KUALA LUMPUR: Yong Tai Bhd
returned to the black with net profit of RM7.75 million for FY end June 30, 2015 (FY15), underpinned by its property venture.
This was a turnaround fro the company which posted a net loss of RM7.28mil a year ago, according to its statement on Thursday.
Yong Tai’s revenue doubled to RM97.02mil from RM48.46mil a year ago mainly due to revenue recognition from on-going project in the property development business segment.
“The profits were mainly from the joint venture project collaboration in the property business and gain on disposal of two loss-making wholly owned subsidiaries, Golden Vertex Sdn Bhd and The Image Outlet Sdn Bhd that amounted to RM7.05mil,” it said.
Yong Tai executive director Ng Jet Heong said the group’s performance was boosted by revenue contribution from the property development segment of RM55.45mil. This followed the completion of its first property development project in Melaka, namely 99 Residences, which is now known as The Pines.
“Our first property development project collaboration with Malacca-based PTS Properties Sdn Bhd (PTS Properties), The Pines gave us a good kickstart as it’s a huge turnaround for us,” he added.
In the fourth quarter ended June 30, 2015, Yong Tai posted RM6.68mil net profit from a net loss of RM5.63mil a year ago. Revenue jumped 101.8% to RM21.85mil from RM10.83mil previously.
On the prospects for FY16, Ng expects the performance to remain favourable, anchored by the growth and contribution from its property development business segment.
The JV collaboration with PTS Properties to develop The Apple building would provide Yong Tai an entry into a lucrative property development project.
The Apple is a development project comprising a 16-storey four-star hotel known as “Courtyard by Marriott,” a 32-storey block of serviced apartments and the Podium.
The Apple is poised to become one of the iconic high-rise buildings in Malacca and will cater to the growing demand for four-star hotels in Malacca from visiting tourists. The Apple will have direct access to the Sungai Melaka Riverfront and shall have a spectacular view of the iconic “Kampung Morten.”
Yong Tai entered into five separate memorandums of understanding with the vendors of PTS Impression Sdn Bhd , Yuten Development Sdn Bhd, Terrawest Resources Sdn Bhd, Land & Build Sdn Bhd and Admiral City Sdn Bhd.
The MoUs would provide the company with five potential property development projects with a combined gross development value of RM7bil over the next eight years.
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