Chip Eng Seng Corporation has reported narrower losses of $31.6 million for its 2HFY2021 ended Dec 2021, 44.3% lower versus the year earlier period red ink of $56.7 million.
Revenue in the same period increased by 28.2% y-o-y to $493 million, led by higher contribution from its construction, hospitality and education divisions, although there was lower contribution from property development.
A key reason for the losses was from a $14.4 million impairment recognized for its education joint venture in China, which suffered together with the regulatory measures curbing the overall tuition industry.
On the other hand, Chip Eng Seng’s other education ventures enjoyed higher revenue.
For the whole of FY2021, the company reported losses of $31.5 million, reduced from losses of $81.1 million incurred for FY2020.
Despite the losses, Chip Eng Seng plans to pay a first and final dividend of two cents per share – same as that paid for FY2020.
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As at Dec 31 2021, the company’s net asset value was 96.78 cents, reduced from 103.38 cents as at Dec 20 2020.
Chip Eng Seng shares closed Feb 16 at 44 cents, unchanged for the day and up 4.76% year to date.
