THE Minority Shareholders Watch Group (MSWG) is seeking an answer from MK Land Holdings Bhd at its forthcoming AGM the effectiveness of its cost-optimisation strategies to ensure ample liquidity and maximisation of productivity within the group.
Among others, MSWG wants to know the types of administrative expenses that the property development group has managed to reduce as a result of its cost-optimisation exercise.
“Please explain the areas in which the group has been able to increase productivity as a result of the implementation of the productivity strategies,” requested the monitoring body.
“(Also) what are the realignment of resources that the group has implemented and what is the resultant savings?”
MK Land has in Annual Report 2020 noted that the group has managed to reduce its administrative expenses by 19% for FY2020 (RM48.5 mil) as compared to RM59.8 mil in FY2019.
MSWG also enquired from Jaycorp Bhd as to what measures the company’s construction division is taking to return its construction division back to profitability in FYE2021.
This is given the division has incurred a loss RM400,000 in FYE2020 from a profit of RM3.6 mil in FYE2019. The company has attributed the poor performance to disruptions arising from the movement control order (MCO) that hampered progress of the division’s current projects throughout the year.
Elsewhere, MSWG wanted to know from Gamuda Bhd as to how its board wishes to address the group’s deteriorating core net profit moving forward as the core net profit of the property development group came in at just RM520 mil in FYE2020 – its lowest since FY2016.
To re-cap, Gamuda has posted a core net profit of RM700 mil in FYE2019, RM832 mil (FYE2018), RM700 mil (FYE2017) and RM626 mil (FYE2016).
As for Revenue Group Bhd, the monitoring body is curious to know the reasons as to why the company has not impaired all the amount of trade receivables that had been outstanding for more than 90 days.
This is given that according to the company’s Annual Report 2020, it had only impaired RM282,875 out of RM6.42 mil of trade receivables that had been outstanding for more than 90 days during FYE2020. – Dec 4, 2020