GuocoLand reveals $319.6m revenue for H1

Gross profit margin remains stable at about 30%.

Singapore Exchange-listed real estate developer GuocoLand recorded $319.6m in revenue in H1 2021, significantly lower than the $572.1m figure posted a year before, the company announced.

The drop was primarily driven by lower progressive recognition of sales from Singapore residential projects, GuocoLand said.

Revenue from GuocoLand’s investment properties remained stable in H1 2021 compared to the previous corresponding period. In contrast, revenue from the hotel business plummeted by 75% amidst the COVID-19 pandemic due to global travel restrictions and hotel accommodation demand drops.

Meanwhile, the gross profit margin was stable at approximately 30%.

Profit attributable to shareholders was at $22.9m, lower than the $74.5m figure from a year ago, which was caused by a higher tax expense of $31.9m in H1 2021 driven by taxes related to the disposal of the cultural building within the Guoco Changfeng City project in Shanghai, China.

“Higher tax expenses were partially offset by a 58% increase in other income to $25.2m partly due to the fair value gain on derivative financial instruments and the completion of the disposal of the cultural building within the Guoco Changfeng City project,” GuocoLand said. “Other expenses decreased by 93% to $1.1m due to the fair value gain on derivative financial instruments, compared to a fair value loss in the previous corresponding period.”

Finance costs dropped by 17% to $42.8m because of lower borrowing costs, GuocoLand added.