Yong Tai net loss swells in 4QFY22 due to whopping RM113.1 mil impairment

• Yong Tai explained that the massive FY22 net loss of RM346.7 million was mainly because of the impairment loss of RM311.63 million.

KUALA LUMPUR (Aug 26): Yong Tai Bhd's net loss swelled to RM135.34 million in the fourth financial quarter ended June 30, 2022 (4QFY22), mainly due to an impairment loss of RM113.1 million.

As a result, loss per share ballooned to 9.65 sen in 4QFY22 from 0.76 sen in 4QFY21.

Quarterly revenue, however, soared 47.5% to RM46.24 million from RM31.35 million, mainly due to higher revenue from property development business, supported by revenue contributions from a completed project as well as ongoing projects.

The Melaka-based company concluded the financial year ended June 30, 2022 (FY22) with a whopping net loss of RM346.7 million, from RM8.29 million in FY21.

Yong Tai explained that the massive FY22 net loss of RM346.7 million was mainly because of the impairment loss of RM311.63 million. Of the total impairment loss booked, RM115.34 million arose from hotel building recognised upon completion of construction, another RM140.44 million was recorded in relation to the Encore Melaka theatre, and the remaining RM55.85 million was for inventories and other receivables of the group.

Additionally, Yong Tai saw all its business segments bleed.

Full-year revenue declined 37.19% year-on-year to RM71.78 million in FY22 from FY21's RM114.29 million.

Moving forward to FY23, the group said its strategy is to stay focused on completing all of its ongoing development projects, namely Amber Cove, on track to see completion and delivery of vacant possession by the fourth quarter of 2022, and Impression U-Thant, on track to see completion and delivery of vacant possession by the first quarter of 2023.

Its property development had an unbilled revenue of RM206 million as at June 30, 2022, which would provide earnings visibility for the group over the next two financial years, it noted.

Overall, the group expects the business environment to remain challenging in FY23.

Shares in Yong Tai closed unchanged at 26 sen on Friday (Aug 26), giving it a market capitalisation of RM74 million.