KUALA LUMPUR: NCT Alliance Bhd's net profit eased to RM37.56 million for the year ended Dec 31, 2023 (FY2023) from RM44.18 million registered a year ago.
However, revenue rose to RM279.69 million from RM241.31 million previously.
This was largely contributed by on-going project, Grand Ion Majestic, as well as sales from completed stocks of Acacia Residences and Grand Ion Delemen.
In the fourth quarter, the group achieved a revenue of RM82 million, marking a 22 per cent increase from RM67 million in last year's corresponding period.
NCT Alliance's lower profit for the year and quarter under review were due to higher staff costs, bank facility charges and marketing promotional expenses, it said in a filing with Bursa Malaysia.
The lower profit recorded by the group primarily attributed by expenses related to the employee share option scheme and the restricted share grant plan.
NCT Alliance executive chairman and group managing director of Datuk Seri Yap Ngan Choy said it continued to deliver a positive result, driven by the ongoing development of its flagship project, Grand Ion Majestic (GIM).
"We anticipate GIM to significantly bolster the Group's bottom line upon its completion this year, propelled by the substantial growth in tourist travel to Malaysia," he said in a statement.
Throughout the year, NCT Alliance has also focused on improving its net gearing ratio, resulting in a significant reduction to 14 per cent from 39 per cent in the previous year.
In view of the geopolitical tension in Middle East countries and weak China economic data, the global economic uncertainties are affecting consumer confidence level for domestic demand.
Despite the challenging outlook, Malaysia's economy remains resilient with improving exports and higher tourists' arrival.
NCT Alliance said it will continue to focus on selling its ongoing projects and completed inventories, and timely completion of its current development projects for the financial year ending December 31, 2024.
"With a low gearing position, we will continue to explore new development opportunities within Malaysia to ensure its future business sustainability," it added.