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46
SUNWAY
CITY
BERHAD
ANNUAL
REPORT
2010
Chief Financial Officer’s Review
Rewarding the Shareholders
0.74
987
1,563
0.48
1,202
2,522
0.58
1,521
3,352
0.53
1,599
4,098
FP2006* FY2007 FY2008 FP2009* FY2010
Total Borrowings Total Property Value 1 Net Gearing
Unlocking values through the listing of
Sunway REIT
With the successful listing of Sunway REIT, the Group has
managed to reduce its net gearing ratio from 0.53 times to 0.12
times of its shareholders’ fund. The low gearing ratio enhanced
SunCity’s financial capacity for its business expansion locally as
well as overseas. Apart from this, it has managed to reduce the
interest expenses of the group.
At PATMI level, the savings of interest expenses, the share of
distributable profit from Sunway REIT and the REIT management
fee were more than adequate to cover the losses of income from
the 8 assets disposed of Sunway REIT.
820
1,250
0.12
Consolidating the earnings of
Sunway Lagoon
Part of the REIT proceeds was used to acquire the balance
49% minority interest of Sunway Lagoon Sdn Bhd as the
Group believes this will help to improve the Group’s bottomline
immediately with the same management effort. This acquisition
is a better alternative as compared to buying over a new piece
of land which requires a gestation period before it can contribute
to the Group’s earnings. Sunway Lagoon Sdn Bhd has business
operations that include the Sunway Lagoon and property
development projects such as Sunway South Quay 1 .
30.6.2006*
RM’000
(restated)
30.6.2007
RM’000
(restated)
30.6.2008
RM’000
(restated)
31.12.2009*
RM’000
(restated)
31.12.2010
RM’000
Total Borrowings 987 1,202 1,521 1,599 820
Cash and Bank Balances 372 526 549 438 513
Shareholders Fund 833 1,416 1,682 2,172 2,597
*The financial performance for the financial periods 2006 and 2009 cover a 18-month result.
1 Total Property Value includes property, plant and equipment, investment properties and non-current assets classified as held for sales
By increasing SunCity’s stake to 100%, SunCity will be able
to enjoy the full business performance of Sunway Lagoon as
well as higher share in the development profits from Sunway
South Quay.
1 Sunway South Quay is a 123-acre lakeside integrated development located next
to Bandar Sunway with a Gross Development Value (“GDV”) of RM5.2 billion. It
is 60% owned by Sunway Lagoon Sdn Bhd. It has launched a few projects that
include Bayrocks Waterfront Villa, Nautica Lakeside Suites (enbloc sales to Korean),
A’marine and LaCosta. It has RM4.2 billion GDV for future development.