KUALA LUMPUR: EcoFirst Consolidated Bhd's net profit surged by more than seven times to RM15.95 million for the fourth quarter (Q4) ended May 31, 2021, from RM2.09 million recorded in the previous year's corresponding quarter.
In a statement today, the property developer said the increase in net profit was mainly due to the fair value gain of RM13.7 million on the investment property.
Revenue in the same quarter decreased 42.4 per cent to RM14.04 million from RM24.35 million.
"The decline in turnover during the quarter under review was mainly due to the postponement in the launching of new development and lower revenue from the property development segment, which continued to be negatively affected by the Covid-19 pandemic," it said.
EcoFirst chief executive officer Datuk Tiong Kwing Hee said the general property sector had been severely affected by the prolonged Covid-19 pandemic and the lockdown measures introduced to contain the spread of infections.
"We are not spared from the impact of the pandemic as the company has to postpone its new launches amidst the reimposition of the Movement Control Order (MCO)," he said.
Tiong said moving forward, the company expects the property sector to remain robust for affordable products.
He said Ecofirst has re-strategised the majority of its products and pricing to below RM500,000 per unit for its upcoming launches.
"The shift of focus towards affordable property targeted at the mass-market segment will help to drive growth for the group going into FY22," he said.
For the full financial year 2021, EcoFirst's net profit eased 19.1 per cent to RM13.83 million from RM17.09 million, while revenue slashed more than half to RM42.57 million from RM150.04 million.