IOI Properties Q2 Revenue Increases Acrosss Segments, Howevere Profits Impacted By Loss In Xiamen Mall

IOI Properties Group Berhad saw its revenue increase by 19% to RM704.8 million in the second quarter ended 31 December 2021 compared to the preceding year corresponding quarter, with improved financial performance across all its business segments in property development, property investment, and hospitality and leisure.

The Group achieved RM125.3 million in net profit in the same quarter, after taking a fair value loss of RM98.4 million attributed to IOI Mall, Xiamen. Otherwise, the Group’s profit before taxation of RM331.3 million in Q2 FY2022 is 21% higher than the preceding year’s corresponding quarter.

Revenue and operating profit for the property development segment increased by 15% to RM571.6 million and by 7% to RM206.5 million respectively in Q2 FY2022 compared to the preceding year’s corresponding quarter. This was contributed by higher sales from operations in Malaysia, driven by dynamic sales and marketing campaigns as well as the extension of the Home Ownership Campaign.

The Group’s financial performance of its property investment segment has improved after the Movement Control Order in Malaysia was lifted and lower rental relief assistance was given to tenants. This was also due to the commencement of recurring leasing income from IOI Mall, Xiamen. This resulted in higher revenue of RM96.7 million and operating profit of RM49 million in Q2 FY2022, which constituted an increase of 31% and 57% respectively compared to the preceding year’s corresponding quarter.

For the hospitality and leisure segment, revenue surged 57% to RM33.1 million, and operating loss reduced by 84% to RM1.2 million.

Chief Executive Officer Dato’ Voon Tin Yow said the Group will continue to bank on its digital marketing capabilities and aggressive campaigns to boost sales of its mid-priced range of products in the property development segment.

Meanwhile, to mitigate the impact in rising cost of building materials, IOIPG has formed a new business unit mainly involved in sourcing and supplying building materials.

In the international front, the on-going construction of IOI Palm International Parkhouse Xiamen, China is due for completion in Q2 FY2023. Together with IOI Palm City, both these residential developments will contribute to the Group’s financial performance in the coming quarters. IOIPG has widened its footprint in Singapore with the recent acquisition of a new development site at Marina Bay.

Source: Business Today