SINGAPORE (Feb 6): Property developer Capital World, formerly known as Terratech Group, saw its earnings jump 90.2% to 17.4 million ringgit ($5.9 million) for the 2Q ended December, from 9.2 million ringgit a year ago.
Revenue surged by 156% to 46.0 million ringgit in 2Q17, from 18.0 million ringgit a year ago.
The increase was mainly due to higher revenue recognition from the Capital 21 retail podium component and Capital Suites serviced suites component of the group’s mixed development in Johor, Malaysia, in line with higher percentage of works completed.
General and administrative expenses grew fivefold to 9.2 million ringgit in 2Q17, from 1.7 million ringgit a year ago.
This was mainly due to higher payroll related costs from additional headcount after its reverse takeover (RTO); additional depreciation and amortization expenses from upward adjustments on the fair value of plant and equipment as well as mining rights as a result of the RTO accounting in FY17; fees relating to the loans and borrowings secured in Nov 2017; and fees for liaising and sourcing tenants for the mall.
As at end December, cash and cash equivalents stood at 13.1 million ringgit.
Looking ahead, Capital World says it will remain focused on seeking business opportunities to form strategic partnerships and joint ventures with potential landowners and developers in Malaysia as well as in Southeast Asia.
“We are pleased that our continuous adoption of the joint venture business model has resulted in our stellar set of result for 2Q18 and 1H18, demonstrating the group’s strong execution capabilities,” says Siow Chien Fu, Capital World’s executive director and CEO.
“Project Capital City which is targeted to be completed in 2020 is well on schedule. We will remain committed in enhancing our profitability as well as our market competitiveness,” he adds.
Shares of Capital World closed half a cent lower, or down 6%, at 7.8 cents on Tuesday.
