KUALA LUMPUR, Aug 24 — UEM Sunrise Bhd posted a net loss of RM93.36 million in the second quarter ended June 30, 2020, compared with a net profit of RM40.36 million in the same period a year earlier.
Revenue for the quarter declined significantly to RM111.96 million from RM1 billion year-on-year.
For the six-month period, the group recorded a net loss of RM115.29 million against a net profit of RM70.46 million, while revenue dwindled to RM307.81 million from RM1.42 billion a year earlier.
In a filing with Bursa Malaysia today, UEM Sunrise said the lower revenue for the six-month period was mainly due to the lower property sales, absence of major new property launches, and slower project progress completion, which is a direct impact of the curtailment in business activities as a result of the Movement Control Order (MCO).
It said the lower revenue, in addition to losses from foreign exchange and share of results of joint-venture companies including impairment of inventories, resulted in a net loss after non-controlling interests of RM115 million for the period.
“With the shutdown in business activities, our top line and bottom line were significantly affected. However, we remain focused on continuously strengthening our balance sheet and cash position,” managing director/chief executive officer Anwar Syahrin Abdul Ajib said.
He said as at June 30, 2020, UEM Sunrise has a cash balance of RM1.38 billion, with a low net gearing of 0.4 times.
“In the interim, we continue to be on a lookout for strategic landbanks and pursue disposals of non-strategic landbanks to raise additional cash,” he said.
Moving forward, he said the company remained cautious on the outlook and would exercise prudence in managing the challenging environment.
He said the company is targeting a gross development value and sales, including land sales, of RM1 billion each for the remaining of the year.
“We plan to launch around RM650 million worth of properties in Central (region) and RM350 million in Southern,” he added.
Year-to-date, UEM Sunrise has launched properties worth RM205 million while its unbilled sales as at June 30, 2020 stood at RM1.7 billion. — Bernama
