For the six-month period ended December 2023, Hatten Land’s net loss swelled to RM31.7 million from RM21 million. Revenue for the half-year period was down 6.4 per cent to RM14.2 million.
Hatten Land said that as at end-December last year, its total loans and borrowings amounted to RM393.8 million – of which RM391.8 million were classified as current liabilities and exceeded the group’s cash and bank balances of RM3 million.
The company’s liabilities of about RM1.1 billion also exceeded its current assets that totalled just RM876.8 million.
However, the company said it was still presenting a net asset position of RM43.7 million as at end-December last year.
Hatten Land said its directors believe the group can continue operating on a going-concern basis as the Malaysian property market is showing signs of gradual improvement and there is optimism for the recovery of its hospitality and property-related activities in Melaka. The company said it holds a “steadfast focus” on its core property development business.
Hatten Land said the total market value of its development properties crossed RM1.1 billion as at end-June 2023, of which RM663 million constitutes unsold completed properties that it intends to sell gradually.
The company said it continues to work with its creditors to extend or restructure payment plans that include payment structure as well as contra payments with its property units. It is also working with its banks for the roll-over and extension of the repayment obligations, which aligns with the company’s requirements for the current business climate, and channels its cash flow for operational purposes.
Hatten Land has also begun the strategic restructuring of its subsidiary GMSB, in a bid to rejig its legacy contractual obligation to achieve a more sustainable capital structure. This will in turn reduce the pressure on the company’s cash outflows in the future.
One of the executive directors, who is also a controlling shareholder of Hatten Land, has undertaken to provide necessary financial support in the form of debt, equity, or a combination of both, in the event that is required by the group to sustain its operations.
In its outlook statement, Hatten Land said Melaka’s slower pace of recovery – when compared to major urban cities such as Kuala Lumpur and Johor Bahru – is further compounded by the growing competition in the region.
A majority of the group’s unsold completed properties are commercial spaces that have been non-operational since the pandemic and the introduction of government control measures. In response, Hatten Land is focusing on “transforming these spaces into versatile and attractive areas”. It has established partnerships in various sectors and is consistently pursuing fundraising activities.
Shares of Hatten Land last traded flat at S$0.013 on Friday.