SINGAPORE (Feb 1): Property group SingHaiyi reported 3Q19 earnings more than doubled to $4 million from a year ago as cost of sales fell more than revenue. This brings earnings for 1H19 ended Dec to $13 million, 54% lower than a year ago.  

Revenue for 3Q19 came in at $15.8 million from a year ago, a decrease of 62% mainly due to the decrease of revenue recognised for the group’s completed EC project, The Vales and group’s completed private condominium, City Suites.

This was offset by the sales of the group’s completed commercial condominium project, Vietnam Town phase 2 units of $11.9 million.

Cost of sales decreased 76.3% to $8.5 million in line with the decrease in property development income.

Gross profit margin increased by 32.2ppt, attributed mainly to the change in geographical revenue mix as more revenue from property development in US with a higher profit margin was recognised in 3Q19.

Other income increased to $2.9 million in 3Q19 from $0.4 million in 3Q18, mainly due to the forfeiture of non-refundable deposits of $1.8 million, arising from the termination of the bulk sale agreement for the Vietnam Town phase 2 units and the increase in investment income of $1.1 million.

In its outlook, SingHaiyi says it is launching freehold condominiums The Gazania and The Lilium offering 250 and 80 units respectively, by the first half of 2019. Both projects are located near to Bartley MRT station.

Elsewhere in the US, the group in Nov 2018 had terminated the purchase and sale agreement and initial escrow instructions for the sale of 34 Vietnam Town Phase II units as the buyer had failed to timely close the escrow. The real estate market remains reasonably stable but faces potential concerns from rising interest rate.

In the past 12 months, shares in SingHaiyi have fallen by 22% to close at 9.4 cents on Friday.