Property developer EcoFirst Consolidated Bhd posted a net loss of RM5.5 million for the third quarter ended Feb 29, 2024 (3Q24), widening its nine-month net loss to RM28.9 million.
In the same quarter, the Kuala Lumpur-based group saw its revenue jump more than 10 fold to RM45.3 million on the back of sales generated from the work done on a property development project (KL-48) launched in May 2023.
In an exchange filing on Friday, EcoFirst said as at 3Q it achieved 67% sales conversion rate, contributing more than 80% of the total group’s revenue for the current financial period, which stood at RM77.9 million for the first nine months.
KL48 sits on a 4.18-acre freehold land in Chan Sow Lin, Kuala Lumpur. Due for completion in the second quarter of 2027, it comprises two 47-storey building towers and nine retail units, featuring 1,700 units of serviced apartments.
The project was aimed at those looking for an urban lifestyle, proximity to Kuala Lumpur city Centre and freehold status, said EcoFirst CEO Datuk Tiong Kwing Hee last year.
EcoFirst posted a gross profit of RM12.2 million in 3Q24 on the back of contribution from the KL-48 project.
However, it said the quarterly net loss was mainly due to a provision made to write down the market value of an asset for RM15.18 million during the current financial period as a result of unfavourable market conditions coupled with certain costs incurred to enhance the inhouse project management, sales and market capabilities of the group to manage existing and future projects which have been expensed off to the income statement during the current financial period.
For the financial year ended May 31, 2023 (FY23), EcoFirst posted a net profit of RM13.4 million on a turnover of RM29.5 million compared to a net loss of RM9.8 million on a turnover of RM24.0 million in FY22. – TMR
Source: The Malaysia Reserve
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