Property development dragged Jaks Resources into the red in 4Q

KUALA LUMPUR (Feb 28): Jaks Resources Bhd slipped into the red with a net loss of RM24.03 million in the fourth quarter ended Dec 31, 2016 (4QFY2016), against a net profit of RM29.22 million a year earlier, due to losses in the property development and investment divisions.

The quarter’s losses pulled down the company’s annual net profit to barely RM736,000, lower by 98.2% from RM41.47 million the year before.

The group’s property development loss before tax widened substantially to RM20.2 million in 4QFY2016 compared with RM1.7 million in the previous corresponding quarter, due to competitive pricing, property market slowdown and higher operating and financing expenses after the opening of Evolve Mall.

Its quarterly revenue was up marginally by 1.6% to RM149.32 million from RM146.93 million, mainly contributed by its construction segment, which generated RM102.9 million.

This article first appeared in The Edge Financial Daily, on Feb 28, 2017.

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