The developer saw its revenue for the quarter jumped to RM592.71mil against RM463.51mil previously.
Eco World said the percentage increase in net profit was significantly higher than the percentage increase in revenue mainly due to the inclusion of a gain of RM94.8mil which arose from the application of FRS 10 - Consolidated Financial Statements to recognise the impact of the change in the group’s interest in Paragon Pinnacle from a 100% subsidiary to a 60% joint venture.
This took place following the subscription by the Employee Provident Fund (EPF) of 40% of Paragon Pinnacle’s enlarged share capital pursuant to the terms of the subscription and shareholders’ agreement between the parties.
Eco World said in the case of Paragon Pinnacle, the successful launch of Eco Grandeur, the development activities and other work performed since the acquisition of the land in Ijok have substantially enhanced the fair value of its underlying assets.
Accordingly, the value of the group’s retained 60% equity interest in Paragon Pinnacle has increased, resulting in the gain being recorded on the day the dilution took place.
“Excluding the gain on dilution of equity interest in Paragon Pinnacle, the profit after tax for the current financial period was RM21.4mil, which is 3.4% higher than the RM20.7mil reported in 1Q2016,” Eco World said in the notes accompanying its financial report.
The developer said the group achieved sales totalling RM849.6mil from its Malaysian projects in the first quarter of FY2017 as compared to RM410.7mil in the first quarter of FY2016.
“As at Feb 28, 2017, year-to-date group sales reached RM955mil which is 57% higher than the RM607.8mil in the first four months of FY2016. RM797mil came from projects in the Klang
Valley, RM140mil came from projects in Iskandar Malaysia and the remaining RM18mil was contributed by projects in Penang,” Eco World said.
It added that the significantly higher sales numbers represent the strong follow-through momentum from the group’s mega-launches in the final quarter of FY2016.
Three of the projects launched, namely Eco Grandeur, Eco Ardence and Bukit Bintang City Centre contributed RM718mil in current year sales up to Feb 28.
Eco World’s board believes the company was on track to achieve its sales target of RM4bil sales in Malaysia for FY 2017.