TEE International: Fiscal 1Q net loss more than quadruples on TEE Land expenses

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TEE International reported on Friday that its net loss attributable to owners more than quadrupled to S$3.85 million in the fiscal first quarter, from S$918,00 in the year-earlier period amid expenses related to TEE Land.

Revenue for the fiscal first quarter ended 31 August rose 11.9 percent on-year to S$78.47 million, it said in a filing to SGX after the market close on Friday. Tee International attributed the increase mainly to the inclusion of revenue from the waste and recycling management subsidiaries acquired in December 2017.

The cost of sales increased 14.2 percent on-year in the quarter to S$72.02 million

Selling and distribution expenses for the fiscal first quarter decreased by 35.7 percent on-year to S$1.27 million, mainly on the absence of a year-earlier one-off promotional expense for a completed property held for sale in the year-ago quarter, TEE International said.

Administrative expenses increased 20.9 percent on-year in the quarter to S$5.86 million, mainly on expenses by the waste and recycling management subsidiaries, it said.

Other operating expenses for the quarter surged to S$1.65 million from S$148,000 in the year-ago quarter, mainly on an option fee forfeited for the aborted purchase of land by TEE Land and an unrealized foreign-exchange loss in the quarter ended 31 August, it said.

The share of results of associates and joint venture for the fiscal first quarter swung to a loss of S$390,000 from a year-earlier gain of S$911,000, TEE International said. That was mainly due to the share of losses from TEE Land’s associated companies, it said.

In its outlook, TEE International said the business landscape was “challenging and uncertain.”

Its engineering business would stay focused on delivering projects and initiatives that could value-add existing and future projects, the company said. It noted the outstanding order book was S$304 million.

“The real estate business remains cautious due to recent cooling measures in Singapore. TEE Land will continue to actively realize value in its investments,” TEE Investments said. “The infrastructure business continues to expand steadily while building up its capabilities through
strategic investments and partnerships.”

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