Tropicana Corporation Berhad Annual Report 2020

ANNUAL REPORT 2020 PERFORMANCE REVIEW TROPICANA CORPORATION BERHAD Financial Performance For the financial year 2020 under review, Tropicana revenue stood at RM1.06 billion, recording a slight dip of 6.5% or RM73.3 million lower when compared with RM1.14 billion posted in the corresponding period in the preceding year. The decrease in revenue in the current quarter reflected lower progress billings across some of the Group’s key existing ongoing projects and lower sales as a result of the COVID-19 pandemic. Development activities were halted temporarily upon the enforcement of various movement restriction rulings set by the Malaysian Government. The Group’s PBT for the year ended 31 December 2020 was recorded at RM238.4 million, which was RM129.1 million or 35.1% lower when compared to the corresponding period in the preceding year. This was mainly due to the recognition of the gain on bargain purchase which arose when the Company acquired development lands held by 12 acquiree companies from a related party at a favourable price of an average discount of 13.4% to the market value of these lands and where the corporate exercise to acquire was completed in November 2019. The Group’s profit after tax and minority interests (“PATMI”) capped at RM91.3 million for the year ended 31 December 2020. Despite the market conditions, the Group rewarded its shareholders with dividends paid by way of distribution of 4.5 treasury shares for every 100 existing shares held in the Group. Despite the unprecedented times, the Group delivered encouraging results and recorded higher property sales of over RM800 million compared to 2019 as well as continued to progress with its integrated developments and digital transformation initiatives to improve overall cost and operational efficiencies. Tropicana’s net gearing stood at 0.52 times as of 31 December 2020, as compared to 0.31 times in the previous corresponding year. MANAGEMENT DISCUSSION & ANALYSIS 049 048 Our signature luxurious project overlooking Kuala Lumpur City Centre: The Residences and W Kuala Lumpur Hotel