Ho Hup Construction records net loss of RM3.92 mil

KUALA LUMPUR: Ho Hup Construction Bhd recorded a net loss of RM3.92 million in its 1Q ended March 31, 2010, down by 29.22% from RM5.55 million posted in the same quarter last year.

Its revenue for the quarter under review eased by 55.15% to RM5.68 million from RM12.66 million in the same quarter previously.

The property division registered a pre-tax loss of RM3.8 million on the back of RM0.5 million revenue generated from the current quarter compared with a pre-tax loss of RM0.7 million in the corresponding period last year.

“The losses in the current quarter are mainly due to the commission paid of RM1.6 million for the sale of shopoffice units from the 60-acre development [in Bukit Jalil],” Ho Hup said in a filing to Bursa Malaysia on May 31.

The construction division registered a pre-tax gain of RM0.7 million in1Q2010 despite there being no revenue recorded in the quarter as compared with a pre-tax loss of RM7.8 million for the corresponding period last year.

Hop Hup said the reduction in losses is due to the gain from disposal of equipment, which resulted in gain of RM6.6 million.

“Recognition of revenue was deferred due to uncertainty in the completion of certain projects,” Ho Hup noted.

The ready mixed concrete division recorded a turnover of RM5.4 million in 1Q2010, compared with RM4.8 million for the corresponding period last year. The pre-tax loss recorded is RM0.2 million in 1Q2010 compared with RM0.4 million for the corresponding quarter last year.

Ho Hup said the reduction in losses is due to lower operating cost following the closure of plants resulting from completion of projects.