Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.
The Group derives revenue from construction and property development activities.
The Group achieved revenue of RM498.55 million and net profit before tax of RM75.17 million for the year ended 31 December 2016 as compared to previous year's figures of RM654.74 million and RM101.24 miliion respectively.
Revenue for the quarter under review is RM113.21 million, a decrease of 29% as compared to the preceding year corresponding quarter's figure of RM160.24 million. The construction segment contributed RM98.67 million (87%) whilst the property development segment registered a contribution of RM14.54 million (13%) to the Group's revenue during the quarter.
The net profit before tax of the Group for the current quarter is RM15.68 million, a decrease of 45% as compared to RM28.42 million for the preceding year's corresponding quarter.
The changes in revenue and net profit before tax were contributed by the following segments:
Construction segment: For the 3-month period ended 31 December 2016, the revenue and net profit before tax are RM98.67 million and RM11.74 million compared to the previous year's corresponding quarter figures of RM145.45 million and RM23.42 million respectively. The revenue for the current quarter has decreased by 32% as compared to the previous year's corresponding quarter while profit before tax has decreased by 50%. The lower revenue was mainly due to the lower progress claim of construction works due to the completion of certain major projects while new projects secured were still in start-up phases. The profit margin for the works executed during the period was also lower.
Property development segment: For the 3-month period ended 31 December 2016, the revenue and net profit before tax increased to RM14.54 million and RM3.94 million compared to the previous year's corresponding quarter figures of RM14.79 million and RM5.00 million respectively. Revenue recorded during the current quarter was comparable to that of 2015 while margin has decreased due to higher cost and the type/mix of properties sold.
The Group having successfully secured 2 major projects during the first quarter 2016 will continue to bid for projects that are related to our core business in infrastructure related works. This is done as part of its prudence project management strategies having considered the capacity of the Group to undertake further construction projects. The Sarawak Corridor of Renewable Energy (SCORE) initiative as well as the forces of industralisation and urbanization provides further contract opportunities for HSL in the key SCORE growth node towns of Tanjung Manis, Mukah and Samalaju and the major cities of Sarawak. HSL foresees the property development segment with a variety of products will make greater impact on the business of HSL Group in 2017.