Malaysia Pacific Corp losses widen in Q4

In a filing with Bursa Malaysia yesterday, the company said the losses were due to impairment of receivables and the provision of finance costs claimed by the purchaser of Wisma MPL, who paid the full settlement on behalf of the company to RHB Bank Bhd.

PETALING JAYA: Malaysia Pacific Corp Bhd (MPCB) has reported a wider net loss of RM6.63mil in its fourth quarter ended June 30 from RM4.84mil a year earlier.

In a filing with Bursa Malaysia yesterday, the company said the losses were due to impairment of receivables and the provision of finance costs claimed by the purchaser of Wisma MPL, who paid the full settlement on behalf of the company to RHB Bank Bhd.

Its revenue for the quarter declined by half to RM1.8mil compared to RM3.65mil a year ago due to slow construction progress for the joint-venture project.

To recap, the property development company sold its Wisma MPL in the Golden Triangle of Kuala Lumpur to Asia New Venture Capital Holdings Sdn Bhd for RM189mil in March 2019.

MPCB said it intends to utilise RM148.54mil of the sales proceeds to repay bank borrowings and the balance RM40.46mil to pay creditors and as working capital and estimated expenses.

Cumulatively, for the financial year ended June 30, 2021 (FY21), MPCB fell into the red, posting RM6.41mil in losses compared to a RM3.61mil profit in the same period last year.

Its revenue for the period was higher by 57.3% to RM10.49mil from RM6.67mil previously, thanks to an increase in the subscription rate.

Moving forward, MPCB expects the prospect for the current financial year to be challenging due to the global and local economy being deeply impacted by the Covid-19 pandemic.

“Sluggish property market conditions are to continue in 2021.

“And it is crucial to submit a comprehensive regularisation plan for Practice Note 17 (PN17), including to address the going concern issue,” the group said.

Towards this end, MPCB said on June 28 that TA Securities Holdings Bhd had submitted an application to Bursa Malaysia for a further extension of time up to March 31, 2022 to make the requisite announcement and to submit the company’s regularisation plan to the regulatory authorities.

The extension had been approved by Bursa Malaysia on July 29 for an extension of time up to Dec 31, 2021 for MPCB to make the requisite announcement and submit its regularisation plan to the regulatory authorities.

MPCB was classified as a PN17 company by Bursa Malaysia on Dec 1, 2014.

Among the concerns raised by its independent auditor include the group and company’s current liabilities having exceeded its current assets by RM142.44mil and RM9.22mil, respectively.