NSG Media Release 1QFY2019 Results

MEDIA RELEASE
New Silkroutes Group’s 1QFY2019 revenue rises 13.4% to US$169.3
million
• Gross profit increased two-fold to US$3.6 million in 1QFY2019, driven by the growth
of its healthcare division and steady performance of the oil trading businesses
• Focus on healthcare continues to bear fruit as the segment’s revenue and gross profit
grew by 2.1 times
• Energy business continues to underpin NSG with stable revenue and earnings
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Singapore – 14 November 2018. SGX Mainboard-listed investment holding company
New Silkroutes Group Limited (“NSG”, or together with its subsidiaries the “Group”),
today announced that it has achieved revenue of US$169.3 million for the three months
ended 30 September 2018 (“1QFY2019”), up 13.4% from US$149.3 million in the
previous corresponding period a year ago (“1QFY2018”).
Gross profit increased two-fold to US$3.6 million in 1QFY2019 driven by the growth of its
healthcare division and steady performance of its oil trading businesses.
NSG’s healthcare arm, Healthsciences International Pte. Ltd., recorded a net profit of
US$12,000 in 1QFY2019. Revenue rose nearly 2.1 times to US$2.6 million in 1QFY2019
from US$1.2 million the same quarter last year mainly due to contribution from the three
dental clinics acquired on 30 October 2017 and six family medicine and aesthetics clinics
acquired on 2 August 2018.
In 1QFY2019, NSG’s oil trading subsidiaries, International Energy Group Pte Ltd and IEG
Malta Limited, reported a combined net profit of US$335,000. Revenue from the oil
trading business increased by 12.6% to US$166.7 million in 1QFY2019 mainly due to an
increase in oil trading activities and logistic capacities. Oil trading activities continue to
grow and demand remains strong despite rising oil prices.
The Group incurred a net loss of US$478,000 in 1QFY2019 mainly due to an increase in
operating expenses from the newly acquired healthcare subsidiaries, as well as one-off
expenses amounting to US$404,000 relating to professional fees due to corporate
exercises and loss on deregistration of a subsidiary. Excluding the one-off expenses,
the Group would have generated a lower net loss of US$74,000 in 1QFY2019.
Dr Goh Jin Hian, NSG’s Chief Executive Officer, said: “We are continuing to grow our
revenues and gross profits quarter-on-quarter and year-on-year. We have received
resounding support from our shareholders for our growth strategy. However, as we
complete our acquisition of the healthcare consumable production facility in Shanghai
and as we continue to streamline our company by closing off dormant subsidiaries, there
are one-off corporate expenses which we have taken onboard this quarter.
On the positive side, we expect the revenue and profit contribution from our Shanghai
acquisition to be accretive to our earnings from the second half of our financial year.”
~~ END ~~
This media release is to be read in conjunction with the Company’s announcement posted on the website
of the SGX-ST on 14 November 2018
About New Silkroutes Group Limited
New Silkroutes Group (Reuters: NEWS.SI; Bloomberg: NSG SP) is a Singaporeincorporated
investment holding company listed on the Mainboard of Singapore
Exchange Securities Trading Ltd (SGX). The group, through its subsidiaries and
associate companies, has businesses in the Energy/Resources and Healthcare sectors.