Aspial's losses up 3% to $6.5m in Q2

The group expects to be profitable despite the drop in revenue and sales.

Jewellery company Aspial Corporation (Aspial) loses it shine after its net loss grew larger by 3% YoY from $6.3m to $6.5m.

According to the company's financial statement, revenue fell 29.5% YoY from $104.6m to $43.7m in Q2.

For H1, net loss narrowed down from $3.3m to $205,000 as the company makes progress in its real estate arm's overseas property sales and construction.

H1 revenue was dragged 10% to $245.5m, no thanks to lower sales from its jewellery segment.

Revenue from Aspial's real estate business fell by 20% from $137.1m to $97.4m. Progress recognition of sales from CityGate and final recognition of sales from Waterfront@Faber contributed to the revenue.

"Although the Group has made good progress in the sales and construction of its overseas projects, unlike in Singapore, it cannot progressively recognise the revenue as the completed contract method in accounting is adopted for these projects," Aspial said.

Financial service revenue hiked by 22.4% to $93.4m, caused by higher interest income and sales from the retail and trade of jewellery and watches.

Ongoing consolidation of retail network and weak consumer sentiment affected the Jewellery business, causing a revenue drop from $66.4m to $58.4m.

Aspial expects CityGate to contribute to revenue and profit as sales are still being recorded for the remaining commercial units and construction progress.

The company expects to recognise revenue and profit from its Australian projects. As of the period, it aims to complete 2 out of 6 stages of its Australia 108 and all stages for Avant in 2018.

It will also focus on the sale of Nova City, Cairns and the launch of Albert Street project in Brisbane. Refurbishment of 9 properties in Penang was also recently completed.

Aspial expects to remain profitable for the year.