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Sunway Berhad reported profit before tax of RM251.7 million and declared acash dividend of 1.5 sen in 4Q 2020

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Press Release: SUNWAY BERHAD REPORTED PROFIT BEFORE TAX OF RM251.7 MILLION AND DECLARED A CASH DIVIDEND OF 1.50 SEN IN 4Q 2020

Sunway City Kuala Lumpur, 31 March 2021 – Sunway Berhad today announced its fourth quarter financial results (“4Q 2020”) for the financial year ended 31 December 2020. 

The Group recorded revenue of RM1,278.0 million in 4Q 2020 compared to RM1,353.0 million in 4Q 2019, representing a decrease of 5.5% year-on-year (y-o-y). Revenue was lower in 4Q 2020 due to lower contributions from property development, property investment and quarry segments. Profit before tax (“PBT”) was marginally lower by 0.2% y-o-y at RM251.7 million for the quarter ended 31 December 2020, from RM252.1 million in the corresponding quarter of the previous financial year. It should be noted that the balance of the development profits on one of the Group’s Singapore and China property development projects totalling RM182.5 million, which were deferred due to the adoption of MFRS 15, were recognised in the current quarter.  

While most of our business segments continued to recover from the fallout of the pandemic, our hospitality and leisure businesses under the Property Investment segment continued to be adversely impacted in the current quarter due to the resurgence of COVID-19 cases and the reinstatement of the Conditional Movement Control Order MCO (“CMCO”) which called for the closure of the theme park operations and more stringent social distancing requirements. 

In December 2020, the Group has successfully raised a gross proceeds of RM977.8 million pursuant to the completion of the Right Issue of Irredeemable Convertible Preference Shares (“ICPS”). The proceeds from the ICPS will be utilised to fund the expansion of the healthcare division, property development and property investment expenditure as well as repayment of borrowings. 

The Group has declared a first interim cash dividend of 1.50 sen per ordinary share in respect of the financial year ended 31 December 2020. In addition, the Group has also declared a preferential dividend of 5.25% per annum (based on the issue price of RM1.00) per ICPS for the period from 3 December 2020 (being the issue date) up to and including 31 December 2020. 

During the current financial year, the Group reassessed the classification of its investment in wholesale funds in accordance with MFRS 10 Consolidated Financial Statements. The Group has also consolidated these funds and restated its comparatives via prior year adjustments. The prior year adjustments have also affected the classification of the perpetual sukuk from equity to non-current liabilities as it does not meet the definition of equity in accordance with MFRS 132 Financial Instruments: Presentation. These reclassifications are not expected to have any significant impact to the core performance of the Group as the Group continues to generate strong cashflow from its operating activities. The Group has cash and cash equivalents amounting to RM2.1 billion.  Further, the Group plans to rebalance its overall debt maturity profile.  

Sunway Group Chief Financial Officer, Chong Chang Choong commented, “The financial performance of the Group’s business segments, especially leisure and hospitality businesses, is expected to continue to be impacted by the pandemic in the first half of 2021. However, the Group is cautiously optimistic that with the progressive rollout of the mass vaccination programme by the government, the local economy will begin to recover steadily in the second half of the year. Barring any unforeseen circumstances, the Group expects the financial performance of 2021 to be satisfactory.”

— end of press release —

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