SINGAPORE (Feb 12): OUE Lippo Healthcare further sunk into the red in FY17 with a loss of $90.7 million, 18% down from its loss of $76.8 million the previous year on lower revenue and higher costs of sales.

Revenue for the full year declined 11.2% to $43.6 million, due mainly to lower rental contributions from investment properties in Australia. This was however partially offset by higher contributions from operating Wuxi New District Phoenix Hospital, while income from the group’s nursing facilities In Japan remained stable.   

A higher operating loss of $62.7 million was reported in comparison to $58 million in FY16, mainly due to the absence of a one-off net gain on deconsolidating of subsidiaries recorded in the previous year, which was related to deconsolidation of assets & liabilities related to the group’s IHC subsidiaries.

Meanwhile, administrative expenses grew 36.9% to $18.3 million from $13.4 million a year ago, due to higher legal and professional fees incurred from corporate activities and ongoing litigations.

In its outlook, OUE Lippo highlights its recent acquisition by Japan’s Itochu Corporation, and says the share placement taking place this month will strengthen the group’s financial position while putting it in good stead to execute its business plans ahead.

See: Japan's Itochu acquires 25.3% stake in OUE Lippo Healthcare for $79 mil

Aside from strengthening its presence in China while also expanding into new markets in Southeast Asia, OUE Lippo says it also plans to leverage on the strengths of its major shareholders, including OUE and Itochu, and forge partnerships with local or industry leaders, such as China Merchants Group and SK Telecom.

Shares in OUE Lippo closed 2.2% lower at 13 cents on Monday.