Wing Tai Holdings W05 0.00% has announced earnings of $13.3 million for its FY2023 ended June 30, down 91% compared to its earnings of $140.2 million in FY2022.

The real estate developer reported a loss of $49.9 million for the second half of the financial year, compared to earnings of $86.4 million for its 2HFY2022.

Consequently, earnings per share for the full-year period sunk to 0.87 cents, down from 16.64 cents per share in FY2022.

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The group’s share of associated and joint venture companies in FY2023 came in at a loss of $10.4 million compared to a profit of S$112.2 million in the previous year. This was primarily the consequence of its share of the results of Wing Tai Properties Limited in Hong Kong, which saw lower operating profit and higher fair value losses on investment properties during the period, and was partially offset by the higher contributions from Uniqlo in Singapore and Malaysia.

Excluding the fair value losses on its investment properties, the underlying net profit of Wing Tai came in at $131.3 million in FY2023, 10% lower than the $145.7 million recorded in the previous year.

Wing Tai’s revenue in FY2023 stood at $476.3 million, 7% lower y-o-y mainly due to lower contribution from development properties. Meanwhile, revenue for the period was largely attributable to the progressive sales recognised from The M at Middle Road and the last unit sold in Le Nouvel Ardmore in Singapore.

Its cost of sales also dipped by 5% y-o-y to $333.8 million for FY2023, while gross profit came in 13% lower y-o-y at $142.5 million.

The group’s cash and cash equivalents stood at $402.1 million as at June 30.

Wing Tai has declared a final dividend of 3 cents per share and a special dividend of 2 cents per share, totalling 5 cents per share and representing a dividend yield of 3.8%.

In its outlook, the group says that the Singapore economy continues to face mounting challenges, with the private residential property price index declining by 0.2% on a q-o-q basis in the second quarter of 2023, as compared to the 3.3% increase in the previous quarter.

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Wing Tai says it will continue to monitor the property market closely and will release more residential units for sale at “appropriate times”.

Shares in Wing Tai closed 1 cent or 0.75 cents down at $1.32 on Aug 25.

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