Despite the falls, the group, which has operations in China and the Netherlands, said its overall gross margin for the period remained fairly consistent at 45.2 per cent, compared to 44.8 per cent a year earlier.
First Sponsor’s H2 earnings per share stood at S$0.0019, down from S$0.0649 in H2 FY2022.
The group declared a final dividend of S$0.031 per share for FY2023, higher than the FY2022 final dividend of S$0.027 per share.
The FY2023 final dividend will be paid on May 27, subject to shareholder approval at the group’s annual general meeting.
Together with its interim dividend of S$0.011 per share in H1 FY2023, this brings the total dividend for FY2023 to S$0.042 per share.
For the full year ended Dec 31, 2023, First Sponsor recorded a net profit of S$12.5 million, down 90.5 per cent from S$131.3 million in FY2022.
Full-year revenue slid 33.8 per cent year on year to S$282.9 million, from S$427.5 million.
The group attributed this to an 82 per cent fall in revenue from sale of properties, arising from a lack of significant inventory handover.
First Sponsor noted that property market sentiments in China worsened in the latest half-year, with even weaker buying confidence dampening pre-sales for its projects.
“Despite slow pre-sales, the group does not intend to significantly compromise on the selling prices of these projects, but will instead adopt a longer-term view as appropriate, continuing to sell them with an operating profit margin,” it said.
The group noted that a “substantial number” of these projects will be able to commence at least a partial handover in FY2024, and that if buying confidence returns, it would be able to accommodate additional sales.
Meanwhile, in the Netherlands, the group’s Dreeftoren redevelopment project in Amsterdam will be delayed by six months as a result of the facade contractor filing for bankruptcy last September.
“The targeted completion dates have been revised to Q2 2025 and Q2 2026 for the office and residential tower, respectively,” said First Sponsor.
The counter ended unchanged on Tuesday at S$1.19, before the release of the results.
