Country Heights maintains its vision on its four key ventures

Country Heights Holdings Bhd (CHHB) says it suffered losses arising from cancelled or postponed reservations and events for the remaining year due to the already challenging financial landscape coupled with the effects of the Covid-19 pandemic.

In a filing with Bursa Malaysia today, CCHB said the ongoing pandemic has forced some drastic changes in the group’s ongoing operations.

“While the group maintains its vision on its four key ventures that have been detailed previously, the impact of the Covid-19 pandemic has brought a change in the new norm in all aspects of our businesses and workplaces,” it said.

CHHB, founded by its executive chairman Tan Sri Lee Kim Yew has four business segments – property development, wellness hub, resorts & hospitality, and Mines car city centre.

Lee, who in September announced that he will be stepping down from January 1, 2021, to pursue his interest in the blockchain space, said during a press conference back then that CHHB is expected to remain in the red for the whole of 2020.

CHHB posted revenue of RM7.9 million in the third quarter ended September 30, 2020 (Q3 2020), as compared with RM23.9 million in the same period last year (Q3 2019).

It recorded a pre-tax loss of RM5.1 million in Q3 2020 same as the previous corresponding quarter as the business for all segments had been disrupted by the Movement Control Order (MCO) imposed by the government to curb the spread of the Covid-19 pandemic.

The revenue for the property development division was RM900,000 in Q3 2020, as compared to RM1.7 million in Q3 2019. The division posted a loss of RM1.2 million, as compared to the segment loss of RM2.8 million for the same quarter of 2019.

List of projects by CHHB includes Country Heights Damansara, one of the last remaining freehold residential properties in Kuala Lumpur offering sub-division bungalow lots spread over 200 acres of land; Country Heights Kajang, also known as the Beverly Hills of Malaysia; and, Country Villas, the country’s first Mediterranean-styled waterfront homes.

CHHB’s other developments include College Heights Garden Resort – Malaysia’s first academic township.

The revenue for the resorts and hospitality division was RM800,000 in Q3 2020 as compared to RM8.8 million in Q3 2019.

The segment loss was RM1.5 million as compared to the segment loss of RM2.7 million for the same quarter of 2019 due to the temporary suspension of hotel operations until January 1, 2021.

CHHB’s operating resorts and hospitality assets include Palace of the Golden Horses located at the Mines Resort City in Seri Kembangan.

“Palace of the Golden Horses was assigned as a quarantined hotel during the MCO and has successfully completed this national service. However, the hotel’s result together with the forecast of the travel and MICE industry has been less than favourable.

“Therefore, the group has decided to temporarily suspend the hotel’s operation to regroup and upgrade before opening its operation in 2021,” CHHB said.

For the nine months to September 30, 2020, CHHB’s total revenue decreased to RM25.7 million from RM65.1 million recorded in the same period last year.

The pre-tax loss increased to RM19.4 million in Q3 2020, as compared to RM15.5 in Q3 2019.

Source: NST