{"id":120036,"date":"2021-01-11T03:23:58","date_gmt":"2021-01-10T20:23:58","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/chip-eng-seng-warns-of-a-net-loss-for-fy2020-due-to-covid-19\/"},"modified":"2021-02-02T17:52:42","modified_gmt":"2021-02-02T10:52:42","slug":"chip-eng-seng-warns-of-a-net-loss-for-fy2020-due-to-covid-19","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/chip-eng-seng-warns-of-a-net-loss-for-fy2020-due-to-covid-19\/","title":{"rendered":"Chip Eng Seng warns of a net loss for FY2020 due to COVID-19"},"content":{"rendered":"


\nChip Eng Seng warns of a net loss for FY2020 due to COVID-19Closure of construction sites for several months in FY2020 have expectedly impacted the\u00a0on-going developments\u2019\u00a0construction milestones, and in turn\u00a0affected revenue recognition as well as progressive payments from property buyers.
\nChip Eng Seng expects to report a net loss for FY2020 compared to its $32.6 million net profit for FY2019, due to the COVID-19 pandemic\u2019s adverse impact on the group\u2019s businesses.
\nIn a profit warning issued on Monday (11 January), the group revealed that it expects the net loss for the whole FY2020 to be wider than the $25.7 million net loss reported for the first half of 2020.
\nFor its property segment, the group\u2019s on-going development projects Grandeur Park Residences, Parc Komo, Kopar at Newton and Park Colonial failed to achieve their construction milestone due to the closure of their construction sites for several months in FY2020. This affected revenue recognition as well as progressive payments from property buyers.
\n\u201cWhile construction works for Kopar at Newton commenced after the end of the circuit breaker period, the construction progress was very much in the initial stages. Accordingly, there was negligible revenue recognition for this development project in FY2020,\u201d it said.
\nRecommended article:\u00a04 Financial Tips for Managing Your Property Amid the COVID-19 Crisis
\nDespite this, the group still expects to meet the stipulated deadlines for completing and delivering its development projects since it has built sufficient buffer into its project timelines.
\nRevenue recognition from Chip Eng Seng\u2019s construction segment has also been adversely affected due to delays in project schedules as well as increased project costs following the stoppage and subsequent slow resumption of work.
\nThe order book of its construction business segment stood at around $1.3 billion as at end-2020.
\n\u201cThe group expects that its construction business segment will continue to face a challenging landscape in the near-term as profit margins (if any) will remain slim due to increased costs presented by the shortage of manpower and compliance requirements to maintain safe management measures at the work sites,\u201d it said.
\n\u201cAny resurgence of rampant COVID-19 infections in the foreign worker dormitories in Singapore as well as disruptions in the global supply chain for raw materials will also severely impact this business segment.\u201d\u00a0
\nFor its hospitality segment, the group said its hotels in Singapore, Maldives and Australia have yet to witness a significant recovery in occupancy rates and revenue due to stringent travel restrictions and low demand for international travel.
\nSuggested read:\u00a0Why More Homeowners Are Refinancing Now, Especially Thanks To COVID-19 Property Reliefs
\n\u201cThe adverse impact of the COVID-19 pandemic on the group\u2019s hotel operations has also affected the valuation of the group\u2019s hotel properties. Consequently, significant impairment losses will be recorded in the group\u2019s consolidated financial statements for FY2020 with respect to its hotel properties.\u201d\u00a0
\nFor its education segment, the pandemic has partly delayed the licensing and completion of renovation for its new schools, such as Invictus-branded international schools in Singapore (Centrium Square campus), Cambodia (Phnom Penh campus) and Hong Kong (Tai Tam campus).\u00a0
\nAs such, revenue contribution from these schools were negligible in FY2020, while expenses and operating costs were incurred during such period.
\nOverall, Chip Eng Seng said it will \u201ccontinue to closely monitor its operations and the COVID-19 situation in order to adjust its measures and strategies accordingly, and will provide updates as and when any material developments arise\u201d.
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s Listings, Project Reviews and Guides.
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Chip Eng Seng warns of a net loss for FY2020 due to COVID-19<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Chip Eng Seng warns of a net loss for FY2020 due to COVID-19Closure of construction...<\/p>\n","protected":false},"author":1,"featured_media":120037,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-120036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/01\/Construction-of-skyscrapers-in-Singapore.jpg?fit=820%2C411&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-ve4","jetpack-related-posts":[{"id":118415,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/guocolands-profit-attributable-to-equity-holders-drop-55-in-fy2020\/","url_meta":{"origin":120036,"position":0},"title":"GuocoLand\u2019s profit attributable to equity holders drop 55% in FY2020","date":"August 26, 2020","format":false,"excerpt":"\r Profit attributable to equity holders fell to $114.1 million from $255.7 million a year ago.\u00a0 GuocoLand\u2019s profit attributable to equity holders for the full year ended 30 June 2020 declined 55% year-on-year to $114.1 million from $255.7 million previously, said the group in a release. 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