KUALA LUMPUR: Higher taxes incurred in 2017 have pushed I-Berhad’s net profit seven per cent lower to RM58.7 million for the year ended December 31 2018.
Group revenue dropped 18 per cent to RM375.1 million, I-Berhad said in a statement today.
Its property development maintained its best performer and would continue to contribute going forward, group executive chairman Tan Sri Lim Kim Hong said.
“Five years ago we embarked on a plan to establish a RM1 billion investment property portfolio to have a strong recurring income stream to balance the cyclical earnings from the property development segment.
“Last year was a transition year for this plan as the capital employed for the property investment segment in 2018 is now significantly larger than the capital employed for the property development segment,” Lim said in the statement.
“For the past few years, much of the investment properties were still under construction and thus did not contribute to the bottom line of the group. The picture will be different from 2019 onwards,” he added.
First in line is the soft opening of Central i-City Mall, slated for 23 March 2019 and the official opening scheduled on 27 April 2019, which Lim expects to have a positive impact on the group.
The new snowfall experience that was introduced in 2018 for the SnoWalk attraction and the opening of the i-City Convention Centre (iCCC) are also expected to drive additional traffic to i-City.
Lim also touched on i-City’s status as being the centre of Selangor states’s Golden Triangle area, as mentioned by Selangor Menteri Besar Amirudin Shari.
“We believe i-City is already well on its way to being the heart of Selangor’s Golden Triangle given the levels of economic opportunities on hand, with its blend of corporate, residential and leisure components,” he said.
“While the property development market may continue to be challenging in the near term given the overhang of unsold properties in the country, i-City’s longer-term value proposition will continue to set us apart.”
i-City is a 72-acre freehold Ultrapolis located along the Federal Highway with direct flyover access.
It is certified as an MSC Malaysia cybercentre, a tourism destination and designated as an international park.