Raffles Infrastructure Reports 2Q2019 Earnings of RMB24.5 million, Marks First Quarterly Profit After Business Diversification

♦ Revenue increased 556% to RMB33.8 million in the quarter boosted by the newly acquired Infrastructure segment

 Delivered 2 out of 26 road parcels of Xingwen County rural road project that contributed to the Group returning to profitability

 In 2QFY2019 the Group and Consortium signed a framework agreement for building a tourist railway project worth RMB6 billion


Note: The financial year end has been changed from 31 December to 30 June. 

The Group’s infrastructure segment registered revenue of RMB33.8 million in 2Q2019 and gross profit of RMB12.7 million, representing a gross profit margin of 37.6%, mainly attributable to the Group’s delivery of 2 (out of 26) parcels of the Xingwen County rural road project.

Quarter ended 31 Dec

(RMB’000)

2018

2017

Change

Revenue

33,822

5,152

556%

Gross Profit

12,709

513

2377 %

Profit/(Loss) before tax

9,878

(972)

Income Tax

(3,177)

(2)

*n.m

Extraordinary gain on acquisition

18,694

--

*n.m

Profit/(Loss) attributable to equity holders

24,528

(974)

*n.m

The Group has decided to deconsolidate the legacy fabrics operations given the Group has not been able to get clarity of its operation.

It is working closely with special auditor KPMG to complete the special audit soonest possible.

The Group booked an one-off extraordinary gain arising for the acquisition of the BoDao infrastructure segment. The Group managed to purchase below fair value. 

Net profit attributable to shareholders came up to RMB24.5 million for 2Q2019, as compared to a net loss of RMB974,000 recorded in the same previous quarter a year back.

EricChoo9.18CEO Eric Choo (photo) said, “We are extremely proud with the performance of the Group albeit it is still in the midst of restructuring and in the infancy stage of our new business direction.

"The revenue and profit contributions were a direct outcome of the successful completion and delivery of 2 parcels of the rural road project.

"The rail infrastructure industry in PRC continues to provide the Group with opportunities to be involved in many large-scale projects, and we are committed to strengthening our working relations with our existing partners while seeking to embark on new projects with more reputable partners.

"We will also increase our efforts in research and development and continue to capitalise on our technological edge to aim for more work not just in China, but also in other Asian regions.”


On 22 October 2018, the Group announced that it has, together with its consortium partners Tianfu Railtech Valley and China Railway 23rd Bureau Group Co. Ltd., signed a framework agreement for the building of a tourist railway project worth an estimated RMB6 billion.

The framework agreement is awarded by the Tourist Board of the People’s Government of Dengfeng City, and involves 4 phases connecting scenic and tourist areas in Dengfeng City which will be completed by 2026.

Raffles Infrastructure (fka China Fibretech) resumed trading in Sept 2018 after being suspended since Nov 2015.

Subscribers

No. of New Shares

Stake

China Capital Investment Group

16,666,667

24.53%

Asia Hausse Investments

8,333,333

12.26%

Newsome Holdings

8,333,333

12.26%

Wayman Holdings

3,083,333

4.54%

Dr Carol Choong

8,333,333

12.26%

Mdm Su Wan Ru

5,250,002

7.73%

Total

50,000,001

73.58%

In Sept 2018, the Company raised S$30 million from investors by issuing an aggregate of 50,000,001 new shares to China Capital Investment Group ( 中 资 国 本 投 资 有 限 公 司 ), Asia Hausse Investments, Newsome Holdings, Wayman Holdings, Dr Carol Choong and Mdm Su Wan Ru at an issue price of S$0.60 per share.

For full financial results, click here


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