Straco Corporation Limited

| 中文 |

Email This Print This

First Quarter Ended 31 March 2018 Unaudited Financial Statement And Dividend Announcement

Financials Archive

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

Income Statement

Income Statement

Statement Of Comprehensive Income

Comprehensive Income Statement

Balance Sheet

Balance Sheet

Review of the performance


In the first quarter of FY2018, the Group achieved sales of $18.8 million, 31.7% lower than the corresponding period in 1Q2017, mainly due to the more than two months suspension of rides at our Singapore Flyer since 25 January 2018 due to a technical issue. Shanghai Ocean Aquarium ("SOA") and Underwater World Xiamen ("UWX") also reported lower revenues this quarter on lower visitor numbers, as well as the value-added tax on ticket revenue being accounted for this year by SOA, as the tax waiver on ticket revenue for Shanghai educational bases for this year has not been issued yet.

Overall visitation to all our attractions was 0.80 million visitors for the quarter, 24.7% lower than the corresponding period in 1Q2017.

Operational Results

Total Expenses (excluding finance cost) for 1Q2018 was 13.90 million, a decrease of $1.62 million, or 10.5% from 1Q2017. Cost of sales for 1Q2018 was lower than corresponding period, due to lower retail and F&B sales. Consultancy expenses increased, as 1Q2017 amount included a reversal of a previously accrued amount. Sales and marketing expenses for the quarter increased, mainly due to higher advertising and promotional expenses, higher service fee paid to ferry operators at UWX as more tickets were sold by them, and higher sales and operation taxes incurred this quarter as SOA accounted for the surtax on value-added tax payable on ticket revenue, as required by the Shanghai Municipal Tax bureau, while pending for the tax waiver on ticket revenue for this year to be issued. Exchange gain was recorded in this quarter, compared to an exchange loss in 1Q2017, as Renminbi currency strengthened against Singapore dollar.

Profit before tax was $6.33 million for the current quarter, 52.2% lower than the profit before tax of $13.23 million for 1Q2017, mainly attributable to the losses suffered by Singapore Flyer this quarter due to the rides suspension.

Balance Sheet items

Other current assets increased 37.2% from $0.94 million at 31 December 2017 to $1.29 million at 31 March 2018, mainly due to increase in prepayments.

Reserves increased 19.3% from $17.46 million at 31 December 2017 to $20.82 million at 31 March 2018, mainly due to the translation gain of $3.09 million arising from the stronger RMB currency against SGD at the end of the current period compared to the end of last year; the increase in share option reserves of $0.19 million during the period arising from share options granted in 2017, as well as an amount of $0.08 million set aside by Lixing Cable Car from its 2016 profit which was distributed as dividend in this quarter.

Trade and other payables decreased 21.0% from $11.21 million at 31 December 2017 to $8.86 million at 31 March 2018, mainly due to the decrease in other payables and accruals as the performance bonus accrued in 2017 were paid out in the current quarter.

Cash flow Statement

The Group generated net cash from operating activities amounting to $3.61 million for 1Q2018, compared to $11.69 million generated in 1Q2017, as the ride operation at Singapore Flyer was suspended for more than two months this quarter. As at 31 March 2018, the Group's cash and cash equivalent balance amounted to $192.95 million.


The National Bureau of Statistics of China reported that China's gross domestic product ("GDP") grew 6.8% in the first quarter of 2018 on strong consumer demand and robust property investment. Consumption, which accounted for 77.8% of economic growth in the first quarter, played a significant role in supporting the economy.

China's tourism industry is increasingly becoming a strategic pillar industry of the country. It was reported that in 2017, every Chinese person made 3.7 trips on average and that the industry's contribution to the national economy and job creation exceeded 10%. The country has declared the year 2018 as "Beautiful China – Year of Integrated Tourism", with the aim of a more balanced and sustainable tourism development and to better serve the demands of domestic and international travelers.

In Singapore, the economy grew 4.3% year-on-year in 1Q2018, based on advance estimates from the Ministry of Trade and Industry. On the tourism sector, the Singapore Tourism Board ("STB") reported that tourist arrivals and spending in 2017 hit a record high for the second year in a row year, with a year-on-year increase of 6.2% in overall number of arrivals to 17.4 million, and a 3.9% year-on-year increase in tourism receipts to $26.8 billion. For 2018, STB projected a 0-4% increase in visitor arrivals and 1-3% growth in tourism receipts.

At the Group level, the ride operation at Singapore flyer has resumed on 1 April 2018, after it received approvals from the authorities and that the necessary safety checks and tests have been carried out to the satisfaction of the Building and Construction Authority.