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Quarterly Report For The Financial Period Ended 30 September 2019

Financials Archive

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Condensed Consolidated Statement of Financial Position
As At 30 September 2019

Balance Sheet

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
For The Financial Period Ended 30 September 2019

Income Statement

Detailed analysis of the performance of all operating segment of the Group in 3Q 2019

Current quarter ("3Q 2019") against preceding year corresponding quarter ("3Q 2018")

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For the 3Q 2019, the Group registered revenue of RM116.062 million and profit before tax of RM4.105 million as compared to revenue of RM53.960 million and loss before tax of RM2.707 million reported in 3Q 2018.

The performance of the respective operating business sector for the 3Q 2019 under review as compared to the 3Q 2018 is analysed as follow:

Trading

The trading sector reported revenue of RM30.217 million in 3Q 2019 as compared to RM29.102 million in 3Q 2018. Although the revenue has increased by RM1.115 million (3.8%) in 3Q 2019, the sector recorded a loss before tax of RM3.562 million as compared to profit before tax of RM1.272 million in 3Q 2018, mainly due to provision for impairment loss on trade receivable of RM5.292 million.

Property development

The revenue and profit before tax for this division showed an improvement, mainly due to revenue from the sale of completed units during the quarter.

Construction

The revenue has improved by RM61.532 million to RM89.782 million in the 3Q 2019 as compared to RM28.250 million in 3Q 2018 due to higher percentage of work progress in 3Q 2019. The sector also registered an improved results of RM7.833 million compared to a loss before tax of RM0.799 million in 3Q 2018, due to increase in work done.

Investment property

The increase in revenue and profit before tax were due to additional rental income from a new tenancy for an investment property of the Group.

Other services

The decrease in revenue was mainly due to decrease in rental of plant and machinery revenue in 3Q 2019. This sector recorded a loss before tax of RM0.993 million as compared to loss before tax of RM1.322 million in 3Q 2018, mainly due to lesser overhead costs incurred in 3Q 2019.

Current year to date ("YTD 2019") against preceding year corresponding period ("YTD 2018")

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For the YTD 2019, the Group recorded revenue of RM281.093 million, an increase of RM173.951 million or 162.4% from RM107.142 million in YTD 2018. The Group also recorded profit before tax of RM7.854 million in YTD 2019 as compared to a loss before tax of RM20.501 million in YTD 2018. The increase in revenue was mainly contributed by construction and trading sectors.

The performance of the respective operating business sectors for the YTD 2019 under review as compared to the YTD 2018 is analysed as follow:

Trading

Despite an increase in revenue from RM59.928 milliom in YTD 2018 to RM100.732 million in YTD 2019, the sector had registered a reduced profit before tax of RM0.131 million as compared to RM1.509 million in YTD 2018, mainly due to a provision for impairment loss on trade receivable of RM5.292 million.

Property development

Despite a marginal decrease in revenue from RM4.707 million in YTD 2018 to RM4.599 million in YTD 2019, the sector had registered a profit before tax of RM0.904 million as compared to loss before taxation of RM0.137 million in YTD 2018, mainly due to lower overhead costs incurred in YTD 2019.

Construction

The construction sector registered a higher revenue of RM199.341 million in YTD 2019 as compared to RM45.554 million in YTD 2018. This sector recorded profit before tax of RM11.668 million in YTD 2019 as compared to loss before tax of RM15.746 million in YTD 2018 mainly due to higher percentage of work progress and reversal of provision for impairment loss on receivables of RM8.223 million after the finalisation of account from an old completed project.

Investment property

The investment property sector recorded a decrease in revenue of 3.4% from RM2.037 million to RM1.968 million due to termination of tenancy for certain units of Group's investment properties. The profit before tax increased from RM0.220 million to RM0.246 million was mainly due to lower overhead costs incurred in YTD 2019.

Other services

Despite a decrease in revenue, the sector registered a lower loss before tax of RM3.679 million as compared to RM4.854 million in YTD 2018, mainly due to lesser overhead costs incurred in YTD 2019.

Comparison with preceding quarter results

Current quarter ("3Q 2019") against immediate preceding quarter ("2Q 2019")

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For 3Q 2019, the Group recorded revenue of RM116.062 million, an increase of RM21.733 million or 23.0% from RM94.329 million in 2Q 2019. The Group recorded profit before tax of RM4.105 million as compared to profit before tax of RM2.737 million in 2Q 2019. The increase in revenue is mainly contributed by trading and construction sectors, whereas the increase in profit before tax is mainly contributed by construction sector.

Prospects

Barring any unforeseen circumstances, the Board is of the opinion that the performance of the Group will improve in view of the year-to-date performance and current order book of about RM420 million. The Group will strive for new business opportunities and increase its construction order book in its effort for a better performance for the financial year ending 31 December 2019.