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PARAGRAPH/RULE 8.03A COMPANIES : OTHERS

ISKANDAR WATERFRONT CITY BERHAD

Type Announcement
Subject PARAGRAPH/RULE 8.03A COMPANIES
OTHERS
Description
ISKANDAR WATERFRONT CITY BERHAD ("IWCITY" OR "THE COMPANY")
- ANNOUNCEMENT PURSUANT TO PARAGRAPH 8.03A OF THE MAIN MARKET LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD

On 17 March 2022 and 22 March 2022 respectively, the Company received emails from Bursa Malaysia Securities Berhad (“Bursa Securities”) referring to the announcement made by the Company on the latest quarterly report on consolidated results for the financial year ended 31 December 2021 (“Q4/2021 Results”) which has requested the Company to perform an immediate assessment and reassessment respectively on whether IWCity had triggered Paragraph 8.03A of the Main Market Listing Requirement of Bursa Securities (“MMLR”), in particular Paragraph 8.03A (7)(b)(i), and ensure compliance in relation thereto where necessary (“Bursa Requests”).

 

Based on Q4/2021 Results, the Company had recorded a yearly revenue of RM22.15 million on a consolidated basis. Pursuant to the computation under Paragraph 8.03A (7)(b)(i) of the MMLR, IWCity should record revenues of approximately RM37.7 million, representing a shortfall of approximately RM16 million. Thus, based on prima facie information, the Company has triggered Paragraph 8.03A (2)(b) of the MMLR.

 

In this regard, the Company on 25 March 2022, will submit an application to Bursa Securities to seek for a relief from Bursa Securities that IWCity need not comply with Paragraph 8.03A(3) of the MMLR on the grounds that the Company is able to demonstrate that its existing business is viable, sustainable and has growth prospects supported with appropriate justifications.

 

The Board of Directors of IWCity (“Board”) has performed a comprehensive assessment and reassessment on the Bursa Requests and has concluded that the Group’s business is viable, sustainable and has growth prospects. The Board is of the view that the revenue shortfall of approximately RM16 million is temporary in nature and is well supported by sufficient unbilled sales of approximately RM65 million secured by the IWCity Group as of 31 December 2021. The delay in unbilled sales were mainly due to the prolonged Covid-19 pandemic leading to nationwide lockdown, which impacted the Group’s construction activities for progress billings.

 

The key bases and justifications for the Board in deriving their deliberations are set out as follows:-

 

(i)   IWCity, is one of the major property developers in Johor and it has promising growth prospects.  IWCity has a land bank of approximately 1,000 acres in Flagship D (Tebrau), which is one of the key development areas in Johor Bahru and has long-term sustainable development for the Group’s business activities;

 

(ii)   During the financial year ended 31 December 2021, the Board has consciously delayed the launches for new property development projects due to the prolonged Covid-19 pandemic which has affected market sentiments and demand for properties in Johor Bahru;

 

(iii)   As Malaysia is entering the endemic phase of Covid-19 on 1 April, 2022, the Board and the Management is cautiously optimistic that with the expected reopening of Malaysian borders and relaxation of the Standard Operating Procedures, more Malaysians working in Singapore will return to purchase property in Malaysia, especially Johor Bahru; and

 

(iv)   In addition, the on-going development of the Johor Bahru-Singapore RTS link should augur well for the market sentiment and provide a catalyst for the property market demand in Johor Bahru.

 

In view of the pro-longed Covid-19 pandemic for financial year ended 31 December 2021, the Board is of the unanimous view that the financial position of the Company was a result of inability to recognise unbilled sales due to timing difference. Premised on the above, the Board is of the collective views that IWCity’s level of operation is adequate, viable and sustainable.

 

The Company will make the necessary announcement for any material development in relation to the above in accordance with the MMLR.

 

This announcement is dated 25 March 2022.

 

 

 

 

 

 

 

 

 

 

 

 

 






Announcement Info

Company Name ISKANDAR WATERFRONT CITY BERHAD
Stock Name IWCITY
Date Announced 25 Mar 2022
Category General Announcement for PLC
Reference Number GA1-25032022-00030


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