PRG Holdings Berhad Annual Report 2020

11 Annual Report 2020 Chairman’s Statement cont’d PERFORMANCE REVIEW For FY2020, PRG and its subsidiaries (“the Group”) reported revenue of RM196. 4 million which is RM64.4 million higher than what was reported in the financial year ended 31 December 2019 (“FY2019”). For the same period loss before tax came in at RM32.4 million which is RM34.4 million improvement from FY2019. This was mainly due to a one-off realisation of previously unrealised construction revenue and profit for Picasso Residence and interest income. In addition, there was a revenue and profit recognition from our new property development project Embayu @ Damansara West (“Embayu Project”), as part of the project progress. Manufacturing segment saw a lower revenue compared to FY2019 due to the lockdown and movement restriction orders implemented by various countries under the COVID-19 pandemic as well as the disruption of production due to the temporary closure of certain plants for two months. Although gross margins improved but overall the segment was affected by one-off goodwill impairment of RM16.3 million for its subsidiary in the People’s Republic of China (the “PRC”). Embayu Project had recorded an astonishing sales and bookings of approximately 54% up to December 2020 despite the tough market situation during this pandemic. We believed we are on the right path to provide affordable housing to the middle-income households. Embayu with the right pricing, great location and amenities will remain attractive to genuine house buyers. However, the construction segment saw delay in the work and billing caused by the outbreak of COVID-19 pandemic. The Group’s Agriculture Division has successfully completed the acquisition of 2 parcels of land in Kelantan. We have started to harvest the teak trees and are actively engaging with teakwood buyers from both local and foreign markets. In addition, the group has also secured special approvals from Malaysian authority to export logs to a few selected countries. Embayu @ Damansara West had recorded an astonishing sales and bookings of approximately up to December 2020 54% Embayu with the right pricing, great location and amenities will remain attractive to genuine house buyers. Dato’ Dr. Awang Adek bin Hussin Independent Non-Executive Chairman