MKH Annual Report 2017

21 MKH Berhad • Annual Report 2017 Management Discussion and Analysis Report The movements in cash and cash equivalents are due to the following: • The reduction of cashflows from operating activities was largely due to the decline in Group pre-tax profit, exacerbated by the timing of payment of trade and other payables; • The increase in cashflows from investing activities was due to the acquisition of a subsidiary in the last financial year amounting to about RM4.1 million – there was no such acquisition this year; and • The significant hike in financing activity cashflows was mainly due to net proceeds received from the issuance of shares and warrants during the year amounting to RM 105.3 million to fund working capital and retire borrowings. The Group’s capital resources comprise primarily of cashflows generated by operating activities, cash and cash equivalents, term deposits, fixed income funds and available lines of credit. As at 30 September 2017, the Group’s net gearing stood at 0.34 times compared with 0.42 times in the preceding year largely due to the injection of fresh funds from share capital and warrants issuance as well as prudent cashflow management. The Group continues to maintain a prudent approach towards managing its capital resources to ensure their adequacy in meeting operational requirements and capital expenditure from time to time. Malaysia’s MKH was once again recognised as one of Top 30 Property Developers at the annual The Edge Malaysia’s Property Excellence Awards 2017 TR Residence is an integrated high rise development situated near Titiwangsa LRT, Monorail and upcoming MRT station Hillpark Residence is an ongoing development in Kajang that comprises serviced apartments and retail units Artist’s Impression Artist’s Impression