Blame it on weaker revenue.
Transcorp booked a net loss of about $1.3m in FY15, a dramatic crash from FY14 when it raked in a profit of about $9.7m.
In the company’s annual report, Transcorp Executive Chairman Chu Wan Zhen asserted that the profit decline was on back of falling revenue.
Following the disposal of Nippon Golf, Transview Lifestyle, and Transview Golf, which were mainly in the business of wholesale of golf equipment and related products, to Leonian Singapore in March 2014, Transcorp’s $1.1m FY15 revenue comprised mainly of rental and interest income. Rental income, derived from the company’s two investment properties in Singapore and Malaysia, stood at $795,521. Meanwhile, interest income was derived from Transcorp’s loan tointerest income.
Chu added that in a bid to enhance value for shareholders, the company ventured into the automobile sales sector. It inked a $20m sales and purchase agreement with Regal Motors for 5,309,735 ordinary shares, which represents a 88.5% stake in Regal Motors. Transcorp expects the venture to contribute positively to the company’s earnings.
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