Boo says the decision to increase its equity participation in Yong Tai shows Co-Prosperity
KUALA LUMPUR: Tourism and cultural property developer Yong Tai Bhd
's net profit jumped 80% to RM6.59mil in the financial year ended June 30, 2017, boosted by the development within the Impression City, Melaka project.
The company said on Thursday this was an improvement from the RM3.67mil in FY16.
“Profit from continuing operations for the year under review jumped to RM13.70mil from RM887,000 a year ago. Turnover jumped 388% to RM87.61mil from RM17.94mil recorded a year ago,” it said.
As for the fourth quarter ended June 30, 2017, net profit increased by 45% to RM3.43mil from RM2.36mil a year ago.
Yong Tai said profit from continuing operations in Q4 surged to RM10.35mil from RM379,000 a year ago. Revenue surged to RM67.24mil from RM2.78mil.
Yong Tai group CEO Datuk Wira Boo Kuang Loon said the improved financial performance was underpinned by the development within the Impression City, Melaka project. The development which had started were the retail mall and recently launched Amber Cove serviced apartments.
“Progress billings from the advance stage of construction of an ongoing mixed development project, The Apple, which comprises of a 32-storey serviced apartment with 361 units adjacent to a currently being built 'Courtyard by Marriott' four-star hotel also added to the growth,” he added.
Boo was upbeat on the outlook for Yong Tai as the official opening of the Impression Melaka theatre would boost demand for properties in Impression City, Melaka.
To recap, the RM7bil integrated mixed development project consists of Impression Melaka theatre, residential properties, education centre, hotels, shopping mall, commercial lots and office towers.
Work on the Impression Melaka theatre is expected to be completed by the fourth quarter of 2017 and is expected to have its premier by the first quarter of 2018.
The Impression Melaka theatre is the 10th globally and the first outside of China to stage the highly acclaimed “Impression” series performing arts by the award-winning film director, writer and cinematographer Zhang Yimou and his co-directors, Wang Chaoge and Fan Yue.
Yong Tai holds the exclusive 30-year concession for Impression series performing arts in five Southeast Asia nations namely Malaysia, Singapore, Thailand, the Philippines and Indonesia.
Apart from the property development projects in Malacca, Yong Tai will develop two adjoining plots of land in Jalan U-Thant, Kuala Lumpur with an estimated gross development value (GDV) of RM180mil under a joint venture.
Yong Tai is also in the midst of acquiring the 1.078 acre plot of leasehold land in Bukit Bintang, Kuala Lumpur. It is planning a mixed development project which comprises of an office tower, hotel and serviced residences properties with an estimated GDV of up to RM1bil.
“With the strengthened balance sheet and diversified revenue stream to be generated from the operation of the theatre and property development activities, the board is confident that the group will remain in good stead to perform resiliently in FY2018,” Boo added.
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