This article first appeared in The Edge Financial Daily on January 17, 2018

KUALA LUMPUR: EcoWorld International Bhd (EWI) had achieved cumulative sales of RM7.7 billion from property development projects in the UK and Australia as at Oct 31, 2017.

They comprise RM7.57 billion contracts exchanged and reserved units worth RM147 million, the group said in a filing with Bursa Malaysia yesterday.

“Upon completion of the acquisition of a 70% equity stake in Be Living’s residential development business and the new project in Macquarie Park, EWI will have nine projects in the UK and three projects in Australia,” said EWI.

The group said its construction of all launched blocks is progressing well, and that it is on track to achieve its maiden handover of two blocks within its London City Island Phase 2 project and one block of the Embassy Gardens Phase 2 project in the current financial year ending Oct 31, 2018.

“At the same time, EWI is expected to generate operating revenue upon handover of the above residential units in the same financial year,” it said.

However, EWI said its accounting policy will only recognise revenue when the risks and rewards of the property sold have been fully transferred to the purchasers.

“Accordingly, we will not recognise any revenue from the property development projects or share of profits until the physical completion and handover of vacant possession of the projects,” the group said.

Bursa Malaysia has approved EWI’s application for a waiver from being classified as an affected listed issuer pursuant to Paragraph 8.03A(2)(b) of the listing requirements, which states that a listed issuer may not have adequate level of operations when its business generates revenue representing 5% or less of its share capital based on its latest annual financial statements.

The regulator has also approved a variation for EWI in respect of Paragraph 8.03A(7)(b)(i), which allows the group to include the revenue of its joint ventures proportionate to its holdings.