Profit before tax for the FY2021 was RM15.6 million, representing improvement of RM48.1 million as compared to loss before tax of RM32.5 million recorded in preceding year. This improvement was mainly due to improved performance by manufacturing and property development divisions during the current financial year. Other than improvement of operating results, the Group recognised a lower impairment losses on goodwill and other assets of RM21.6 million in current year as compared the preceding year of RM44.0 million. Our retail division recorded a one-off recognition of reversal of lease liabilities and provision for restoration costs of RM11.9 million arising from early termination of lease and decrease in operational expenses during the financial year 2021. This was partially offset by the loss on disposal of the security brokerage business during 2021 of RM5.2 million. FINANCIAL REVIEW & REVIEW OF STRATEGIES BY SEGMENT Property Development and Construction Property development and construction division recorded revenue of RM55.0 million, which is RM41.5 million lower than RM96.5 million recorded in FY2020. The lower revenue is mainly due one-off realisation of previously unrealised construction revenue of RM80.5 million for Picasso Residence in the preceding year. The property development and construction division recorded profit before tax for FY2021 of RM10.7 million was an improvement by RM14.9 million as compared to loss before tax of RM4.2 million recorded in the preceding year. Our Embayu Project progress was affected by the Movement Control Order (“MCO”) implemented during June to August 2021. Our project team has been working hard to catch up the progress with the expectation to deliver the project on time to purchasers by 2023. During the year, the Tower C of Embayu Project was launched and received overwhelming responses. Our Embayu Project achieved encouraging sales of 61.2% as at year end. Agriculture The revenue for agriculture division for FY2021of RM2.2 million is higher than FY2020 by RM1.3 million, mainly due to higher sales volume of 1,282 ton during the period (2020: 612 ton). The loss before tax of RM1.9 million from agriculture division for FY2021 is improved by RM0.4 million as compared to FY2020 mainly contributed by higher sales of teak wood in FY2021. Harvesting activities were at standstill during the implementation of MCO most part of the year and affected the sales in FY2021. Management Discussion and Analysis 15 P R G H O L D I N G S B E R H A D A N N U A L R E P O R T 2 0 2 1 (cont’d) higher than financial year ended 2020 by RM1.3 million RM2.2 million revenue for agriculture division
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