PRESS RELEASE
For Immediate Release
Ho Bee Group posts a net profit of S$138 m for the nine months ended 30 September 2011
SINGAPORE, 9 November 2011 - Mainboard-listed property group
Ho Bee Investment Ltd today announced a net profit after tax
and minority interests of S$138 million for the nine months
ended 30 September 2011, 34% lower than the previous
corresponding period.
The drop in attributable profits was due to the 42% decrease
in Group turnover from S$465 million to S$272 million, as a
result of the lower revenue recognition from development
properties.
Earnings per share for the nine months period was at 18.9
cents while total shareholders' fund as at 30 September 2011
amounted to S$1.58 billion, representing a net asset value of
S$2.22 per share. Net gearing decreased from 0.36 times as at
the end of last year to 0.25 times.
For the current third quarter, profit attributable to
shareholders decreased 16% from S$38.8 million in the
previous year to S$32.6 million, yielding 4.5 cents per
share. Group turnover was
43% lower, from S$98.9 million to S$56 million, due to lower
revenue recognition from
development properties.
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Property Development
The Group's revenue from property development for the third
quarter of 2011 declined 45% from the corresponding period
last year to S$49.9 million. For the nine-month period,
revenue decreased 43% from S$441.1 million in the previous
year to S$252.3 million. This was mainly attributed to the
higher revenue recognition for last year with the completion
of the Turquoise residential project at Sentosa Cove.
To-date, the Group has sold 94% out of the 115 strata units
in the One Pemimpin industrial project. In accordance with
Interpretation of Financial Reporting Standards, INT FRS 115,
the revenue for the sale of units in the One Pemimpin
industrial project will only be recognised upon completion of
construction, which is expected in the middle of next
year.
Property Investment
Turnover for property investment for the third quarter and
first nine months of 2011 decreased by 42% and 30% to S$3.9
million and S$13.6 million respectively, compared to the same
period last year. This was due primarily to the sale of
industrial buildings, TG Building and Platinum 28 and several
floors of office space at Samsung Hub during the second half
of 2010 and first nine months of 2011. These sales were
undertaken to rationalise the Group's investment property
portfolio following our development of 1.2 million sq ft of
office space at One-North.
Business Outlook
The uncertainties in the global economy caused by the
Euro-zone debt crisis have dampened the Singapore property
market. Demand for high-end residential properties is
expected to remain sluggish.
Notwithstanding the above, Mr Chua Thian Poh, Chairman
& CEO of Ho Bee Group said that the Group's revenue
for the last quarter of the year would be underpinned by the
progressive recognition of income from the residential
projects that had been sold and earnings are expected to
remain positive.
--ends-
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About Ho Bee Investment Ltd
Ho Bee Investment Ltd is listed on the mainboard of the
Singapore Exchange since 1999. The real estate development
and investment company has a portfolio that covers many
quality residential, commercial and high-tech industrial
projects since its establishment in 1987.
It is the leading developer of luxury homes in the exclusive
residential enclave of Sentosa Cove. Its treasury of
residences in Sentosa Cove includes condominiums like The
Berth, The Coast, Turquoise and Seascape and bungalow
developments on Coral and Paradise Islands.
Some of the properties that are currently under development
by Ho Bee include:
• Trilight, a 205-unit condominium in Newton Road;
• Parvis, a 248-unit condominium in Holland Hill (50:50 joint
venture with MCL Land);
• Pinnacle Collection, a 302-unit condominium in Sentosa Cove
(35:65 joint venture with
IOI Land);
• The Metropolis, a 1.2 million sq ft commercial development
in One-North; and
• One Pemimpin, a 115-unit high-tech industrial building in
Pemimpin Drive.
Headquartered in Singapore, Ho Bee has also diversified its
real estate business overseas with a focus in the major
cities of London, Shanghai and Tangshan.
More information about the company can be found on the
company's website at www.hobee.com.
Issued by: Ho Bee Investment Ltd (Co. Registration No.
198702381M) Media & Analysts Contact:
Desmond Woon
Tel: (+65) 68422100
Email: desmond@hobee.com
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