SINGAPORE (THE BUSINESS TIMES) - Catalist-listed developer Hatten Land, which is diversifying into digital businesses such as cryptocurrency mining, saw its third-quarter net loss narrow on stronger revenue.
Losses came to RM32.5 million (S$10.3 million) for the three months to Mar 31, 2022, compared with RM36.8 million in the year-ago period, according to results last Saturday (May 14).
Revenue rose by 26.4 per cent year on year to RM18.6 million, on the back of higher revenue recognised at a point in time from sale of development properties in Malaysia.
For the nine months, net losses were reduced to RM63.2 million, from RM79.1 million before, even though revenue fell by 17.5 per cent to RM23.5 million.
Loss per share shrank to 1.93 sen for the three months, from 2.38 sen before. For the nine months, loss per share stood at 3.76 sen, against 5.11 sen previously.
Net asset value shrank to 0.43 sen per share, from 3.48 sen as at Jun 30, 2021.
Despite the net loss and current liabilities exceeding cash and bank balances, the board said the financial statements were prepared on a going concern basis as Hatten Land is working with creditors and "has a substantial value of unsold completed properties", among other factors.
"The reopening of the economy, inter-state and overseas travel will contribute to the recovery of the group's hospitality and property-related activities in Melaka," the board added.
Hatten Land's portfolio comprises 5 mixed-use projects and a retail mall in the Malaysian state, which are expected to benefit from domestic and border reopenings.
The Element X mall is being rebranded as an e-sports hub, as part of a strategic revamp that will see the group pivot its physical assets for new uses such as co-working spaces, education-related activities, cinemas, and "blockchain and renewable energy activities".
Hatten Land has also been pursuing crypto mining since January, with the group disclosing that it is tying up with partners to combine mining rigs with real estate resources.
"Barring unforeseen circumstances, the group's performance in the financial year ending Jun 30, 2022, is expected to benefit as a result of the above mentioned initiatives," it said.
No dividend was recommended, unchanged from the year before.
Hatten Land shares last traded at 3.5 cents, down by 0.1 cent or 2.8 per cent, before the results.