Hong Lai Huat Group (CTO) H1 2024 earnings summary

Executive summary

• H1 FY2024 net loss narrowed 17% YoY to S$4.359m from S$5.253m; continuing-operations loss was S$3.048m and discontinued-operations loss S$1.311m.

• Proposed disposal of the Cambodian agriculture subsidiaries led to discontinued-operations and held-for-sale presentation; the disposal was approved by shareholders on 20 May 2024.

Financial highlights

• Continuing-operations revenue was S$202k, from Cambodian completed-property sales; discontinued cassava revenue was S$71k, down from S$214k YoY due mainly to lower harvest yield.

• Continuing-operations gross profit was S$101k, with a 50% margin; discontinued crops generated S$15k gross profit and a 21% margin.

• Other income rose to S$853k from S$472k, mainly due to a gain on disposal of motor vehicles.

• Continuing-operations loss before tax was S$3.217m; total loss for the period was S$4.359m versus S$5.253m in restated H1 FY2023.

Outlook and guidance

• On completion of the proposed Cambodian agriculture disposal, the business will exit agriculture; the property division will continue marketing remaining D’Seaview and Royal Platinum units.