The group’s domestic segment also recorded lower revenue due to lower sales and slower progress completion during the MCO
by FARA AISYAH/ pic by TMR FILE
PROPERTY developer UEM Sunrise Bhd is keeping an eye out for potential land acquisitions and disposals while strengthening its balance sheet, after operations in the second quarter ended June 30, 2020 (2Q20), were disrupted by pandemic containment measures.
The group posted a net loss of RM93.36 million in the 2Q, versus a net profit of RM40.36 million made last year, due to significantly lower revenue, costs of inventories written down and unfavourable share of results of joint ventures and associates.
Quarterly revenue plunged 89% to RM111.96 million from RM1 billion recorded the year prior, largely due to lower contribution from international projects.
The group’s domestic segment also recorded lower revenue due to lower sales and slower progress completion during the Movement Control Order (MCO) period and the completion of certain projects in the prior year.
UEM Sunrise MD and CEO Anwar Syahrin Abdul Ajib (picture) said the developer’s top line and bottom line were “significantly affected” with the shutdown in business activities amid the MCO.
“However, we remain focused on continuously strengthening our balance sheet and cash position. We had a cash balance of RM1.38 billion as at June 30, with a low net gearing of 0.4 times, reflecting our ability to settle current loan obligations when required.
“In the interim, we continue to be on the lookout for strategic land banks and pursue disposals of non-strategic land banks to raise additional cash,” he said in a statement yesterday.
Going forward, the developer plans to launch around RM650 million worth of properties in the central region of Malaysia and RM350 million in the southern region.
It also introduced a marketing campaign called The Happy Chase in conjunction with the 2020 Home Ownership Campaign, offering easy entry, waivers on legal fees, free home appliances and free kitchen cabinets for selected developments.
“These incentives together with current low borrowing costs will drive our sales for the remaining year.
“To date, we have secured total sales plus commitment of approximately RM500 million with Residensi AVA in Kiara Bay, Kuala Lumpur, capturing the highest interest, followed by Serene Heights Bangi and Senadi Hills,” Anwar Syahrin said.
The group targets a gross development value and sales — including land sales — of RM1 billion each for the remaining year.