SINGAPORE (May 9): Hatten Land saw a net loss of RM13.2 million ($4.4 million) in 3Q18 ended March compared to a net loss of RM72.5 million a year ago in 3Q17 when the group reported a one-off expenses of RM87.8 million relating to the reverse takeover of VGO Corporation.

Revenue for 3Q18 fell 48.1% to RM85.5 million mainly due to lower revenue recognised for Hatten City Phase 2 project and lower sales from Hatten City Phase 1 project in 3Q18. The revenue decline was partially offset by the higher revenue contribution from Harbour City and Satori projects.

Gross profit came in at RM4.3 million for the 3Q18, 91.3% lower than the same quarter a year ago. The decrease in gross profit was mainly due to the additional estimated borrowing costs of RM17.7 million charged out to income statement for Hatten City Phase 2.

The group also recorded other income of RM4.7 million, RM2.9 million higher compared to a year ago mainly due to the increase in unrealised forex gain resulting from the strengthening of the Malaysian ringgit in 3Q18 and higher interest income from late payment interest charged to purchasers.

Selling and distribution expenses decreased 25.4% to RM12.9 million mainly due to lower sales and marketing expenses for Hatten City Phase 1 project. General and administrative expenses increased 47.4% to nearly RM11 million.

Hatten Land says construction of Harbour City comprising a theme park, shopping mall and three hotels, is progressing well. The group is also on track to launching Harbour City Premier Resort, the last phase of Harbour City, in FY18 ended June. Satori Serviced Residences is also expected to be launched in 2H18.

As at March 31, the group’s unbilled sales of development properties amounted to RM866.1 million. With the expected completion of Hatten City Phase 2 in 4Q18, some of unbilled sales is expected to be converted into billings for the project.

Shares in Hatten Land closed 0.2 cent lower at 16 cents on Wednesday.