KUALA LUMPUR (Jan 27): Guocoland (Malaysia) Bhd said its net loss for the second quarter ended Dec 31, 2020 narrowed to RM11.37 million, from RM14.85 million a year ago, on lower expenses and finance costs.
Revenue for the quarter increased 1.26% to RM91.32 million from RM90.19 million previously, the property development arm of Hong Leong Group said in a filing today.
The group said it incurred lower selling and marketing expenses by RM4.1 million compared with a year ago, mainly due to lesser sales and marketing activities on its ongoing projects as a result of the Movement Control Order.
The administrative expenses, meanwhile, reduced by RM2.4 million due to lower staff expenses and lower maintenance charge expenses, it said.
In addition, the finance costs incurred by the group fell following a reduction in borrowing as well as the reduction in interest rate by Bank Negara Malaysia, it added.
Guocoland said net loss for the cumulative six months ended Dec 31, 2020 narrowed significantly to RM2.82 million, from RM24.85 million in the previous corresponding period.
Half-year revenue increased 31.59% to RM182.26 million from RM138.51 million.
Noting that the Covid-19 pandemic continues to have a profound impact across the global business activities and the Malaysian economy, the group said: "The unprecedented situation has caused the market to be challenging. With the weak consumer sentiments, the market is expected to remain lacklustre in financial year 2021.
"Moving forward, the group will continue to focus on monetising its inventories and timely completion of its development projects. New product launches will be phased according to prevailing market sentiments," it added.
Guocoland's share price fell one sen or 1.61% to 61 sen, valuing the group at RM427.28 million. The counter saw 335,600 shares traded.