KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) said property sales and bookings rebounded after business resumed on May 4 under the conditional movement control order (CMCO).
"Within the first six weeks of the CMCO up to June 15 we managed to achieve more than RM1bil in sales and bookings across our various projects located in the Klang Valley, Iskandar Malaysia and Penang,” President & CEO Datuk Chang Khim Wah said in a statement today.
The signing of an agreement between BBCC Development Sdn Bhd and Mitsui Fudosan (Asia) Malaysia Sdn Bhd on June 10 to form a joint-venture company (MFAM JVCo) to purchase a serviced residence block in the BBCC development for RM242mil also contributed to the strong sales achieved.
"As at June 15, EcoWorld Malaysia’s sales for FY2020 have reached RM975mil. This enabled its future revenue position to remain high at RM4.6bil," the company said in the statement.
"In addition, the Group has a further bookings pipeline of approximately RM600mil which it is working to convert into secured sales over the next few months."
Meanwhile, construction works which had to be halted temporarily during the MCO have also fully resumed on all its project sites since mid-June.
EcoWorld Malaysia posted a net profit of RM21.4mil on revenue of RM345.4mil in the second quarter ended April 30.
"Whilst the Group’s financial results for the first half of 3Q 2020 (May – mid-June) will continue to be impacted by the MCO site closures, revenue and profit recognition for the 2nd half of 3Q (mid-June – July) & 4Q 2020 are expected to be back on track as EcoWorld Malaysia’s healthy future revenue position is progressively translated into earnings," the company said.
On a another development, Eco World International Bhd recorded a profit after tax of RM20.5mil in the second quarter against a loss before tax of RM11.6mil a year ago.
"This is mainly due to completion and handover of higher numbers of units sold to customers, as well as revenue and profit recognition of EcoWorld London’s Built-to-Rent (BtR) sales," it said.
EcoWorld International’s sales improved in 2Q 2020 despite various Covid-19 measures imposed in both the UK and Australia.
Sales momentum gained further strength in the first six weeks of 3Q 2020, bringing total year-to-date sales as at June 15 to RM808mil.
Did you find this article insightful?
50% readers found this article insightful