31st Aug 2018 09:36
LONDON (Alliance News) - Aseana Properties Ltd on Friday said it swung to a loss in the first half of 2018 due to operating losses and financing costs as it continues to dispose of its remaining assets.
In the six months to June 30, the property developer's pretax loss was USD4.1 million, a sharp turn from its GBP240,000 profit the year before.
City International Hospital was the biggest drag on Aseana's profitability, with USD2.1 million in associated operating losses and finance costs. This was followed by an USD800,000 impact from its Four Points hotel and from Harbour Mall Sandakan. Pre-opening losses of USD1.4 million from its RuMa Hotel had a further impact on the company.
Revenue decreased to USD15.9 million from USD17.1 million while cost of sales increased to USD13.5 million from USD11.4 million.
Aseana's property developments are focused in Malaysia and Vietnam, with Malaysia constituting the entirety of its revenue.
"The board and the manager remain committed to ensuring that the remaining assets of the company are realised with optimum values in a timely manner. Although no major asset sales were recorded during the first half of the year, further progress has been made...Nevertheless, the board and the manager remain focused to ensure the group's portfolio progresses with the recovery and growth of the economy in Malaysia and Vietnam," said Aseana Chairman Mohammed Azlan Hashim.
The company has faced difficulty in disposing of a number of its assets due to difficult market conditions. As such, the company provided an updated schedule for when its realisations will be complete.
"While discussions are still on-going for City International Hospital and Seafront Resort and Residential Development, Kota Kinabalu, current market conditions have meant that the company has been unable to achieve its original target of selling by June 2018 and has therefore provided a revised timeline for the sale to take place in the fourth quarter of 2018," said Hashim.
Aseana shares were untraded at USD0.55 on Friday.
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