KUALA LUMPUR, June 5 (Bernama) -- Country Heights Holdings Berhad (“CHHB”), a diversified property, hospitality, and wellness group has announced the results for its first quarter ended 31 March 2022 (1Q2022) with total revenue of RM9.2 million compared to RM7.7 million for the previous year's corresponding quarter ended 31 March 2021. Profit before tax was RM3.55 million for the current quarter compared to a RM5.2 million loss before tax in the previous year's corresponding quarter.
Managing Director of CHHB, Datuk Jared Lim commented, “We are optimistic that FY2022 will be a strong profitable year as the economy opens up and we begin releasing our products for sale in 2Q 2022. Even as we begin launching our RM300 million property program to monetize our Realisable Net Asset Value, we remain committed to adopting technology to transform our business model, including executing the partnership with JD.com and the development of Mines Smart City.
The Healthcare division recorded revenues of RM5.8 million as compared to RM5.1 million in the same quarter for 2021. The Covid-19 RT VCR testing and vaccine service contributed to the revenue increase. The gross profit increased by 8% from RM3.7 million in FYE 2021 to RM4.0 million in FYE 2022.
The Resorts and Hospitality division recorded revenues of RM1.1 million in the current quarter compared to RM0.9 million for the first quarter of 2021. There was mainly due to contribution from Palace Vacation Club timeshare membership. Our plans to relaunch Mines Beach Resort in 3Q2022 will further increase the hospitality revenue for FY2022.
Segment profit was recorded at RM6.0 million for the first quarter of 2022 as compared to a segment loss of RM1.2 million for the same quarter of 2021. The increase in the segment profit resulted from the waiver of debts amounting to RM7.2 million from the Golden Horse Palace Berhad under the scheme of arrangement in the current quarter of 2022. The Palace of the Golden Horses hotel has been temporarily closed since June 2020 to restructure its overall operations.
The Exhibition and Convention division contributed RM0.8 million of revenue in the current quarter as compared to RM0.3 million in the first quarter of 2021. The revenue contribution generated from the increased event function was recorded at RM0.6 million.
The Property Division recorded revenues of RM1.6 million in the current quarter compared to RM1.4 million for the first quarter of 2022 contributed by sales of the Belezza Phase 3 project, double storey development located in Jitra, Kedah.
Segment profit was recorded at RM0.6 million for the first quarter of 2022 as compared to a segment loss of RM1.5 million for the same quarter of 2021. This was mainly due to the reversal of provisioned operating costs.
Digital Landlord
Explained Datuk Jared, “As all of our divisions begin their turnaround, we remain focused on our Digital transformation initiatives. The M Smart City App will be launched in Q3 2022 whereby Mines Wellness City will be the first township in Malaysia to use the smart city app with cryptocurrency enablement. This will integrate the Mines community and allow integrated digital services, cutting-edge community engagement, and smart city management all on one smart city app.
“In April 2022, we announced our collaboration with JD.com, a clear signal to the market that CHHB is intent on transforming its business model into the digital age. This partnership will launch Malaysia’s first Omnichannel model involving MIECC as the flagship retail store for curated JD.com merchandise spanning over 150,000 sf, which will lead customers to the online platform, the localized version of JD.com.”
CHHB Sales Program (RM300 million)
The management has identified sales of RM300 million from existing completed properties to contribute to profitability. The RM300 million property sales program comprises various plots of land, ready bungalow units, and apartments in numerous locations in Klang Valley, Negeri Sembilan, and Kedah. This will activate the monetization of the Group’s RNAV.
Healthcare Division
Said Datuk Jared Lim, “GHHS Healthcare which started as our CSR program has grown and developed into a holistic approach to healthcare, providing Western medical treatment and clinical pathology services alongside traditional Chinese medicine. Our Wellness & Rejuvenation center services also feature heavily as part of our integrated healthcare solution.”
Expansion plans are underway with a TCM Hospital and confinement care the in new Wellness Building called “Cloud Life” and we are targeting RM10 million to RM12million profit after tax by 2023. In progress, we will establish a partnership with Eternal Wellness, one of the most established Natural/Bio-medicine wellness clinics in Malaysia in GHHS Healthcare, and launch a detox center with German protocols for 1-2 week stay programs in the Mines Beach Resort Wellness Wing.
During the pandemic, GHHS Healthcare participated in the National Vaccination Program and has vaccinated over 350,000 vaccines at its premise at GHHS Healthcare, and it's one of the mega PPV’s Malaysia International Exhibition Convention Centre (MIECC). The revenue from testing for Covid-19, treating patients, and administering vaccination for the disease will likely continue in 2022.
Resort and Hospitality Division
In the Resort and Hospitality division, the Group has ended the lease with Philea Group and taken back the management of Mines Beach Resort effective from 01 May 2022. Dubbed the only ‘beach in the city’, the new management is currently working on the relaunch of Mines Beach Resort which will be positioned as a Wellness and Resort hotel, and will be announcing the introduction of water sports, fishing, and new packages with Mines Golf as well.
Country Heights Holding Berhad (CHHB)
With the motto of “Ever Searching for Better Living”, Country Heights Group of Companies was founded by Tan Sri Lee Kim Yew and officially incorporated on the 10th of May 1984 as a private limited company. Country Heights began as a property developer showcasing a unique touch in delivering beautiful country-styled homes in Malaysia and was listed on the Main Board of Bursa Malaysia in 1994.
Today, Country Heights is a lifestyle property developer with a diversified business portfolio in Hospitality, Wellness, Lifestyle, Tourism, and Investments. CHHB has announced its transformation plans to a Digital Landlord and has partnered with technology leader JD.com to achieve this.
The company has a strong track record as the master developer of over 560 million square feet of space worldwide. Its past projects include some of the world’s well-known landmarks such as the London ExCel Exhibition and Conference Center and the Mines Wellness City in peninsular Malaysia.
