Guocoland Q4 net loss narrows to RM11.7mil
Firm says property market to remain lacklustre this year
KUALA LUMPUR: The Hong Leong group’s property arm, Guocoland (M) Bhd posted a narrower net loss of RM11.69mil in the fourth quarter ended June 30, 2019 (4Q19) from RM35.72mil a year ago due to the gain on disposal of hotels of RM104.1mil a year ago.
However, in a filing to Bursa Malaysia, the group posted a revenue of RM131.02mil in the quarter compared to net negative revenue of RM100.5mil in the corresponding period a year ago on the back of revenue recognised from the launch of Emerald Hills in Cheras.
“However, it is mitigated by the lower sales of completed units of the group’s projects which have resulted in a loss before tax of RM4.9mil.
“The net negative revenue of the previous year corresponding quarter was due to cancellations of certain sale and purchase agreements during the period and the effects of the Malaysian Financial Reporting Standard (MFRS) 15,” Guocoland said.
Consequently, the group’s net loss per share narrowed to 1.75sen in 4Q19 from 5.33sen a year ago.
Meanwhile, Guocoland said its selling and marketing expenses of RM3.2mil for the 4Q19 is lower by RM5mil compared to RM8.2mil of the corresponding quarter a year ago due to marketing and launching events for Emerald Hills as well as higher marketing expenses incurred for Sofitel Kuala Lumpur Damansara a year ago.
“Share of profits from associates of RM5.6mil increased compared to the corresponding quarter of the preceding year of RM0.8mil mainly due to higher revenue achieved,” it added.
For financial year 2019 (FY19), Guocoland’s revenue jumped 70.8% to RM414.36mil from RM242.53mil a year ago from the launch of Emerald Hills in Cheras.
The group posted a net loss of RM32.52mil in FY19 from a net profit of RM19.48mil a year ago.
Moving forward, Guocoland said the domestic property market is expected to remain lacklustre this year due to continued weak market and comsumer sentiments.
“The overall momentum and prospects of the property market in the short term is expected to remain soft and challenging,” it added. Moving forward, Guocoland noted that it would launch its projects in line with the existing market sentiments.