MKH Annual Report 2019

022 A N N U A L R E P O R T 2 0 1 9 For the financial year ended 30 September 2019, the Group’s revenue increased by 3.7% to RM1.12 billion (FY2018: RM1.08 billion) mainly due to higher recognition of revenue and profit from new and ongoing projects from property development and construction division. The Group’s profit before tax (“PBT”) increased by 23.5% to RM158.4 million (FY2018: RM128.2 million) which was mainly due to higher contribution from the property and construction division from its new and ongoing projects and following the adoption of Malaysia Financial Reporting Standards (“MFRS”) 15 Revenue from Contracts with Customers (“MFRS 15”), which resulted in legal fees and sales commission expenses progressively charged to income statement instead of immediately charged out as and when incurred previously. This Statement provides a discussion and analysis of the Group’s financial performance for the year ended 30 September 2019 (“FY 2019”), including explanations for significant fluctuations over the previous financial year. TheGroup’s principal business segments, which remained unchanged from the preceding year, comprise Property Development and Construction; Plantation; Hotel and Property Investment; and Others. The segment “Others” comprises Trading, Manufacturing, Investment Holding and other non-reportable operations. FY2019 FINANCIAL HIGHLIGHTS The Group’s revenue and profit before tax for the financial year under review and the preceding year are summarised as follows: In addition, the Group also recorded unrealised foreign exchange gains of RM14.0 million as compared to the preceding year unrealised foreign exchange losses of RM36.4 million for the plantation division following the strengthening of Indonesian Rupiah against its borrowings in United States (“US”) Dollar. Excluding the unrealised foreign exchange gains of RM14.0 million (FY2018: unrealised foreign exchange losses of RM36.4 million), the Group’s PBT was lower by 12.3% at RM144.4 million (FY2018: RM164.6 million) which was mainly due to lower average selling price for crude palm oil (“CPO”) and higher average production cost incurred from the plantation division, inclusion of loss on changes in fair value of investment properties totalling RM6.2 million (FY2018: RM317,000) from the 2019 RM’000 2018 RM’000 Changes (%) Group Revenue 1,121,657 1,081,701 3.7 Segments • • Property Development and Construction • • Plantation • • Hotel and Property Investment • • Others 775,923 229,762 31,192 84,780 702,687 263,197 32,957 82,860 10.4 (12.7) (5.4) 2.3 Group Profit Before Tax 158,373 128,232 23.5 Segments • • Property Development and Construction • • Plantation • • Hotel and Property Investment • • Others 122,239 5,936 1,784 28,414 76,565 11,961 11,761 27,945 59.7 (50.4) (84.8) 1.7 MANAGEMENT DISCUSSION and analysis report Our eco-themed township project, Hillpark @ Shah Alam North has a unique 60 acres of forest park which provides an affordable green living and create a sustainable living for residents.