Financials


Condensed Consolidated Statement Of Comprehensive Income
For the financial year ended 31 December 2017

Comprehensive Income

Condensed Consolidated Statement Of Financial Position
As At 31 December 2017

Financial Position

Financial review for current quarter

Financial Position

Current quarter (“2Q 2018”) against preceding year corresponding quarter (“2Q 2017”)

For the 2Q 2018, the Group registered revenue of RM297.876 million and profit before tax of RM74.039 million as compared to revenue of RM274.956 million and profit before tax of RM55.448 million reported in the 2Q 2017.

The performance of the respective operating business segments for the 2Q 2018 under review as compared to the 2Q 2017 is analysed as follow:

Construction operations

The construction sector reported a lower revenue of RM182.763 million for the 2Q 2018 as compared to RM213.528 million in 2Q 2017. The decrease in revenue and profit before interest and tax in the 2Q 2018 were mainly due to the completion of Duke Phase 2 which resulted a lower progress construction workdone recognized in current quarter

Property development

The property development segment reported a higher revenue of RM78.796 million as compared to RM23.593 million in the preceding year corresponding quarter. Higher sales recognition for property development following increase progress work done has contributed to a higher revenue for the segment. Correspondingly, this sector recorded higher profit before interest and tax of RM23.307 million for the 2Q 2018 as compared to RM6.316 million in 2Q 2017.

Toll operations

The toll operations sector registered a lower revenue of RM36.175 million in 2Q 2018 as compared to RM37.643 million in 2Q 2017. The revenue for 2Q 2017 includes a one-off toll compensation amounting to RM7.986 million. Had the compensation amount been excluded, the 2Q 2018 revenue would have been higher by RM6.518 million. Besides the increase in traffic volume, the opening of the Duke Phase 2 on 23 October 2017 has also contributed to the increase in the revenue recognized in 2Q 2018.

Investment holding

Revenue for the current quarter decreased from RM0.192 million to RM0.142 million due to reduction in rental income as more office space is required for internal usage. Correspondingly, this has reduced the sector’s profit before tax for the quarter.

Financial Position

Current year to date (“YTD 2018”) against preceding year corresponding period (“YTD 2017”)

For the YTD 2018, the Group registered a revenue of RM528.516 million and profit before tax of RM129.923 million as compared to the revenue of RM478.502 million and profit before tax of RM109.629 million reported in YTD 2017.

The performance of the respective operating business segments for the YTD 2018 under review as compared to the YTD 2017 is analysed as follow:

Construction operations

The construction sector reported a lower revenue of RM339.233 million for the YTD 2018 as compared to RM368.839 million in YTD 2017. The decrease in the revenue for the YTD 2018 was attributed to lower construction workdone due to completion of Duke Phase 2 project. Furthermore, in the YTD 2017, a higher revenue was recognized from the initial commencement of preliminary and enabling work for SPE which also has a better profit margin as compared to the progress construction workdone recognized in the YTD 2018.

Property development

The property development segment reported a higher revenue of RM121.425 million as compared to RM42.022 million in the preceding year. Higher sales recognition for EkoCheras Project following additional progress work done has contributed to a higher revenue for the segment. Correspondingly, this sector recorded higher profit before interest and tax of RM41.354 million for the YTD 2018 as compared to RM11.910 million in YTD 2017.

Toll operations

The toll operations sector registered a slightly higher revenue of RM67.469 million in YTD 2018 as compared to RM67.167 million in YTD 2017. The revenue for YTD 2017 includes a one-off toll compensation amounting to RM7.986 million. Had the compensation amount been excluded, the YTD 2017 revenue would have been RM59.181 million. Besides the increase in traffic volume, the opening of the Duke Phase 2 on 23 October 2017 has also contributed to the increase in the revenue recognized in YTD 2018.

Investment holding

Revenue for the YTD 2018 decreased from RM0.474 million to RM0.389 million due to reduction from rental income as some of the tenancies were not renewed. Correspondingly, this has reduced the profit before tax from RM0.122 million to a loss of RM0.180 million for the current YTD.

Prospects

The Board expects the ongoing construction of SPE, River of Life and related projects, the opening of the DUKE Phase-2’s toll revenue and the recognition of unbilled sales from property development activities to contribute positively to the Group's turnover and profitability in the current financial year.

Barring any unforeseen circumstances, the Board is confident that the Group’s performance would remain satisfactory for the financial year ending 30 June 2018.