The company anticipates a significant increase in after-tax profit, driven by property disposal in Singapore.
Tan Chong International announced on Thursday, July 7, that it expects its after-tax profit for the first half of 2022, ending June 30, to rise substantially to HK$170 million (S$30.3 million), a marked increase from HK$78.6 million in the same period last year.
This growth is primarily attributed to the disposal of a property in Singapore, as outlined in the company’s filing with the stock exchange. In November 2021, Tan Chong’s wholly-owned subsidiary granted a call option to City Developments to purchase two properties located along Upper Bukit Timah Road for S$126.3 million. The call option was exercised on April 13, 2022.
The company mentioned that business operations in the Asia-Pacific region remained stable, mirroring the performance of the first half of 2021. However, it did note the ongoing challenge of supply chain disruptions, which have limited product availability.
Looking ahead to the second half of 2022, Tan Chong expects improvements in supply as its suppliers address ongoing issues, allowing the company to meet its sales targets.
The filing also disclosed that Tan Chong is anticipating an unrealised loss of HK$7.7 million for the first half of 2022, compared to a loss of HK$1.4 million during the same period in 2021. This loss is attributed to fluctuations in the share prices of the company’s listed investments, which are adjusted to market value but remain unrealised.
Prior to the announcement, Tan Chong’s shares closed flat at HK$1.93.
