KUALA LUMPUR: I-Bhd posted lower net profit and revenue in the second quarter ended June 30,2020 due to the impact from the movement control order (MCO) and soft property market conditions.
It said on Friday its 2Q FY20 profit after tax was RM500,000 on a revenue of RM11.20mil as compared with profit after tax of RM11.5mil and revenue of RM42.2mil a year ago.
“The group’s current quarter has been impacted by Malaysia’s enforcement of the MCO on March 18 and lower unbilled sales owing to the absence of new launches due to the prolonged control order rulings and soft property market conditions,” it said.
I-Bhd said its property development segment continues to be a notable contributor to the group, earnings-wise, though the property investment segment is envisaged to start delivering sustainable results in the coming years.
The company said it would focus on building its property investment portfolio to enjoy strong, recurring and less fluctuating income streams despite the longer gestation period, exacerbated by the current operating climate.
Its 40% investment in the Central i-City Mall impacted the group with a loss of RM4.2mil in 2Q which would have otherwise seen the group reporting a RM4.7mil profit despite all the challenges posed by the Covid-19 pandemic.
I-Bhd also said the group’s first GBI-rated corporate office tower equipped with artificial intelligence (AI) and direct connectivity with dual-fibre routes to the data centre in i-City providing 400Gbps capable network to its business users has just been completed.
The group is investing in DoubleTree by Hilton hotel, which is expected to open its doors in the second half of 2021, and a second convention centre. These will strengthen the group’s asset base and start to contribute financially in the coming years.
I-Bhd also said the group's development goal for i-City was to enhance its earnings but also to create a space with endless possibilities for communities to thrive in and experience technology at a touch of the fingertips.
"In pursuit of new project launches within i-City, the group will focus on enhancing and extracting full value from its development with sustainable future growth underpinned by the remaining 60% GFA of project yet to be developed.
“We envisage that the continued adoption of digital technology will help us expedite our goals by using digital technology as a competitive edge in marketing i-City.
“Continued investment in digital technology and digitisation as part of the group’s long-term strategies will also strengthen our project portfolio within i-City, Selangor’s Golden Triangle, ” said I-Bhd chairman Tan Sri Lim Kim Hong.
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