SINGAPORE - Malaysian property developer Hatten Land swung to a net loss of RM74.3 million (S$24.1 million) for the third quarter from a net profit of RM5.6 million in the year-ago period due to one-off expenses from its backdoor listing.
The Catalist-listed company reported a one-off non-operating expense of RM87.8 million in the three months to end-March 2017 from professional fees and acquisition costs related to its reverse takeover.
Revenue during the quarter jumped 122.6 per cent to RM164.9 million, due to higher progressive sales recognised from the Hatten City Phase 2 and Harbour City projects.
Operating profit before non-operating expenses and tax about doubled to RM25.9 million in the quarter from RM12.6 million a year ago. But gross margin slipped to 29.8 per cent from 37.6 per cent a year ago mainly due to lower profit margin projects sold.
Group executive chairman and managing director Colin Tan said this year will see the completion of Hatten City Phase 2 and the launch of Imperio Mall.
"With the recent acquisitions and the plans for the five slated landbanks in the pipeline, we are embarking on our new phase of expansion," he added.
"In Melaka, Thea Wellness Project and MICC Project have obtained developmental order approval. Our proposed new project in Cyberjaya in Selangor marks our inroads into medical tourism through the new investment of an integrated mixed development that will comprise retail, commercial (offices), residential, and hospitality units and a hospital."
Hatten Land is the result of a backdoor listing by Malaysia's Hatten Group, helmed by brothers Colin and Edwin Tan. The group struck a S$386 million RTO deal with VGO Corp late last year, with VGO acquiring Hatten's Sky Win Management Consultancy to form Hatten Land.