Net profit is down 71% to $1.74m.
A First and Final dividend of 2.5 cents is being declared.
Net cash of $173.6 million, 20.1 cents per share.
With the outbreak of the COVID-19 virus across China, and the measures taken by the Chinese authorities to contain the spread, the tourism industry is expected to be adversely affected. The Company had previously announced the closure of its three attractions in China, namely Shanghai Ocean Aquarium, Underwater World Xiamen and Lixing Cable Car since 25 January 2020, first on a voluntary basis and subsequently in conformance with the authorities’ directive to prevent the spread of the highly infectious COVID-19. Given that this outbreak continues to be an evolving development, there is a material uncertainty as to the duration and extent of the travel curbs imposed on travel, as well as closure of the Company’s attractions in China. Even after the curbs are lifted and the Company’s attractions reopens, it is uncertain as to when tourists and visitors to the Company’s attractions in China will reach pre-COVID-19 levels. In view of the foregoing factors, there is a material risk that the Group’s financial performance for the current financial year will be materially adversely affected.
In addition, the suspension of ride operations of the Singapore Flyer since late November 2019 due to a minor technical issue involving a spoke cable is expected to also weigh on the performance of the subsidiary. Though the Company has in place insurance coverage for Property All Risk and Business Interruptions due to Machinery Breakdown, the amount of recoverable lost revenue will still be subject to an insurance claim.
Notwithstanding, the Company, having assessed its current financial position, and barring any unforeseen circumstances, is confident that it can ride over these events as aforesaid.
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