Sunway City Kuala Lumpur,25 August 2020
Sunway Berhad today announced its second quarter financial results for the financial year ending 31 December 2020. (“2Q 2020”).
The Group recorded a lower revenue of RM556.6 million in 2Q 2020 compared to RM1,077.2 million in 2Q 2019, primarily attributable to lower contributions from all business segments due to business disruptions caused by COVID-19 pandemic and the various phases of Movement Control Order (“MCO”). Despite the challenging landscape, the Group still managed to register a profit before tax (“PBT”) of RM10.1 million for the quarter ended 30 June 2020. This was achieved on the back of cost containment measures adopted by the respective business segments coupled with lower financing costs due to the several interest rate cuts by Bank Negara since the beginning of this year.
The quarter under review was significantly impacted by the enforcement of MCO from 18 March 2020 to 3 May 2020. All business operations were suspended with the exception of healthcare and retailers offering essential products and services. Majority of businesses resumed operations during the conditional MCO and recovery MCO from 4 May 2020. That said, hospitality and leisure businesses only resumed operations in early July 2020.
The Group has announced the proposed renounceable rights issue of new irredeemable convertible preference shares (ICPS) and the proposed sale of Sunway Pinnacle as part of its strategy to further strengthen its capital base in the face of uncertain times ahead as well as to capitalise on any attractive acquisition opportunities which may arise from the economic fallout of this pandemic crisis.
In a recent development, the healthcare segment has announced the proposed acquisition of a leasehold land in Kota Bharu measuring approximately 38,110 sq.m. for a purchase consideration of RM28.7 million. The proposed acquisition is in line with the Group’s overall strategy to expand its network of tertiary hospitals, in particular to locations where private healthcare is underserved. The expansion into Kota Bharu will be Sunway Healthcare Group’s maiden expansion into the East Coast Region. This will further enhance the Group’s portfolio of healthcare offerings.
Sunway Group Chief Financial Officer, Chong Chang Choong commented, “We remain cautious on the outlook amidst the uncertainties surrounding the domestic and global economic growth prospects as well as in the absence of a vaccine for the COVID-19. However, we expect our various business segments to recover, but it will be at a varying pace.”