SINGAPORE (Aug 10): Property group Singapore eDevelopment reported half year losses widened to $6.3 million from $5.3 million a year ago.

Revenue for the 1H17 ended June surged to $6.2 million from $0.9 million but cost of sales rose more steeply to $5.2 million. This resulted in gross profit of $988,000 from $179,000 a year ago.

Administrative expenses increased to $4.2 million in 1H17 from $3.0 million in 1H16 mainly due to additional expenses of $1.1 million associated with the network marketing business which commenced in 1H17.

Other expenses amounted to $3.1 million comprising $2.5 million in unrealised foreign exchange losses arising from the depreciation of the US dollar in 1H17 on US dollar-based assets relating to the group’s US property development operations and $0.6 million of withholding tax.

In 1H2017, SeD’s property development business’ home incubation delivered two units in El Tesoro, Houston, Texas, US to buyers in 1H17. Accordingly, the group recognised $0.5 million in revenue and $0.2 million in gross profit in 1H17. The remaining three units are expected to be sold in 2H17.

Ballenger Run, the group’s US project in Frederick County, Maryland, generated $2.1 million in revenue and $0.4 million in gross profit in 1H17 from the sale of 13 model lots.

A townhouse located in Washington, DC, US was sold for $1.1 million in February 2017 and reported a gross loss $0.2 million due to capitalised interest expense.

The group also acquired a 53% equity stake in US company, iGalen International Inc to conduct the distribution of dietary and health supplements through network marketing. Sales income and gross profit in 1H17 amounted to $2.5 million and $0.5 million.

As part of a strategic shift to diversify and develop new revenue streams, SeD received shareholders’ approval on Jan 24 to diversify into biomedical science, healthcare and biotechnology industries.

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