Between Aug 3 and 4, First Sponsor Group : ADN +2.36% alternate director to the non-executive chairman, Ho Han Khoon, acquired 200,000 shares of the listed company for a consideration of S$250,800. At S$1.25 per share, this increased his total interest in the company from 31.43 per cent to 31.45 per cent.

 

On Jul 29, First Sponsor Group reported a H1 2022 net profit of S$71.3 million, representing 3.5 per cent growth from H1 2021, with the group also gaining 2 new residential development projects In Dongguan in July 2022.

 

Ho&rsquo s recent acquisitions followed similar acquisitions following the H1 2021 results, when he acquired 195,000 shares at S$1.40 per share.

 

Ho was appointed an alternate director to Calvin Ho Han Leong on May 19, 2014. He is currently holding the position of executive vice-president of Tai Tak, where he is responsible for overseeing Tai Tak group' s overall business and financial strategy, investments and operations.

 

First Sponsor Group, which is 35.72% held by City Developments, and 45.63% owned by Tai Tak Estates, reported earnings of $71.3 million for the 1HFY2022 ended June.

 

The half-year period&rsquo s earnings represented an increase of 3.5% over the earnings of $69.0 million in the same period the year before.

 

1HFY2022 earnings per share (EPS) stood at 5.38 cents on a fully diluted basis.

 

During the period, the group&rsquo s revenue fell 26.5% y-o-y to $115.3 million due to the decrease in revenues from the sale of properties and property financing.

 

In the 1HFY2022, revenue from the sale of properties plunged 74.0% y-o-y to $21.1 million, while revenue from property financing fell 28.1% y-o-y to $39.2 million.

 

The lower revenue from the sale of properties was mainly due to the first-time profit recognition of the Soho loft units in Plot F of the Millennium Waterfront project in 1HFY2021.

 

Revenue recognition in 1HFY2022 was from the sale of 40 Plot F Soho loft units and 10 commercial units of the Millennium Waterfront project compared to the 619 Plot F SOHO loft units, one commercial unit and seven car park lots recognised in 1HFY2021.

 

The lower revenue was offset by rental income from investment properties and revenue from hotel operations, which rose 7.6% y-o-y and 217.5% y-o-y to $6.3 million and $48.6 million respectively.

 

The higher rental income from investment properties was mainly due to the contribution from the East Sun Entities which were consolidated by the group with effect from March 31, 2021.

 

The higher revenue from hotel operations came from the 11 Bilderberg hotels in the Netherlands, which was consolidated by the group with effect from May 2. The rest of the European hotels saw revenue surge 281% y-o-y, underpinned by the strong demand arising from the removal of the Covid-19 restrictions.

 

Finally, revenue from property financing fell mainly due to the lower average PRC PF loan book for 1HFY2022 of RMB2.14 billion ($451.3 million).

 

In the 1HFY2022, gross profit fell by 7.0% y-o-y to $66.2 million on the back of the lower revenue.

 

As at June 30, cash and cash equivalents stood at $651.9 million.

 

During the period, the group declared an interim dividend of 1.1 cents, payable on Sept 1.

 

Between Mar 17 and 18, First Sponsor Group First Sponsor : ADN 0% non-executive chairman Calvin Ho Han Leong acquired 599,000 shares of the company at an average price of S$1.37 per share. With a consideration of S$819,338 this increased his total interest in the group from 46.37 per cent to 46.44 per cent. This followed on from the acquisition of 63,900 shares at an average price of S$1.34 per share on Feb 24.

 

Ho was appointed the non-executive chairman of the company in April 2015. Prior to this, he had served as the non-executive vice-chairman of the company since Oct 1, 2007. He has also accumulated extensive experience during his tenure as CEO of Singapore-incorporated Tai Tak Estates.

 

Back on Feb 11, First Sponsor Group CEO Neo Teck Pheng highlighted that FY21 (ended Dec 31) saw the group set a new record annual pre-tax profit, since its inception, of S$202.6 million and a net profit of S$121.5 million for FY21, representing 17.7 per cent growth from FY20.

 

This was underpinned largely by the profit contribution from The Pinnacle project and a record annual average China property financing loan book. Mr Neo also added that the group is backed by a strong balance sheet, substantial unutilised committed credit facilities and potential equity infusion from the exercise of outstanding warrants.

PROPERTY developer First Sponsor Group reported S$121 million in net profit for the full year ended Dec 31, 2021, up 17.7 per cent from S$103 million in the year-ago period, the company said in a bourse filing after market hours on Friday (Feb 11).

 

The company, which is engaged primarily in business in China, announced a second interim cash dividend of 2.35 Singapore cents for FY2021, in lieu of a final dividend. This brings the total dividend declared for the year to 3.45 Singapore cents.

 

Revenue for the year was up 189 per cent to S$589 million, led by strong growth from sale of properties.

 

Revenue from this particular segment increased by 628 per cent or S$358 million to S$415 million, due mainly to the first handover of 6 residential apartment blocks of The Pinnacle in Dongguan, as well as the handover of loft units in the Millennium Waterfront project in Chengdu.

 

Revenue from hotel operations climbed 27.8 per cent to S$42 million, mainly due to a pick-up in performance of hotels in China and Europe as Covid-19-related travel restrictions eased. Rental income from investment properties went up 47.1 per cent to S$13 million. Revenue from property financing was up 13.1 per cent to S$119 million.

 

Administrative expenses went up 25.8 per cent to S$36.1 million mainly due to higher staff costs, while selling expenses were up 74.2 per cent to S$10.2 million.

 

The group achieved a lower overall gross profit margin of 41 per cent in FY2021, compared to 84.3 per cent in FY2020. It attributed this to a change in sales mix, with the lower-yielding property development business contributing a larger share of total revenue in the current year.

 

Earnings per share for the full year stood at 13.26 Singapore cents, compared with 11.97 Singapore cents in FY2020.

 

Group chief executive officer Neo Teck Pheng said First Sponsor' s property development business segment will remain active in the coming year, with the group expecting to launch new pre-sales for 5 projects in China.

 

The property financing business in China achieved a record full-year average loan book of 2.7 billion yuan (S$571 million) for FY2021. With an improving credit liquidity situation in the country, however, the challenge for the group would be to maintain a similar average loan balance in FY2022, Neo said.

 

In the Netherlands, the group has entered into agreements with main contractors for the Dreeftoren Amsterdam redevelopment project, for which construction is expected to begin in the first quarter of 2022.

 

The group remains optimistic about the recovery of Europe' s hospitality business in the mid to long term, Neo said. He added that it is discussing with business partners to increase its current 31.4 per cent equity interest in the Dutch QBN hotel portfolio.