Titijaya Land says booked RM14m impairment from unit's winding up in 4QFY2023

• Titijaya Land said the winding-up of Renofajar will not cause a material financial impact on the group due to the unit’s insignificant contribution to its financial performance ― having contributed 1.92% of the group’s FY2022 revenue.

KUALA LUMPUR (Sept 5): Titijaya Land Bhd said it recorded a RM14 million impairment loss in the fourth quarter ended June 30, 2023 (4QFY2023), as a result of its indirect wholly-owned subsidiary Renofajar Sdn Bhd being wound-up.

“An impairment loss of RM14 million arising from investment in Renofajar was provided for in the 4QFY2023 announcement made on Aug 30, 2023,” the property developer said in a bourse filing.

According to a prior filing, Renofajar received a winding-up order dated August 4 issued by the High Court of Sabah and Sarawak on Aug 28.

Titijaya Land said the winding-up of Renofajar will not cause a material financial impact on the group due to the unit’s insignificant contribution to its financial performance ― having contributed 1.92% of the group’s FY2022 revenue.

“As Renofajar is not a substantial subsidiary of the group, the operation of the group will not materially be affected by the winding up of Renofajar,” it added.

For 4QFY2023, Titijaya Land posted a higher net loss of RM14.31 million versus RM4.4 million in the same quarter a year earlier, despite a 71.41% increase in revenue to RM115.53 million from RM67.4 million previously.

It attributed the net loss to higher additional costs due to reclassification of financial instruments which were adjusted in the current quarter.

Also listed was a RM14 million impairment loss arising from both inventories of property held and completed units due to lower market value.

It is worth noting that Titijaya’s 4QFY2023 announcement made no mention of Renofajar’s winding-up nor its related RM14 million impairment loss.

Renofajar was wound up following a petition by Chia Wai Hing, who sought the return of money paid due to failure to deliver vacant possession of the parcel unit purchased from Renofajar within the time prescribed, and for liquidated damages.

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