MKH Annual Report 2019

023 M K H B E R H A D MANAGEMENT DISCUSSION AND ANALYSIS REPORT Net cash generated from/ (used in) 2019 RM’000 2018 RM’000 Changes (%) Operating activities 250,579 97,384 157.3 Investing activities (58,431) (66,593) 12.3 Financing activities (13,308) (72,423) 81.6 Increase/ (Decrease) in cash and cash equivalents 178,840 (41,632) 529.6 For FY2019, the Group recorded vast improvement in cash flows from operating activities following the handing over of vacant possession (“HOVP”) of The Pinang and The Palm (phase 1A & 1B1) @ Hillpark Shah Alam North and Saville @ D’Lake Puchong. The cashflows used in investing activities was also reduced with lower upfront development expenditure incurred in land held for property development. The cashflows used in financing activities was also reduced significantly following a net drawdown of bank borrowings totalling RM11.8 million in FY2019 as compared to a net repayment of bank borrowings totalling RM92.2 million in FY2018. hotel and property investment division and impairment loss on trade and other receivables totalling RM5.3million (FY2018: RM78,000) from the property development and construction and trading divisions. Further details of the Group’s financial performance are discussed in the segments below. LIQUIDITY AND CAPITAL RESOURCES During FY2019, the cash and cash equivalents of the Group increased significantly by RM178.8 million to RM374.1 million as at 30 September 2019 (FY2018: decreased by RM41.6 million to RM194.7 million as at 30 September 2018), which was culminated from the following cash flows activities: The oil palm plantation in Kalimantan.