturing facilities, says the company. Consequently, the healthcare segment’s operating profit dropped 78.3% y-o-y to $16.2 million. 

Revenue from other segments, which comprise the leisure and property divisions, decreased by 9.8% y-o-y to $18.0 million due mainly to Underwater World Pattaya (UWP) as Thai borders were largely closed to international tourists and domestic travel restrictions from March 2020.

This was partially offset by higher average occupancy at the group’s Singapore properties. Total net operating profit from these segments decreased by 15.5% y-o-y to $9.1 million due to operating loss at UWP. 

Cost of sales fell 40.5% y-o-y to $62.2 million. Distribution and marketing expenses decreased by 54.5% y-o-y to $21.0 million due mainly to lower sales and the curtailment of advertising and promotion activities as markets experienced lockdowns and travel restrictions during the year. 

Cash and cash equivalents increased by 19.1% y-o-y to $554.4 million, due mainly to cash dividends received from strategic investments, proceeds from the net sales and purchase of investments and cash generated from operations, partially offset by dividends paid to shareholders and purchase of property, plant and equipment.

Trade and other receivables decreased by 52.4% y-o-y to $14.4 million, consistent with weaker sales performance. 

Inventories decreased by 23.9% to $15.3 million due mainly to lower production, in line with the low consumer demand. 

Tax recoverable balance as of Dec 31, 2020 is mainly due to estimated tax paid in advance for some overseas subsidiaries in accordance to local tax laws. Property, plant and equipment increased by 15.9% y-o-y to $31.1 million due mainly to purchase of freehold land within the healthcare segment.

Strategic investments decreased by 14.1% y-o-y to $2.3 billion due mainly to lower market valuations as at year end. 

Trade and other payables decreased by 12.4% y-o-y to $56.5 million due mainly to lower trade-related payables and lower employee variable compensation accrued. Borrowings decreased due to full repayment of loan during the financial year.

Two of the group’s non-executive and independent directors also stepped down from their roles after fulfilling the full tenure of nine years. Both Dr Chew Kia Ngee, 75, and Peter Sim Swee Yam, 65, will not be seeking re-election at the forthcoming annual general meeting. 

“The Covid-19 pandemic has disrupted global economic activity with many countries facing resurges in infection and governments reimposing lockdown measures,” says the company. 

On Jan 14, Underwater World, a wholly-owned subsidiary of Haw Par Corporation, pleaded guilty to a charge under Section 12(1) of the Workplace Safety and Health Act (Chapter 354A).

See: Haw Par Corporation declines to comment on Underwater World Singapore's litigation


The now-defunct oceanarium admitted to safety lapses, which came to the fore after one of its veteran divers, Phillip Chan Kum Weng, died in 2016.

The court has since adjourned the case to Feb 25.

Haw Par Corporation, via a filing on SGX, says it will not comment on the press reports, and will only do so after the sentence has been passed.

Shares in Haw Par Corporation closed 41 cents higher, or 3.48% up, at $12.18 on Feb 22.