Quarterly Report For The Financial Period Ended 30 June 2018
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Condensed Consolidated Statements Of Profit Or Loss
And Other Comprehensive Income
For the quarter ended 30 June 2018
Condensed Consolidated Statements Of Financial Position
as at 30 June 2018
Review of Performance
The Group derives revenue from construction and property development activities.
Revenue for the quarter under review is RM154.25 million, an increase of 103% as compared to the preceding year corresponding quarter’s figure of RM75.90 million (after restatement of preceding year’s figure in line with new accounting policies adopted). The construction segment contributed RM138.69 million (90%) whilst the property development segment registered a contribution of RM15.56 million (10%) to the Group’s revenue during the quarter.
The net profit before tax of the Group for the current quarter is RM18.85 million, an increase of 44% as compared to RM13.12 million (as restated) 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 30 June 2018, the revenue and net profit before tax are RM138.69 million and RM13.33 million compared to the previous year’s corresponding quarter figures of RM59.15 million (as restated) and RM7.26 million (as restated) respectively. The revenue for the current quarter has improved by 134% as compared to the previous year’s corresponding quarter while profit before tax has increased by 84%. This was mainly due to higher construction activities carried out during the quarter.
Property development segment: For the 3-month period ended 30 June 2018, the revenue and net profit before tax are RM15.56 million and RM5.52 million compared to the previous year’s corresponding quarter figures of RM16.75 million and RM5.86 million respectively. Revenue recorded during the current quarter was slightly lower compared to 2017 due to the timing of sales recognised while profit margins remained stable.
Current Year Prospects
With a record order book of RM3.1 billion of which some RM2.5 billion is unbilled, the Group continues to be busy on work execution. There has been an increase in the construction activities which has translated into higher revenue since the Fourth Quarter 2017. Revenue growth has been registered in both its construction and property development sector in the second quarter of 2018 and such trend is expected to continue. Overall profit margin has improved compared to that of 2017. The Group remains competitive in our tendering and project procurement will continue to be undertaken in line with our prudent project management strategies, taking due consideration of the capacity and capabilities of the Group vis-a-vis the rising needs for developments in the State. HSL foresees the property development segment, with a variety of products on offer, will make a greater impact on the business of HSL Group in 2018 and beyond.