GuocoLand's net profit down 8% to $39m in Q2

A steep revenue crash is to blame.

Mainboard-listed property developer GuocoLand reported that its attributable profit fell to $39 million for the second quarter of its financial year, a drop from $42.4 million in the same period last year.

GuocoLand blamed the contraction on its sharply lower revenue. The group’s top line shrank 33% to $239.5 million, while gross profit was halved to $60.9 million.

The drop in performance was due to the sale of an office tower in Shanghai Guoson Centre in the previous corresponding quarter. GuocoLand said that the lower revenue from China was partially offset by revenue recognised from DC Residency in Malaysia as Temporary Occupation Permit for the project was obtained in November 2015.

“With a volatile global economic environment, the Group foresees a challenging year ahead. The Group will continue to focus on sales and leasing of its current projects while being watchful for investment opportunities,” GuocoLand said.