Group expects red ink of S$92 million to S$106 million from investee firm it owns 25.2% of
PROPERTY developer OUE expects to record a net loss for the first six months ended Jun 30, 2024, reversing a net profit of S$40.2 million in the same period last year.
The group attributed its performance to estimated losses from an investee company which OUE owns 25.2 per cent of. Its business in China was adversely affected by the prevailing slowdown in the property market and the current economic environment there, said OUE in a bourse filing on Friday (Jul 19).
The investee company, Gemdale Properties and Investment Corporation (GPI), announced the same day that it is expecting to record a net loss of around 2 to 2.3 billion yuan (S$370 million to S$425.5 million) for H1 FY2024.
This is due to a share of loss from joint ventures, as well as an increase in impairment losses for properties under development during the period, said GPI.
OUE’s share of results from GPI is therefore predicted to be a loss ranging from S$92 million to S$106 million, compared to a S$19 million profit in H1 FY2023.
But the losses are non-cash in nature and there is no material impact on OUE’s operational cash flows and corporate funding requirements, it said.
The group’s unaudited financial results for the first half of FY2024 will be released on or before Aug 14.
OUE shares closed at S$1.18 on Friday, down 0.8 per cent or S$0.01, before the announcement.
