KUALA LUMPUR: Listing-bound Radium Development Bhd posted RM2.94 million net profit for the first quarter ended March 31, 2023.
Group revenue stood at RM25.29 million, which was lower than the revenue registered in the preceding year.
Radium attributed this primarily to lower revenue recognised from ongoing Vista Sentul Residences project and the newly-launched R Suites Chancery Residences project in February 2023.
Radium's earnings per share stood at 11 sen.
For its audited financial year 2022 (FYE2022) results, Radium said its revenue dropped to RM563.69 million in FYE2021, due to the completion of its projects in FYE2021.
This included the Residensi Semarak Platinum which was completed in October 2021.
Additionally, higher revenue recognition from the Residensi Platinum OUG project and Residensi PV9 project in FYE2021 contributed to the variance.
Group managing director Datuk Gary Gan Kah Siong said the company was pleased with the FYE2022 performance, despite the challenging business environment globally and locally.
"Looking ahead, we are confident of maintaining our momentum as we focus on launching and selling two new projects in 2023, which are R Suites Chancery Residences in Ampang with a gross development value (GDV) of RM474.37 million and Residensi Desa Timur in Salak South with a GDV of RM994.53 million."
Radium is schedule for a listing on the Main Market of Bursa Malaysia tomorrow.
It plans to allocate RM109.3 million from the listing proceeds to develop a 145-room boutique hotel with four-star furnishings at its mixed development project in Ampang, alongside R Suites Chancery Residences.
"With this new hospitality venture, we aim to capitalise on a new revenue stream from the rebounding travel industry in Kuala Lumpur and complement our existing property development business.
"Additionally, our subsidiary, Rasa Wangi Development Sdn Bhd, entered into a joint venture agreement with Kadar Jutajaya Sdn Bhd for a proposed development on a leasehold land located in Mukim Batu, Kuala Lumpur," Gan said.
Radium expects to launch the project in the first half of 2024, as it seeks ways to prompt growth and create value for its shareholders.
Radium proposed to pay a single-tier first interim cash dividend of one sen per ordinary share based on the enlarged issued share capital of 3.47 billion units in respect of the financial year ending Dec 31 2023.
This will be paid in the second quarter of 2023, involving a total payout of RM35 million.
"The entitlement and payment date will be determined at a later stage," the compamy said.
