KUALA LUMPUR (June 1): Country Heights Holdings Bhd (CHHB) posted a net profit of RM2.03 million for the first quarter ended March 31, 2022, versus a net loss of RM5.17 million in the previous year’s corresponding quarter, helped by better performance of its business segments.

Revenue for the quarter grew 19% to RM9.25 million, from RM7.75 million a year earlier.

In a statement, the group said its healthcare, resorts and hospitality, exhibition and convention, and property divisions all posted better topline performance for the quarter, with several segments returning to the black.

“We are optimistic that FY2022 will be a strong profitable year as the economy opens up and we begin releasing our products for sale in the second quarter of 2022.

“Even as we begin launching our RM300 million property programme to monetize our Realisable Net Asset Value, we remain committed to adopting technology to transform our business model, including executing the partnership with JD.com and the development of Mines Smart City,” said CHHB managing director Datuk Jared Lim.

He said the group is focused on its digital transformation initiatives, noting that the M Smart City App will be launched in the third quarter of the year, which will turn Mines Wellness City into the first cryptocurrency-enabled township in the country.

Lim added that the group’s partnership with JD.com, announced in April 2022 sends a “clear signal” to the market of CHHB’s digital transformation.

The group announced the collaboration with China’s JD.com last December to set up a store and develop an omni-channel business model in Malaysia. Under the agreement, JD.com shall grant CHHB a licence to use the JD.com brand for 10 years, while CHHB will set up JDMines Sdn Bhd, which will build the first physical store with about 100,000 sq ft of retail space on the ground floor of Mines International Exhibition and Convention Centre.

JDMines will be a 70:30 joint venture between CHHB and Star Pulse Sdn Bhd, a technology incubator that will work with Country Heights on the implementation and execution of the omni-channel business model.

Meanwhile, the group said its management had identified assets worth RM300 million to be disposed of, comprising various plots of land, ready bungalow units, and apartments across the Klang Valley, Negeri Sembilan and Kedah.

On the group’s expansion plans, Lim said these are underway for CHHB’s healthcare division, which will see a Traditional Chinese Medicine (TCM) Hospital and confinement care unit added to its Wellness Building.

The group is targeting to achieve between RM10 million and RM12 million in net profit from its healthcare segment by 2023.

Meanwhile, its resort and hospitality division is working on the relaunch of Mines Beach Resort hotel, which includes the introduction of water sports, fishing and Mines golf packages.

CHHB shares closed 1.5 sen higher at 75 sen on Tuesday (May 31), giving the group a market capitalisation of RM223 million. The stock has dropped RM1 or 57% from Jan 3.

Edited by Tan Choe Choe

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