OUE Limited has guided for a loss for the 1HFY2024 ended June 30 compared to earnings of $40.2 million in the corresponding period the year before.
The loss is mainly attributed to the estimated losses from Gemdale Properties and Investment Corporation Limited (GPI), an investee company that is 25.2%-owned by OUE LJ3 .
According to OUE, GPI’s business in China was “adversely impacted” by the slow-down in the country’s property sector. Its current economic environment was also another factor.
GPI also announced that it expects to record losses in the 1HFY2024.
As such, OUE is expecting to report a loss of $92 million to $106 million from its share of results from GPI, compared to a share of profit of $19 million in 1HFY2023.
In its July 19 statement, OUE says the loss attributable to share of results of equity-accounted investees is non-cash in nature and there is no material impact on its operational cashflows and corporate funding requirements.
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OUE will release its results for the 1HFY2024 on or before Aug 14.
Shares in OUE closed 1 cent lower or 0.84% down at $1.18 on July 19.
