First Sponsor reported Friday its 2021 net profit rose 17.7 percent on-year to S$121.47 million, largely on contributions from the 60 percent owned The Pinnacle project in Dongguan and a record annual average China property financing loan book.
Revenue for the 12 month period climbed 189 percent on-year to S$589.17 million, the company said in a filing to SGX.
Revenue from the sale of properties climbed 628 percent on-year in 2021 to S$415.1 million, First Sponsor said.
“This was due mainly to revenue recognised in respect of the first handover of six residential apartment blocks of The Pinnacle as well as the handover of the SOHO loft units in Plot F of the Millennium Waterfront project since March 2021,” the company said.
The remaining two fully sold blocks at The Pinnacle and 202 SOHO units are expected to be handed over this year, the filing said.
Hotel operations posted revenue rose 27.8 percent on-year to S$42 million, mainly on a pickup at hotels in China and in Europe on the easing of Covid-related travel and lockdown restrictions.
In addition, the company said it divested a 40.5 percent effective interest in the Wentang Recycling Factory in Dongguan at a premium of 219 percent over cost of 40.3 million yuan, with the deal completed in December.
First Sponsor declared a second interim cash dividend of 2.35 Singapore cents for 2021, in lieu of a final dividend, bringing the year’s total dividend to 3.45 Singapore cents, up 11.3 percent on-year.
Neo Teck Pheng, group CEO of First Sponsor, was generally upbeat on the outlook.
“Despite the negative impact on the hospitality sector brought about by the restrictions and uncertainty caused by the Covid-19 pandemic, the group remains optimistic about the eventual recovery of the European hospitality business in the mid to long term,” Neo said in the statement.
“As such, the group is discussing with its business partners in the Dutch QBN hotel portfolio to increase its current 31.4 percent equity interest,” he said.