Thriven Global FY2016 shows higher losses after audit due to impairment

KUALA LUMPUR (April 26): Thriven Global Bhd said its audited net loss for the financial year ended Dec 31, 2016 (FY16) was much larger as compared the unaudited net loss, due to impairment on the disposal of Bukit Tunku land.

In its filing with Bursa Malaysia, Thriven Global disclosed that its audited net loss for FY16 amounted to RM10.15 million, equivalent to a deviation of RM4.59 million or 82% from a net loss of RM5.56 million it reported before the audit.

The group explained that the deviation was caused by the impairment loss arising from the write-down of the cost of a freehold 10,226-sq-metre land at Bukit Tunku to its net realisable value.

Thriven Global bought the land in 2007 with RM30.75 million, and it has a net book value of RM38.38 million as at FY16.

On April 11 this year, the group said its 51%-owned subsidiary Mulpha Argyle Property Sdn Bhd had entered into a sale and purchase agreement (SPA) with Mount Well Sdn Bhd for the disposal of the land for a sum of RM27.52 million.

As a result, Thriven Global incurred a loss of RM11.41 million from the deal, and had to perform a write-down of RM8.81 million for the land as impairment loss.

The 51% share of impairment loss attributable to the owners of the company is equivalent to RM4.49 million, coupled with a provision for taxation of RM91,000.

Thriven Global said that at the time of reporting its unaudited financial result for FY16, the group was still considering alternative options for the Bukit Tunku land, and without the receipt of down payment and a binding purchase offer for the land, no impairment or write-down was proposed.

The offer is only considered to be binding upon the receipt and crediting of the deposit, following which the SPA will be signed.

Thriven Global saw its share price gained 0.5 sen or 1.85% to close at 27.5 sen, giving it a market capitalisation of RM103.59 million. — theedgemarkets.com

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