KUALA LUMPUR: Radium Development Bhd's net profit dropped 81 per cent year-on-year (YoY) to RM489,000 in the second quarter ended June 30, 2024 (Q2 2024) versus RM2.57 million in Q2 2023 dragged by losses in property development and investment segment.
Its revenue for the quarter under review, however, rose 10 per cent YoY to RM30.63 million versus RM27.9 million in the same period last year.
Radium said this was due to the commencement of the main building work for its ongoing projects, namely Suite Canselor and Residensi Desa Timur projects, and the absence of a one-off listing expense of RM1.6 million incurred in the preceding year's comparative quarter.
For the first half ended June 30, 2024 (1H24), the company's net profit dropped to RM2.43 million from RM5.51 million a year ago. Group rose to RM58.16 million YoY from RM53.21 million in 1H23.
Building on the acquisition of a prime parcel of land on Old Klang Road, its subsidiary Radium Global Sdn Bhd, is set to launch a high-rise residential development in the 2H24.
"With an estimated gross development value of RM500 million, this upcoming project not only capitalises on the prime location, but also marks a significant milestone in Radium's ongoing commitment to expanding and enhancing its property portfolio," it said.
Radium has earmarked RM109.3 million from its initial public offering proceeds for the development of a 145-room boutique hotel in Ampang here.
"Our strategic landbanking expansion and diversification into the hospitality sector are critical components of our growth strategy,"
said group managing director Datuk Gary Gan Kah Siong.
"These initiatives not only strengthen our development portfolio but also align with our commitment to creating sustainable value for our stakeholders and contributing to the urban development landscape in Malaysia," he added.