Property developer Sim Lian Group has reported a 71 percent year-on-year slump in net profit to $68.8 million for the financial year ended 30 June 2016.
The group’s revenue during the period also fell by 52 percent to $570.9 million, from $1.193 billion previously.
Its property development division accounted for $86.6 million of total revenue for FY2016, down by 91 percent from the $914.3 million reported in FY2015. The group attributed the decline to lower contributions from its development property that was completed in February last year.
However, contributions from Sim Lian’s construction division soared by 88 percent to $430 million, due to an increase in percentage of work done in FY2016.
Contract costs incurred by the group declined by 52 percent to $434 million from $906.1 million previously. The drop in contract costs was in tandem with the revenue fall.
During the period under review, the group posted a foreign exchange loss of $8.2 million, due primarily to the revaluation of intercompany balances that are not denominated in the functional currency of the respective subsidiaries.
With this, Sim Lian has proposed a first and final dividend of 1.5 Singapore cents, down from the 7.28 Singapore cents it declared last year.
“With the property cooling and loan restriction measures still in effect since June 2013, and the expected global slow growth, the group expects the operating environment for the property market to continue to be challenging,” said the group in an SGX filing.