The drop is attributable to the lower sales from the group’s existing projects 

by FAYYADH JAAFAR / TMRgraphic

PROPERTY developer UOA Development Bhd has reported RM121.1 million in revenue for second quarter ended June 30, 2022 (2Q22). This was a decline of RM95.2 million compared to RM216.3 million revenue registered in 2Q21.

The group’s profit after tax and minority interests for 2Q22 was RM45.3 million, compared to RM54.4 million recorded in 2Q21.

According to the group’s filing to Bursa Malaysia, the decrease in revenue and gross profit was mainly due to lower sales from the existing projects.

“The group’s revenue and profit attributable to the company for the quarter under review were mainly derived from the progressive recognition of the group’s ongoing development projects, namely The Goodwood Residence, Aster Green Residence and Laurel Residence, and the sales of stocks mainly from United Point Residence, Sentul Point Suite Apartments and South Link Lifestyle Apartments,” the company said in its filing.

On Dec 31, 2018, two of the company’s wholly owned subsidiaries were served by the Inland Revenue Board of Malaysia (IRB) with notices of additional assessment for additional income tax totalling RM25.56 million and penalties totalling RM14.1 million.

“The directors opined that no provisions in respect of the tax liabilities and penalty in dispute are required to be made in the financial statements as at the reporting date. Windsor and Sunny have filed their appeals with the Special Commissioners of Income Tax and are in negotiations with IRB to reach a settlement,” the company said.

Meanwhile, the group’s profit before tax of RM62.6 million for 2Q22 was higher than 1Q22 of RM38.2 million.

The increase in profit was mainly due to higher progressive recognition from The Goodwood Residence, which was completed during the quarter, and from Laurel Residence.

To further enhance its property development business, UOA will continue to explore strategic development lands that meet the objectives of the group.