E&O TO FOCUS ON ANDAMAN ISLAND, 2 PROJECTS TO BE LAUNCHED BY FIRST QUARTER NEXT YEAR

KUALA LUMPUR, May 31 (Bernama) -- Eastern & Oriental Bhd (E&O) will focus on the Andaman Island township development project this year, with two new projects totalling around RM1 billion in gross development value (GDV) to be launched in the financial year ending March 31, 2024.

Managing director Kok Tuck Cheong said that demand for the township is very good currently, with more than 50 per cent of its latest project, launched in March this year, being booked.

"The second project launch on Andaman Island Phase 1 called Arica has sold well since sales commenced in March 2023. We are encouraged by the enthusiastic response from buyers, an indication of our superior product offering at affordable pricing.

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"We are now finalising related matters for the development and have submitted for approval figures (to authorities). Maybe in another six months (we will) get the approvals to launch (other projects) towards the end of the year or in the first quarter of next year," he told a media briefing on the company's full-year financial results ended March 31, 2023 here today.

For the financial year ended March 31, 2023, E&O recorded a lower net profit of RM44.55 million compared to RM63.76 million recorded in the previous financial year, while revenue rose to RM318.07 million from RM140.50 million previously.

The increase in revenue was mainly attributed to the properties segment which registered a RM110.5 million rise and the hospitality segment which saw a RM64.9 million increase. The lower net profit was mainly due to a write-down of RM135.3 million in property development costs. 

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However, E&O said this was being offset with fair value gain recognised on investment properties, higher revenue recognition and lower finance costs.

-- BERNAMA