Tropicana Corporation Berhad Annual Report 2019

Malaysia’s domestic economy is facing greater-than-expected uncertainties due to the Coronavirus (“ COVID-19 ”) pandemic and implementation of the unprecedented Movement Control Order in Malaysia since mid-March 2020. Against this backdrop, the Group has experienced slower-than-expected take-up rates from property buyers and investors during the first quarter of 2020. However, we believe house buyers’ sentiments and investors’ buying appetites would recover once COVID-19 subsides and the domestic economy gradually recovers towards the second half of 2020. From the Group’s perspective, we are cautiously optimistic in ensuring a robust financial year performance as there are conducive factors sustaining the business performance in the ensuing financial year. Some of these factors include the Group’s outstanding unbilled sales value of RM836.5 million as at 31 December 2019, which will be progressively recognised as revenue for the Group. For 2020, the Group plans to introduce new developments and phases across its signature Tropicana townships amounting to a GDV surpassing RM1.6 billion, leading to additional revenue recognisable, should take-up rates and construction progress targets be achieved in 2020. Among the new property projects to be launched in 2020 are landed residential properties in Tropicana Aman; serviced apartments and commercial properties in Tropicana Metropark; affordable homes, serviced apartments and retail shops in Tropicana Heights; retail shop offices in Gelang Patah, Johor; as well as niche market products such as serviced apartments in Genting. Guided by our unique strategy, we are covering several property sub-segments by launching a variety of products to cater to the different needs of house buyers and property investors at strategic locations, instead of focusing on a single market segment or a single category of customers. During the year under review, Tropicana held two face-to-face 2019 Analyst Group Meetings for the second quarter and fourth quarter results performance on 29 August 2019 and 16 March 2020, respectively. The Group’s 40th Annual General Meeting was held on 25 June 2019 where it served as a platform to share updates as well as to address any concerns from our shareholders. The implementation of the new policies in Budget 2020 such as lowering the property purchase limit imposed on foreigners from RM1 million to RM600,000, rebasing the calculation of Real Property Gains Tax (“ RPGT ”) from 1 January 2000 to 1 January 2013, raising the ceiling price for rent-to-own schemes from RM300,000 to RM500,000 and more, are essential components in injecting dynamism into the Malaysian property market in the mid to long-term. The relatively low gearing position of the Group does not only enable the Group to preserve additional borrowing capacity in the future, but to weather through an even more challenging economic environment which may take place in the ensuing financial year. Coupled with the net proceeds received from issuance of RM248 million perpetual bonds, all these initiatives are essential in helping the Group maintain a healthy liquidity position in the coming financial year. In short, the Group is well-prepared to face any unexpected eventualities in the coming financial year by cautiously managing its financial position and liquidity, aligned with the Group’s ongoing commitment to generate long-term shareholder value. Contact Our IR Team Analysts, current and potential investors who have any questions or would like to provide feedback on the Company are encouraged to contact our IR Team: Email : ir@tropicanacorp.com.my Tel : +603 7663 6888 Fax : +603 7663 6999 Investor Relations Sustainability at Tropicana What We’ve Governed Financial Statements & Other Information pg 35 Tropicana Corporation Berhad Annual Report 2019