MKH Annual Report 2020

17 MKH BERHAD 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 2020 (“FY2020”). FY2020 was a challenging year due to the outbreak of Coronavirus disease (“COVID-19”) pandemic which impacted the life and livelihood of everyone. Despite the challenges, our Group managed to post a respectable profit before tax of RM116.5 million for FY2020. Malaysia’s gross domestic product (“GDP”) is expected to grow between 6.5% and 7.5% in 2021 after a 4.5% contraction in 2020 owing to the COVID-19 pandemic. The stimulus packages implemented by the Government is expected to have spill over effects and provide an additional boost to the economy in 2021. For FY2020, the Group’s revenue decreased by 18.7% to RM911.9 million and profit before tax (“PBT”) decreased by 26.5% to RM116.5 million, which were mainly due to lower revenue and profit recognition from its Property Development and Construction Division, Hotel and Property Investment but offset with higher revenue and profit contribution from the Plantation 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 continues to leverage on strong demand for affordable housing emphasising on affordable pricing, good location and the right product mix. For FY2020, the Property Development and Construction Division recorded a lower revenue and PBT of RM561.8 million and RM73.8 million respectively due to the disruption of the physical construction work on ongoing development projects during the Movement Control Order (“MCO”) and Conditional MCO (“CMCO”) from 18 March 2020 to 9 June 2020. Chairman’s Statement Revenue RM911.9 million Profit before tax RM116.5 million