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MANILA, Philippines – South China Resources Inc. (PSE:SOC) discloses its nine-month financial results with a net amounting to P3.26 million from P6.44 million, a 49.37 percent plunge. Revenues of the company had a 26.57 percent drop from P214.12 million down to P157.22 million.
The third quarter performance of the company suffered an erosion of its revenues from P136.14 million to P38.85 million, a 71 percent drop from the same period last year. Net income, on the other hand, dropped by 119 percent from incurring a net income of P20.63 million to a net loss of P3.86 million from the third quarter of 2015.
SOC’s assets as of September 30, 2016 are relatively flat at P1.75 billion. Current assets decreased from P1.79 billion to P1.62 billion, a 9.85 percent decrease. In contrast, the non-current assets of the company rose by 31.56 percent from P99.04 million to P130.31 million.
According to the company, the slight drop in current assets was brought by the 8.06 percent or 89.6 million drop in real estate for sale due to the recognition of the cost of units sold and payment of progress billings of Althea. The increase in non-current assets is due to the increase in noncurrent receivables due to the net effect amid the turnover of units and recognition of its sales. The 20 percent down payment for the units selloff has already been collected. In addition, the company’s leasehold improvement cost recognition also attributes to its expanded non-current assets.
Alternatively, liabilities also decreased from P262.58 million to P156.27 million, a drop of 80 percent. The company’s equity stands at P1.62 billion. Retained earnings now amount to P1.62 billion.
SOC was incorporated and registered with the Securities and Exchange Commission (SEC) on September 25, 1992. The company primarily focuses on the exploration of oil and gas. Development and production of oil also became its major segments. In 1995, the company improved its core businesses by investing in other industries, such as steel fabrication, telecommunications, real estate, and energy exploration. The company’s balance sheet remained strong and free of borrowings cost.
At present, the company is looking into food production. According to the management’s hypothesis, the Asian region’s economic growth could increase food consumption and greater protein demand. On June 22, 2016, the company received a consent from National Commission on Indigenous People (NCIP) to develop a 5,000-hectare ancestral land for Barangay Campong Ulay, Rizal, Palawan as an agro-forest coffee project.
SOC closed at P0.85-apiece as of November 18, 2016, 19.72 percent up year to date.