Tropicana Corporation Berhad Annual Report 2018

ANNUAL REPORT 2018 23 WHAT WE’VE GOVERNED FINANCIAL STATEMENTS OTHER INFORMATION MANAGEMENT DISCUSSION & ANALYSIS Over the last three decades, Tropicana has focused on designing and shaping communities, building on our reputation of having in-depth market insights and experience. In pursuit of excellence, we continued to be market-driven, redoubling efforts to unlock the value of our strategic landbanks in the Central, Northern and Southern regions of Peninsular Malaysia. We worked hard at positioning our businesses for growth, delivering sustainable performance and long-term shareholder value. T hroughout 2018, Malaysia’s economic growth remained subdued due to financial market volatility and uncertainties in the global economies, including external trade tensions which contributed towards the lower Gross Domestic Product (“GDP”) registered for the year at 4.7%. The government introduced various policies to invigorate the property market such as exemptions on stamp duty and Real Property Gains Tax, including a wide range of benefits for first-time house buyers. Against this challenging backdrop, we pursued the prudent management of our resources and at the same time, remained centred on building quality homes that delivered on our promise of creating value to our residents and surrounding communities. We redefined the use of space guided by our unique DNA, namely accessibility, connectivity, amenities, facilities, innovative concepts anddesigns, generousopenspaces, multi-tiered security and quality. Backed by our innovative spirit, fresh perspectives and dynamic team, we achieved modest growth anchored on eight ongoing projects and an existing landbank of over 1,088 acres with a total potential Gross Development Value (“GDV”) of RM46.1 billion. Financial Review The property industry during the year under review remained challenging, faced with global and regional economic headwinds. For the year under review, Tropicana’s revenue was lower by 9.9%, registering RM1.64 billion compared to RM1.81 billion in the preceding year. This was due to lower sales and progress billings across projects in the Klang Valley as well as the Southern and Northern regions. Nevertheless, our profit before tax increased by 15.0% from RM278.4 million in 2017 to RM320.2 million in 2018, while net profit decreased slightly to RM170.0 million from RM180.9 million recorded in 2017. Looking ahead, we will remain focused on being market driven, introduce new developments and phases in 2019 within the existing and new signature Tropicana townships amounting to a GDV of more than RM3.2 billion, adapting to market demands while unlocking value of our landbank in strategic locations in the Klang Valley, Genting and Southern regions of Peninsular Malaysia. Profit Before Tax (million) 2018 RM320.2 2017 RM278.4 15.0% + 2018 comparing to 2017 The Residences and W Kuala Lumpur located in the heart of the city