Commenting on the response toward the IPO, EWI president and chief executive officer Datuk Teow Leong Seng said:
KUALA LUMPUR: Eco World Development Bhd posted a net profit of RM33.68mil in the second quarter ended April 30, marginally lower than the RM34.67mil achieved a year ago.
Revenue, however, was 9% higher at RM670mil in the second quarter against RM614.6mil previously. The group reported a pre-tax profit of RM50mil, 3.7% lower than the RM51.9mil reported for 2QFY16.
“This is due to lower gross profit margins in 2QFY17 mainly attributable to affordable products launched by Eco Botanic and Eco Majestic last year which have been included in the results of the current quarter.
“The impact of the lower margin products was however mitigated by lower selling and marketing expenses as well as lower administrative expenses incurred in 2QFY17 as compared to 2QFY16,” the developer said in the notes accompanying its financial report.
For the first six months to April 30, Eco World net profit jumped 170. 7% to RM149.84mil against RM55.34mil previously. Revenue for the period rose to RM1.26bil from RM1.07bil a year ago.
The group explained that the increase in profit as compared to the increase in revenue was due to the inclusion of a gain on dilution of equity interest in Paragon Pinnacle which arose from the application of FRS 10 – Consolidated Financial Statements in 1QFY17.
“The board is pleased to announce that the group achieved sales totalling RM552mil from its Malaysian projects in the second quarter of FY17. As at May 31, year-to-date group sales amounted to RM1.7bil which is approximately 30% higher than the year-to-date sales secured during the corresponding period in FY16 of RM1.3bil,” Eco World said.
The group’s six projects in the Klang Valley contributed RM1.32bil, its seven projects in Iskandar Malaysia contributed RM331mil and the two current projects in Penang contributed RM45mil.
“The second half of FY17 will see the launch of three new projects namely Eco Forest and Eco Business Park V in the Klang Valley as well as Eco Horizon in Penang. These projects are expected to contribute towards the group’s sales in the fourth quarter of FY17.
“Based on sales secured to date and the plans which are underway for the next two quarters, the board is confident that the company is well-positioned to achieve its sales target of RM4bil sales in Malaysia for FY17,” Eco World said.
Meanwhile, Eco World International Bhd
(EWI) net loss narrowed to RM24.8mil for the second quarter ended April 30 from net loss of RM60.8mil a year ago.
The group recorded a loss before tax of RM23.84mil in the second quarter, 60.1% lower than the RM59.77mil in the same period a year ago.
“The lower loss before tax incurred for second quarter ended April 30 was mainly due to unrealised foreign exchange differences as a result of an appreciation in exchange rate of the British pound in the current quarter,” EWI said in the notes accompanying its financial report.
Its revenue for the quarter stood at RM37,000 against RM135,000. It said the group’s revenue for 2QFY17 arose from fees for marketing services rendered by a subsidiary to the group’s joint venture in respect of property sales of its projects in the UK.
“Revenue and profits associated with the group’s property development activities will be recognised by its subsidiary and joint venture when the construction of the relevant units are completed and delivered beginning in the first half of 2018,” EWI said.
For the first six months to April 30, EWI saw its net loss narrowed to RM30.88mil against a net loss of RM118.62mil previously. Its revenue for the period rose to RM364,000 compared with RM212,000 posted last year.
EWI said the group continued to record steady sales, with RM1.05bil locked-in during the first half of FY17. As at May 31, total sales achieved in FY17 amounted to RM1.13bil, bringing total cumulative sales as at May 31 up to RM6.73bil.
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