Lum Chang's net profit dips 1% to $29.5m

This is despite a whopping 36% revenue increase.

Despite a posting a 36% spike in revenue, construction group Lum Chang Holdings registered a 1% decline in net profit for the year ending in June.

In a statement, the group said the spike in revenue is due to the commencement of revenue recognition for two construction projects.

"No revenue was recognized for these projects in the previous year as the construction progress then, had not yet reached the stage where revenue recognition could commence," Lum Chang said.

Alongside the revenue increase is the swelling of the cost of sales at 37%, from $268.3 million last year to $368.8 million.

The group also reported a 29% slip in its other income to $2.13 million.

Administrative and finance expenses also inflated at 18% and 82%, respectively.