Zecon reported RM18.86 mil net profit for the financial year ended Dec 31

KUALA LUMPUR – In the announcement of its unaudited financial statement for the 3 months ended December 31, 2021, Zecon added RM2.07 million to the Group’s profit after tax to the 18 months cumulative total of RM18.86 million.

An 18-month cumulative total since July 1, 2020 saw the Group registering a revenue of RM633.09 million with a profit after tax of RM18.86 million. A positive result from a very challenging period.

The Development And Upgrading of The Proposed Pan Borneo Highway Work Package Contract 03 – Phase 1 (Pan Borneo Highway) project continued to contribute positively with 3 months revenue of RM155.70 million. Hospital Pakar Kanak-Kanak Universiti Kebangsaan Malaysia (HUKM) project added RM17.6 million of revenue through Asset Management Services, increased from RM14.5 million for quarter ended July to September 2021.

The Group’s profit after tax would have been more significant had it not been offset by the losses from HUKM project due to costs escalation.

HUKM, the 243 beds specialist children hospital with 54 rooms hotel which commenced operation in April 2021, also bringing in RM41.2 million in interest income, an increase of RM11.7 million or 40% from RM29.5 million recorded for 3 months prior. This stream of cash flows shall continue throughout the 25.5 years concession period until mid-2046.

Pan Borneo Highway

Zecon’s infrastructure project, the RM1.46 billion Pan Borneo Highway Phase 1 – Serian Roundabout To Pantu Junction is near its completion. The Serian Roundabout section was fully completed and handed over on 5 December 2021 while the Pantu Junction section is expected to be fully completed in April 2022.

On-Going Corporate Exercise

Zecon’s proposed medium term Islamic Bond of up to RM1.0 billion is still ongoing. Part of the proceeds will be utilised to pay off existing loans, enhance liquidity and inject much needed cashflow into operations.

Prospects

Zecon continues to be actively participating in tenders for potential projects both in Sarawak and Semenanjung Malaysia. The plans on the launching of our 3,000 acres of land in Kuching are on-going and progressing well. The Group’s prospects remain very positive.

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