SINGAPORE (Aug 14): China property group Pan Hong Holdings has swung back into the black with earnings of RMB106.4 million ($21 million) in 1Q20, compared to a loss of RMB0.9 million in 1Q19.

This came on the back of a significant increase in revenue to RMB518.6 million from just RMB8.9 million a year ago, mainly due to more transfer of control of residential units of Pan Hong Run Yuan Phase 2 to buyers.

With cost of sales also surging to RMB352 million from RMB6.7 million last year, 1Q20 gross profit came in at RMB166.5 million versus RMB2.3 million in the previous year.

Other income and other gains fell by 17.1% to RMB 3.4 million due to a decrease in interest income from various other investments and structured bank balances.

Selling and distribution expenses increased 312% to RMB 9.7 million while administrative expenses fell 27.6% to RMB 2.9 million.

As at end June, cash and cash equivalents stood at RMB170.5 million.

Looking ahead, Pan Hong says it will continue to work on the sales and construction of its existing projects. It is also exploring suitable business opportunities to diversify its core business as it believes that this will provide opportunities to expand its income sources.

Shares in Pan Hong closed at 8.5 cents on Wednesday.