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Gross profit fell 33% y-o-y to $223.1 million. Profit from operations fell 25% y-o-y to $197.0 million. Share of results of associates fell 20% y-o-y to $38.5 million due to poorer performance by the hotels, and the absence of share of profits from AHPL. Due to the acquisition of AHPL in April 2019, the group has recorded a fair value uplift of $582.4 million on property, plant and equipment, resulting in a higher depreciation charge over the useful lives of the property, plant and equipment. The loss on disposal of property, plant and equipment mainly arose from the fixed asset disposal by Parkroyal Collection Marina Bay during their renovation this year.
SEE:UIC 2Q earnings surge to $409 mil on one-off gain
Cash and cash equivalents as at Dec 31, 2020, stood at $178.6 million. Amid the gradual improvement of the local economy, UIC says it is “cautiously optimistic” about the office and retail sectors amid returning employees to office workspaces and higher shopper traffic. It adds that its hotels expect “significant revenue challenges” due to the hospitality industry being continually affected by the travel restrictions and lockdowns in certain countries. The residential sales market is expected to remain “resilient” due to the lack of announcements on cooling measures by the government. Shares in UIC closed 3 cents lower or 1.3% down at $2.28 on Feb 23.