27th Apr 2018 09:35
LONDON (Alliance News) - Aseana Properties Ltd on Friday swung to a pretax loss for 2017 following the sale of its land plots in Vietnam and a hotel in Malaysia.
The property development company reported a pretax loss of USD5.0 million for 2017, compared with a pretax profit of USD16.2 million a year earlier. Revenue dropped significantly to USD19.1 million from USD112.5 million.
The fall in revenue came after the company sold two plots of land at International Healthcare Park in Vietnam, which generated revenue of USD13.1 million the prior year. It also disposed Aloft Kuala Lumpur Sentral hotel in Malaysia, which brought revenue of USD104.3 million in 2016.
Although administrative expenses were reduced slightly year-on-year to USD927,000 from USD1.5 million, marketing fees grew significantly to USD496,000 from USD99,000.
"Despite improvements shown in both the Malaysian and Vietnamese economies, Aseana Properties is still facing challenges with its investments in both these markets," said Chairman Mohammed Hashim.
"With the extension of life of the company, the board and the manager will focus on disposing of its remaining assets in an orderly and timely manner whilst achieving optimum value for its shareholder," Hashim added.
Shares in Aseana were down 3.7% at 0.52 pence per share on Friday.
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