MKH Annual Report 2019

017 M K H B E R H A D 017 M K H B E R H A D Dear Shareholders, On behalf of the Board of Directors and the management, it is my great pleasure to present to you the Annual Report of MKH Berhad (“MKH”, or “the Group”) for the financial year ended 30 September 2019 (“FY2019”). The Malaysian economy remained resilient although gross domestic product (“GDP”) moderated to 4.4% for the third quarter of 2019 (Q2 2019: 4.9%) mainly due to lower growth in key sectors and a decline in the mining and construction activities. For FY2019, the Group recorded a commendable performance, building on our strong vision and mission. The Group’s revenue increased by 3.7% to RM1.12 billion and profit before tax (“PBT”) increased by 23.5% to RM158.4 million, which were mainly contributed by the Property Development and Construction Division. A more detailed review of the Group’s performance is covered under the section on “Management Discussion and Analysis Report” in this Annual Report. The Group continue to leverage on strong demand for affordable housing emphasising on affordable pricing, good location and the right product mix. In FY2019, the Group launched a total of three (3) new projects namely Kajang East Precinct 1, MKH Boulevard 2 and Nexus @ Kajang and these 3 new projects have contributed 64% of the total FY2019 new sales of RM823.5 million. In line with the rising trend of transit-oriented urban development model (“TOD”), MKH has been developing TOD projects that are well-located along the Klang Valley transit system such as Saville @ Cheras (completed project), MKH Boulevard 2 and Nexus @ Kajang (ongoing projects) and the upcoming Nexus @ Taman Pertama in Cheras and TR2 Residence @ Jalan Tun Razak, Kuala Lumpur. As at 30 September 2019, the Group recorded an unbilled sales of RM1.12 billion that is mainly attributable to new and ongoing property projects namely Kajang East Precinct 1, MKH Boulevard 2, Nexus @ Kajang, Bandar Teknologi Kajang shops, TR Residence @ Jalan Tun Razak, Inspirasi Mont’ Kiara, Hillpark @ Shah Alam North, Kajang 2 Precinct 2 and Hillpark Residence. In recognising the importance of innovation in value creation for our businesses, our oil palm plantation located in East Kalimantan, Indonesia continue to expand on the use of mechanical-assisted collection of fresh fruits bunches to increase productivity. The announcement by the Indonesian Government on the shifting of the administrative capital of Indonesia to East Kalimantan have a positive effect as it will accelerate the economic and infrastructure development in East Kalimantan where our plantation is located.