What happened in Q4 2019 ?
Total revenue increased by 42% from RM168m (Q4 2018) to RM239m (Q4 2019)
Construction
Vietnam EPC Progress billings RM167m (~9%)
Allowance for impairment of receivables RM11m
Construction profit before impairment of receivables (27m+11m) RM38m
Future Capital commitment in respect of Vietnam JV decreased by USD4m in Q4 to USD52.14m
Property
LAD RM10m
Impairment of Goodwill RM20m
Allowance for impairment of Investment property RM10m
Contingent LAD increased by RM3 in Q4 to RM45m
Higher revenue from property segment RM24m (11m Q4 2018)
Higher Losses on Property segment RM29m (25m Q4 2018 after adjusting for 50m BG loss).
However, After adjusting for impairment of goodwill (20m) and investment property (10m), the property segment actually reported a profit of RM1m.
Accelerated assets impairments though affecting current profit reporting, it decreases future amortisation and depreciation expenses and improves future profit.
Profit before tax
Without the non-cash one off items of impairments of goodwill, receivables and investment property, the loss before tax of 12m would have been a profit before tax of 29m which is higher than the 17m PBT in Q3 2019 and the 2m (adjusted for the 50m BG loss) PBT in Q4 2018.
Why is there a loss after tax of RM15m but a profit attributable to ordinary equity holders of the parent (Jaks) of RM18m ?
This is because 49% of the RM29m losses in property segment belongs to minority interests, and 100% of RM27m construction profit belongs to Jaks. On the group basis, there is a loss of RM15m but when computing the profit attributable to Jaks you have to deduct the property losses pertaining to the minority interests. In short, shareholders of Jaks are only concerned with the profit attributable to Jaks only, which is RM18m in Q4 2019.
DK66
P/S: This article is prepared in a hurry. Will be refined. Please revisit.
https://klse.i3investor.com/blogs/Jaks%20resources/2020-02-27-story-h1483998942-Jaks_Resources_Q4_2019_results.jsp
