Detailed analysis of the various business segments are as follows: Property Development & Property Management The property business remains the foundation of the Group9s operations, serving as the primary driver of our endeavours. Our portfolio encompasses a diverse range of township developments across various regions, demonstrating our commitment to excellence and innovation. The property development and property management segments generated revenue of RM1,228.1 million for the full financial year, representing an increase of 6.9%, or RM78.9 million, from RM1,149.3 million in FY2023. This segment reported a lower loss of RM19.7 million compared to a loss of RM51.1 million in FY2023. The higher segmental revenue in FY2024 was mainly due to healthy sales across new and ongoing projects, coupled with continued revenue recognition from unbilled sales. In addition, the loss recorded in the current year was mainly due to losses incurred from the disposal of two parcels of development land for RM152.4 million, which resulted in provisions for foreseeable losses amounting to RM50.1 million. Overall, this segment continued to be the main contributor to total Group revenue at 87.3%. Property Investment, Recreation & Resort The Group9s revenue from the property investment, recreation, and resort segment stood at RM157.3 million compared to RM251.3 million in FY2023, representing a decrease of RM94.0 million or 37.4%. The decline in revenue was mainly due to the absence of revenue following the completion of divestments of investment properties during the current ûnancial year. This segment reported a higher loss of RM261.5 million compared to a loss of RM58.5 million in FY2023, primarily due to a one-oû impairment loss recognised on an investment property. Excluding this impairment, this segment would have recorded a signiûcantly lower loss of RM7.0 million for FY2024. Overall, the base earnings from this segment continued to remain at sustainable levels, supported by recurring income from its investment properties. Investment Holdings & Others The Group9s revenue from this segment was RM22.1 million in FY2024 compared to RM92.5 million in FY2023, reflecting a decrease of RM70.4 million or 76.1%. The revenue from this segment continued to remain sustainable, mainly contributed by subsidiaries such as Tropicana Building Materials Sdn Bhd and Tropicana Innovative Landscape Sdn Bhd. This segment reported a lower proût of RM16.0 million compared to RM76.1 million recorded in FY2023, primarily due to the loss of income contribution from the school operations following the completion of the disposal. GROUP CAPITAL STRUCTURE FY2024 FY2023 RM'000 RM'000 Shareholders' Equity 4,113,481 4,303,193 Total Equity 5,381,931 5,806,685 Gross Borrowings 2,310,803 3,161,026 Cash and Bank Balances 696,360 500,502 Net Borrowings 1,614,443 2,660,524 Gross Gearing ratio 0.43 0.54 Net Gearing ratio 0.30 0.46 Net Assets Per Share (RM) 1.67 1.90 Overall, the Group9s balance sheet as at 31 December 2024 remained robust, with total cash and bank balances and total equity of RM696.4 million and RM5,381.9 million respectively. The Group is well-positioned to continue executing its planned growth strategies. In FY2024, the Group further reduced its borrowings by RM850.2 million, bringing down the gross gearing ratio to 0.43x from 0.54x in FY2023, as well as achieving a lower net gearing ratio of 0.30x compared to 0.46x as at 31 December 2023. Despite the challenges posed by rising construction costs and supply-demand imbalances, the Group maintained its resilient performance for FY2024 through the successful monetisation of several parcels of non-strategic land and the implementation of cost optimisation initiatives. The Group is expected to improve its performance in FY2025 amidst a more challenging business environment, supported by the momentum built from its strong performance in FY2024 and the various pipelines of ongoing projects. While prospects for the property sector remain challenging in the short term, the Group believes that there will continue to be demand for properties in prime locations that oûer superb amenities and competitive pricing. 74 ANNUAL REPORT 2024
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