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Quarterly Report For The Financial Period Ended 30 June 2017

Financials Archive

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Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
For The Financial Period Ended 30 June 2017

Income Statement

Condensed Consolidated Statement of Financial Position
As At 30 June 2017

Balance Sheet

Detailed analysis of the performance of all operating segment of the Group

Financial review for current quarter

review_01

Current quarter ("2Q 2017") against preceding year corresponding quarter ("2Q 2016")

For the 2Q 2017, the Group registered revenue of RM35.526 million and loss before of RM2.462 million as compared to revenue of RM31.507 million and loss before of RM2.530 million reported in the 2Q 2016. The increase in Group revenue was mainly due to increase in work done for our construction activities. Despite 12.8 % increase in revenue, the loss before tax was lower by 2.7 % mainly due to higher overhead costs incurred in 2Q 2017 for the trading and services segment.

The performance of the respective operating business segments for the 2Q 2017 under review as compared to the 2Q 2016 is analysed as follow:

Trading and services

The trading sector reported a lower revenue of RM24.622 million for the 2Q 2017 as compared to RM26.936 million in 2Q 2016, mainly due to the lessor demand from existing key customers. The higher loss before tax of RM1.611 million in 2Q 2017 as compared to loss before tax of RM0.992 million was mainly due to increase in overhead costs in 2Q2017 and lesser sales to existing key customers.

Property development

No revenue was recognised as no property was delivered with vacant possession during the quarter.

Construction

The construction sector registered a higher revenue of RM12.223 million in 2Q 2017 as compared to RM4.163 million in 2Q 2016. An increase in revenue for 2Q 2017 was mainly due to increase in work done for our construction projects. The construction sector also recorded lesser loss of RM0.149 million compared to loss before tax of RM 0.507 million in 2Q 2016 due to increase in work done.

Investment property

Revenue for the current quarter improved by 13.8% from RM0.747 million to RM0.850 million due to new tenancies entered by the Group. Correspondingly, this sector recorded higher profit before tax of RM0.176 million for the 2Q 2017 compared to RM0.103 million in 2Q 2016.

Financial review for financial year to date

review_02

Current year to date ("YTD 2017") against preceding year corresponding period ("YTD 2016")

For the YTD 2017, the Group recorded revenue of RM67.958 million, an increase of RM4.135 million or 6.5% from RM63.823 million in YTD 2016. The Group also recorded lesser loss before tax of RM4.100 million, a decrease of RM1.313 million from RM5.413 million in the YTD 2016. The increase in total revenue despite lower income from trading division was mainly due to increase in work done for our construction projects and sale of a completed development unit. The decrease in the Group's loss before tax by 24.3% from 2Q 2016 was mainly due to increase in revenue from our construction and property development segments, which has a higher profit margin.

The performance of the respective operating business segments for the YTD 2017 under review as compared to the YTD 2016 is analysed as follow:

Trading and services

The trading sector reported a lower revenue of RM50.859 million for the YTD 2017 as compared to RM55.874 million in YTD 2016. The decrease in revenue was mainly due to the decrease in sales volume from existing key customers. The higher loss before tax of RM 3.443 million in YTD 2017 as compared to loss before tax of RM1.976 million in YTD 2016 was mainly due to increase in overhead costs in YTD 2017.

Property development

The property development sector registered a profit before tax of RM1.360 million on the revenue of RM2.638 million, due to sale of a completed unit during the period, decrease in sales & marketing expenses and non-claimable GST expenses for residential property.

Construction

The construction sector registered a higher revenue of RM16.460 million in YTD 2017 as compared to RM7.093 million in YTD 2016. The sector has also registered a lesser loss before tax of RM0.632 million due to increase in work done.

Investment property

Despite an increase in the revenue, profit before tax decreased mainly due to increase in repair and maintenance cost for building incurred during YTD 2017.

Prospects

The sluggish outlook for the construction and property development industry where the Group business substantially depends on, is expected to prolong and remain challenging to the Group's performance. Moving forward, the Group expects to increase its construction order book which currently stand at RM106.579 million and enhance its trading activities. The Group will continue to look for new business opportunities in Malaysia and abroad, in its effort to strive for a commendable performance for the remaining period of the financial year.