South China Assets records $3.28m loss in Q1
This is an improvement from the $7.1m loss in the same quarter last year.
South China Assets Holdings Limited reported a $3.28m loss in the first quarter of the year, attributed to losses in the fair value of financial assets as well as finance cost.
This is lower compared to the $7.1m loss recorded in the same quarter in 2020.
During the period, the Group managed to increase its revenue 12 times to $7.1m from only $562,000 in 2020.
“Such increase in revenue was mainly due to new business segments in property development and face mask,” the Hong Kong-based Group said in its report.
Revenue from the property development business amounted to $6.4m, driven by project management services in China; whilst its financial services revenue stood at $450,000 during the period.
This declined from $562,000 in March 2020, which was linked to poor market sentiment during the pandemic.
Sales of masks and related products amounted to $242,000 with a segment loss of $336,000 due to depreciation expenses in production machinery as well as testing fees.
For this year, the company expects the main construction of its Zhongjie project to be completed. It has so far sold 9% of the property since its pre-sale in December 2020.
It is also expected to start construction work for its Huanghua project by the second hald of the year.