Far East Orchard profits down 74.2% to $3.15m in Q3

Its assets in Australia performed poorly and dragged sales down.

Hospitality firm Far East Orchard Limited's (FEOR) profits crashed 74.2% YoY from $12.21m to $3.15m in Q3.

According to its financial statement, sales were 20.7% YoY lower to $36.3m due to the completion of onerous lease agreements in Australia and New Zealand.

Its two assets in Perth, Australia also performed poorly. FEOR said a "challenging operating environment" hampered earnings from the assets.

FEOR's share of profits of joint ventures decreased mainly due to the absence of the progressive recognition of profits in Q3 in 2016 from the sale of units in a joint venture property development project, RiverTrees Residences, which obtained its Temporary Occupation Permit (TOP) in May 2017.