MKH Annual Report 2018

15 MKH Berhad Annual Report 2018 CHAIRMAN’S STATEMENT The Malaysian economy remained resilient with a gross domestic product (“GDP”) growth of 4.4% for the third quarter of 2018 (Q2 2018: 4.5%) despite global headwinds, mainly driven by expansion in domestic demand and private sector expenditure amid a decline in net export growth. FY2018 was a significant year for us as we embraced and emphasised on innovation to create sustainable value for our stakeholders. Our e orts was reflected in the Group's turnover of RM1.08 billion and profit before tax of RM126.7 million, which were mainly contributed by Property Development and Construction Division as well as 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. Our Property Development and Construction Division was kept busy throughout the year in completing and progressively handing over of more than 1,600 units of residential homes and shop-lots for six (6) property projects with a total gross development value ("GDV") of RM954 million. At the same time, we maintained a commendable take-up rate of more than 83% on average for our ongoing projects. Among the completed projects, Maple @ Hillpark Shah Alam North marked our first landed residential development built using the pre-fabricated Industrialised Building System adopted through our associated joint venture company, Panasonic Homes MKH Malaysia Sdn Bhd. In addition, Saville @ Cheras serviced apartment represents our first transit-oriented development that is directly integrated to the Sri Raya MRT station in Cheras via a 7-metre sheltered link bridge to enhance residents' convenience. Adding to our project portfolio in the Greater Kuala Lumpur, we have launched Inspirasi Mont'Kiara that o ers a ordable boutique serviced apartments in the a uent Mon't Kiara. RM 1.08 billion In the year under review, MKH recorded a revenue of mainly driven by its Property Development and Construction Division as well as Plantation Division 17-storey mixed development Saville @ Kajang comprising serviced apartments and shop-o ces was completed in December 2017 Lorries filled with fresh fruit bunches in queue to drop o fresh fruit bunches at our crude palm oil mill