Hwa Hong’s revenue plummets 45% to $28m in 2011

As proceeds from its investment securities dropped 37% last year.

According to a financial statement, the group’s revenue decreased by $23.1 million or 45% year on year, from $51.1 million in financial year ended 31 December 2010, to $28.1 million in financial year ended 31 December 2011.

This was mainly due t o:-
a. decrease in proceeds from sale of investment securities amounting to $22 million (FY2011: $12.8 million; FY2010: $34.8 million);
b. decrease in rental income by $ 0.6 million (FY2011: $6.9 million; FY2010: $7.5 million) due to refurbishment of a residential property in the United Kingdom and our warehouse in Paya Lebar;
c. decrease in interest income by $ 3.8 million (FY2011: $3.6 million; FY2010: $7.4 million as an investment security which contributed significantly to interest income was redeemed in 2Q2 009 .

The above decreases were offset by increase in dividend income amounting to $ 3.3 million (FY 2011 : $ 4.1 million; FY2010: $ 0.8 million) due to distribution by a fund in which the Group has a 17.82% interest.

The decrease in revenue of $4.7 million in fourth quarter ended 31 December 2011 over the same quarter in 2010 was due mainly to decrease in proceeds from sale of investments (4Q2011: $1.2 million; 4Q2010 : $5.8 million).