JBB BUILDERS (01903.HK) announced that as of May 31, 2024, the preliminary review of the unaudited comprehensive management accounts for the eleven months of the group and existing available information, is expected to record a net profit attributable to owners of the company of no more than 6 million ringgit as of June 30, 2024, while the group recorded a net loss attributable to owners of the company of approximately 8.2 million ringgit as of June 30, 2023.
According to the existing available information of the company, the board of directors believes that the expected profit can be mainly attributed to the comprehensive impact of the following factors:
(a) Revenue for the year ending June 30, 2024 increased significantly compared with the same period in 2023, mainly due to (i) the increase in sand transportation volume of Singapore offshore transportation project; (ii) the increase in engineering volume generated by new contracts obtained as of June 30, 2024 and 2023, but partly offset by (i) the decrease in demand for ship fuel; and (ii) the contribution of partial revenue from completing several contracts offsetting the revenue increase as of June 30, 2023;
(b) Gross profit for the year ending June 30, 2024 decreased significantly compared with the same period in 2023, mainly due to (i) the increase in subcontracting costs led to gross loss recorded by the building and infrastructure services division, while the division recorded gross profit for the same period in 2023; and (ii) the decrease of gross margin for Singapore offshore transportation project, partly offset by the revenue increase mentioned above;
(c) Specific provision for credit losses for trade receivables and contract assets recognized for the year ending June 30, 2024, while the specific provision for credit losses for trade receivables and contract assets recognized as of June 30, 2023, mainly due to the improvement of collecting long-overdue trade receivables from clients; and
(d) Other income for the year ending June 30, 2024 increased significantly, mainly from the additional income generated by arranging offshore transportation related activities for our subcontractors and suppliers at the on-site area during the period.
