Hatten Land's 3Q net loss narrows to RM13.2m on absence of one-off RTO expenses

PETALING JAYA (May 11): Hatten Land saw a net loss of RM13.2 million in 3Q18 ended March compared to a net loss of RM72.5 million a year ago in 3Q17 when the group reported a one-off expenses of RM87.8 million relating to the reverse takeover of VGO Corporation, according to a report from The Edge Singapore.

Revenue for 3Q18 fell 48.1% to RM85.5 million owing mainly to lower revenue recognised for Hatten City Phase 2 and lower sales from Hatten City Phase 1 in 3Q18.

The revenue decline was partially offset by the higher revenue contribution from the Harbour City and Satori projects.

Gross profit was RM4.3 million for the 3Q18, 91.3% lower than the same quarter a year ago. The drop in gross profit was mainly due to the additional estimated borrowing costs of RM17.7 million charged out to income statement for Hatten City Phase 2, reported The Edge Singapore.

The group also recorded other income of RM4.7 million, RM2.9 million higher compared to a year ago owing mainly to the increase in unrealised forex gain resulting from the strengthening of the Malaysian ringgit in 3Q18 and higher interest income from late payment interest on purchasers.

Selling and distribution expenses decreased 25.4% to RM12.9 million owing mainly to lower sales and marketing expenses for Hatten City Phase 1. General and administrative expenses went up 47.4% to almost RM11 million reported the Singapore weekly.

As at March 31, Hatten Land’s unbilled sales of development properties came to RM866.1 million. With the expected completion of Hatten City Phase 2 in 4Q18, some of the unbilled sales are expected to be converted into billings.

Shares in Hatten Land closed 0.2 cent lower at 16 cents on Wednesday. — The Edge Singapore

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