The decrease was however partially offset by the increase in revenue from property financing, hotel operations and rental income from investment properties of $18.1 million, $8.5 million and $0.1 million respectively.
The significant increase mainly arose from the recognition of net penalty interest income of $5.1 million on the receipt of net auction proceeds by the court in June linked to the successful enforcement on two of the Case 2 defaulted loans.
Revenue from hotel operations was higher due mainly to a full quarter contribution from the 24.7%-owned Hilton Rotterdam hotel which was leased by the group since February, as well as the Wenjiang hotspring which started operations in October 2017.
However, cost of sales fell 48.6% to $16.2 million while net other expenses fell 45.8% to $3.3 million.
In its outlook, First Sponsor says 2018 looks set to be the record year for the group’s China property financing business segment. Meanwhile, the group’s efforts in building up a strong recurrent income property holding portfolio is shaping up well.
First Sponsor’s board has approved an interim tax-exempt (one-tier) cash dividend of 1 cent per share.
As at 12.01pm, shares in First Sponsor are trading 2 cents higher ar $1.29.
