MKH Annual Report 2018

21 MKH Berhad Annual Report 2018 MANAGEMENT DISCUSSION AND ANALYSIS REPORT SEGMENT RESULTS ANDANALYSIS Property Development and Construction With 13 key projects located in Kuala Lumpur, Mon't Kiara, Kajang, Semenyih, and Puncak Alam to-date, this segment remains as one of the mainstays of the Group's operations with new sales garnered for FY2018 amounting to RM815.0 million (FY2017: RM808.1 million). Among which, our key projects, namely Hillpark @ Shah Alam North, Kajang 2 Precinct 2, and Inspirasi Mont'Kiara chalked up to RM627.6 million, representing 77% of total new sales for the year under review. Despite the slight increase in revenue for the current year of RM702.7 million (FY2017: RM702.5 million), this division recorded lower profit before tax of RM76.6 million in the current year (FY2017: RM137.8 million) due to competitive sales rebates o ered to purchasers for certain development projects and an inclusion of a land donation amounting to RM9.5 million for the establishment of a secondary school in the vicinity of our ongoing Kajang 2 township. As at 30 September 2018, the gross development value of six (6) ongoing projects amounted to approximately RM1.8 billion with unbilled sales totalling RM1.06 billion (FY2017: RM926.5 million), namely Saville @ D'Lake, Puchong, Hillpark @ Shah Alam North, Hillpark Residence, TR Residence @ Jalan Tun Razak, Kajang 2 Precinct 2 and Inspirasi Mont'Kiara. We had also handed over vacant possession of six (6) property development projects, namely Saville @ Kajang serviced apartment, Saville @ Cheras serviced apartment, Kajang East Precinct 2 double-storey terrace houses, Eugenia @ Hillpark 3 double- storey terrace houses, Maple @ Hillpark Shah Alam North (Phase 7) double-storey terrace houses and Hillpark Avenue @ Hillpark Shah Alam North (Phase 11A & 11B) shop-o ces. The Group is well-positioned to unlock the value of its existing development landbank in Kuala Lumpur, Kajang, Semenyih and Puncak Alam vicinities. Paired with good product design and strategic location essential lifestyle amenities, our ongoing projects recorded an average take-up rate of more than 83% to-date. Furnished show units are provided for customer viewing at each property sales gallery; from left: Inspirasi Mont'Kiara show unit at Old Klang Road Sales Gallery and Kajang 2 Precinct 2 show unit at Kajang 2 Sales Gallery