KUALA LUMPUR: Yong Tai Bhd
, which shifted its core business from garments to property, sees better prospects for the financial year ending June 30, 2017, underpinned by its RM600mil property projects in Melaka.
Its CEO Boo Kuang Loon said on Tuesday he expects the company's financial performance to be anchored by “The Apple” and “Impression City” projects in Melaka.
“We expect to see a major turnaround in FY2018 when the international standard performance Impression Melaka takes place and contribute long term recurring income to Yong Tai,” he added.
Yong Tai will launch the retail clusters in Impression City, which is a cultural tourism properties development in Melaka next month, which has a GDV of RM600mil.
Its first property project was The Pines, a 29-storey condominium hotel, which was completed and sold. It was undertaken via a joint venture with Melaka-based PTS Properties Sdn Bhd.
Yong Tai is also the project manager of The Apple and Courtyard by Marriott, a 32-storey service apartment in Melaka and 16-storey four-star hotel, of which the hotel operations will be managed by the well-known Marriott Group.
Boo said Yong Tai would continue to grow its property development business and also seek for more sites for its property development activities.
In FY ended June 30, 2016, it posted net profit of RM3.70mil, down from RM7.73mil a year ago due to loss incurred from disposal of its garment business.
The sale of the garment business was to enable Yong Tai to deconsolidate a loss-making business entity as it focuses on property development in the future.
Yong Tai recorded RM36.68mil in revenue compared with RM66.46mil a year ago due to the decrease in revenue from the property development.
Currently, “The Apple” project, which has a GDV of RM250mil, is the only on-going property project for Yong Tai.
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