Cost of sales decreased by 23.6% to $73.1 million for FY18 from $95.7 million for FY17 due to lower sub-contracting costs for specialised works; the decrease in the cost of construction materials due to lesser utilisation of materials; and the decrease in labour costs.
Other losses increased by $2.3 million to $2.7 million was largely attributable to an increase in fair value loss of $1.7 million arising from the revaluation of some of the investment properties; and an increase in loss from foreign exchange of $0.6 million resulting mainly from the weakening of the Australian dollar against the Singapore dollar.
Share of profit of joint ventures decreased to $57,000 from $1.99 million due mainly to the decrease in share of profit of $1.8 million from Lakehomes, the developer for the LakeLife Executive Condominium, based on the recognition of profits from the few remaining units of the development which were handed over during FY18.
Share of loss of associated companies was due mainly to the operating expenses incurred by the group’s 22.5% held associated company, Chong Kuo Development, and decrease in share of profit of the group’s 25% held associated company, USB Holdings, during FY18.
As at Dec 31 2018, OKP’s net tangible assets (NTA) stood at $121.8 million while NTA per share was 39.49 cents. Free cash and cash equivalents stood at $69.2 million.
In its outlook, group MD Or Toh Wat says construction of the local residential developments at Chong Kuo Road and Phoenix Heights are progressing smoothly. The group will also be launching The Essence, a 84-unit condominium along Chong Kuo Road, in March. Meanwhile, its 79-unit residential project at Phoenix Heights in Bukit Panjang has received the necessary regulatory approvals including the grant of a fresh 99-year lease.
Shares in OKP closed at 20 cents on Wednesday.
