Sun Yad Construction Co Ltd (上曜開發) expects revenue to increase rapidly in the second half of this year, as the company might start to recognize income from a luxury housing project in July, chairman Chang Yu-ming (張祐銘) said on Thursday last week.
The Tainan-based company plans to file for an occupancy permit for the city’s first upscale residential building in May and transfer ownership to buyers in July, Chang said.
“The project, with 24 floors above ground and 88 units, is more than 90 percent sold, beating all market expectations in Tainan, where buyers prefer townhouses and dislike management fees,” Chang told an investors’ conference in Taipei.
The NT$3 billion (US$98 million) project could raise the company’s earnings significantly this year, Chang said, without providing further details.
Sun Yad has not yet released its financial results for the final quarter of last year. In the first three quarters, it reported a net loss of NT$0.62 per share, following a net loss of NT$0.88 per share for all of 2015, Taiwan Stock Exchange statistics showed.
Revenue last year dropped 29.45 percent annually to NT$596.98 million and the decline has continued this year, falling 20.51 percent year-on-year to NT$88.43 billion in the first two months, the statistics showed.
The company has in recent years shifted its focus from manufacturing and selling polyurethane resin to residential property development.
Last year, it changed its name from Sun Yad Technology Co Ltd and initiated a program to reduce its capitalization by 32.4 percent to offset losses.
The company is confident the real-estate market is to recover this year, Chang said, adding that Sun Yad has three other residential projects under construction in Tainan.
In the next five years, the company aims to launch new home projects at a pace of 50,000 ping (165,289m2) per year, he said.
Sun Yad is also looking for plots of land in New Taipei City for future projects, he added.