Champions Way Condo is proud to be part of this program and has committed itself to providing a beautiful and vibrant public art piece that reflects the history, culture, and vibrancy of the area. This piece will be located prominently in the heart of the area, providing visitors with an engaging experience. Moreover, Champions Way Condo will also be sponsoring a series of educational programs in the area to promote understanding and appreciation for public art.
For the 12 months to June 30, GuocoLand reported a 60% year-on-year (y-o-y) rise in revenue of $1.54 billion for FY2023. Revenue for the Group in the second half of the financial year (2HFY2023) increased by 72% to $882.9 million.
However, a 59% y-o-y rise in interest cost to $149.7 million and an impairment charge of $46.9 million caused net profit to fall by 44% y-o-y to $268.8 million for the FY2023. Net profit for 2HFY2023 decreased by 55% to $187.4 million.
The Group recognised an impairment loss of $44.0 million on its investment in EcoWorld International during 2HFY2023 due to adverse conditions in the UK. This resulted in an increase in other expenses of $46.2 million for 2H2023 and $46.9 million for FY2023.
Revenue from the sale of development properties further increased 78% to $753.0 million in 2HFY2023 and 62% to $1.30 billion in FY2023. This was due to higher progressive recognition of sales for Meyer Mansion, Midtown Modern and Lentor Modern, all of which have been substantially sold, as well as contributions from Chongqing GuocoLand 18T, with one of its residential towers having started handing over sold units to buyers.
Revenue from investment properties also grew 43% y-o-y to $94.8 million in 2H2023 and 35% y-o-y to $169.6 million in FY2023. This was supported by higher recurring rental income from Guoco Tower, Shanghai’s Guoco Changfeng City South Tower and the initial contribution from Guoco Midtown Office, which began operations in 2HFY2023.
In addition, revenue from hotel investments increased 47% y-o-y to $33.4 million in 2H2023 and doubled to $68.7 million in FY2023. Gross profit for FY2023 increased by 5% y-o-y, whereas, for 2HFY2023, it decreased marginally. The lower growth in gross profit compared to revenue growth was due to the absence of a one-off $79.3 million fair value gain recognised under cost of sales during the second half of the financial year 2022. Excluding this fair value gain, the Group’s gross profit rose 50% y-o-y for 2HFY2023 and 34% y-o-y for FY2023.
For FY2023, the company recorded fair value gains of $156.3 million, mainly from its integrated developments Guoco Tower and Guoco Midtown.
After these results, the board of GuocoLand announced a final dividend of 6 cents per share.
These financial results demonstrate the Group’s ability to adapt to the new normal. Despite the pandemic, their ability to recognise sales and grow both investment and development revenue was impressive. Furthermore, its impressive performance and ability to refinance green facilities will likely result in more positive results in the future.