Equine Capital records net loss of RM25.84 million in 1Q 2010

KUALA LUMPUR: Equine Capital Bhd has recorded a net loss of RM25.84 million against in its first quarter ended March 31, 2010 against a net loss of RM20.41 million in the corresponding quarter in 2009.

Revenue in the quarter under review is RM25.3 million compared with the previous corresponding quarter's RM12.14 million.

In a listing on Bursa Malaysia on May 20, the company said the net loss was attributed to sales and marketing expenses for new projects launched and additional provision made for bumi quota penalty.

This was mitigated by the revaluation of Wisma KLIH and a parcel of leasehold land with building to RM38 million and RM3.3 million respectively plus profit from a new project.

Revenue for the current quarter was derived from the sales of bungalow lots in Equine Park, Seri Kembangan and the Group’s on-going development in Seri Kembangan, Cheras and Batu Kawan in Penang.

The immediate preceding quarter (4Q2010) recorded revenue of RM7.6 million. This was mainly attributed to the sales of a new project commenced in August 2009 amounting to RM9.2 million and a project launched in May 2008 which contributed RM5.8 million.

In August 2009, Equine Capital launched a project which consisted of 118 units of 3-storey and 4-storey shop offices, with gross development value (GDV) of RM170 million. Construction started in January 2010. In March 2010, the Group launched in Seri Kembangan 152 units of semi-detached houses with estimated GDV of RM113 million and land clearing started in January 2010.

Future launches will be seen in Seri Kembangan, Batu Kawan and Cheras in the forthcoming financial year with 183 shop offices and 181 semi-detached houses and bungalows in Seri Kembangan; 22 shop offices in Cheras; and 174 shop offices and 172 semi-detached houses in Batu Kawan, Equine said.

The Group's core competency is in property development with a niche in township development since 1992. Its three flagship projects, namely Taman Equine, Putra Permai and Pusat Bandar Putra Permai, sit on over 800 acres of leasehold land located at Seri Kembangan.