30th Apr 2019 15:02
LONDON (Alliance News) - Aseana Properties Ltd on Tuesday said it will be restructuring the management and will strengthen the composition of its board after reporting a sharply widened loss in 2018.
The property developer in Malaysia and Vietnam reported a net pretax loss of USD6.8 million in 2018 compared to USD4.3 million loss a year prior, due to an increase in operating expenses to USD24.1 million from USD18.4 million.
The losses were largely due to The RuMa Hotel in Malaysia of USD4.2 million, which mostly was attributable to pre-opening expenses.
A loss of USD1.1 million versus a gain of USD8.7 million arose from foreign currency translation differences for foreign operations due to a weakening of the Malaysian ringgit against the US dollar.
Revenue, meanwhile, declined marginally to USD33.1 million from USD33.6 million in 2017. The revenue was mainly attributable to the sale of completed units at SENI Mont Kiara and The RuMa Residences, both in Kuala Lumpur, Malaysia.
Net asset value per share also was lower in 2018, at USD0.69 versus USD0.72 the year before. No dividend was declared or paid in either 2018 or 2017.
"The economic situation in Malaysia remains challenging due to uncertainties in fiscal policies subsequent to the change in government back in 2018," said Chair Mohammed Hashim.
"In Vietnam, although the country's economy continues to be robust, it is susceptible to risks posed by the uncertainties from the ongoing US-China trade war," added Hashim.
Separately, Aseana said it considers the internalisation of its management as the most practical and expeditious option moving forward for the company. This will involve the hiring of a full-time chief executive officer and a small, but dedicated team to manage the key functions of the company. Aseana will be looking to add two members to its current three-member board.
The company said it believes that the ideal CEO candidate will be one with relevant experience in the real estate markets of Malaysia and Vietnam, with a strong track record in management and divestment of real estate assets.
Aseana shares were untraded at USD0.542 each in London on Tuesday.
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