TEE Land reports fiscal 1Q net loss narrowed

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TEE Land reported Monday its fiscal first quarter net loss narrowed to S$1.69 million from S$3.08 million in the year-ago quarter, on a higher gross margin.

Revenue for the quarter ended 31 August dropped 39.4 percent on-year to S$20.70 million, due to the sale of only one unit at The Peak @ Cairnhill development during the quarter, compared with nine sold in the year-ago period, the company said in a filing to SGX.

The gross profit margin for the quarter rose to 19.2 percent, compared with 8.6 percent in the year-ago quarter, mainly as the year-ago sale of nine The Peak @ Cairnhill units were at a written-down value, with no profit, TEE Land said.

Cost of sales declined 46.5 percent on-year to S$16.72 million, TEE Land said.

In addition, other operating income rose 30 percent on-year in the quarter to S$698,000, mainly on forfeited deposits for aborted property sales, the filing said.

In its outlook, TEE Land said global economic uncertainty was likely to affect the company’s performance.

“In Singapore, the operating environment for the residential market is expected to remain challenging with the additional cooling measures implemented in July 2018,” the company said, adding its overseas performance was likely to be affected by local economic developments and foreign-exchange fluctuations.

“Moving forward, the group will take a cautious approach when seeking opportunities to acquire new land sites and in making any investments. It will focus on improving its operations and sales, as well as realising value in its investments,” TEE Land said.

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