Cambodia: Royal Group PPSEZ gains lower loss in Q2
The publicly listed Royal Group Phnom Penh Special Economic Zone (Royal Group PPSEZ) of the conglomerate Royal Group gained a loss after tax of about $126,700 in the second quarter of this year, approximately 86.23 percent lower compared to over $0.9 million in the same period of last year, according to the quarterly report of Royal Group PPSEZ.
The loss of profit was reduced by the 212 percent increase of the company’s revenue of over $3.74 million from other income and share of results of associates in the April-June period of 2022 compared to over $1.76 million in the same period of last year, while the company spent nearly $4 million on cost of sales, administrative expenses, finance costs and income tax expense, according to the report.
“The total revenue and profit after tax were largely improved as the revenue from land sales significantly increased … Some investors have appeared in wait-and-see mode ahead of next year’s general election. The country is on the verge of climbing up the manufacturing value chains. These further efforts can help facilitate higher growth,” the report pointed out.
The report based on the most recent projection of Cambodia’s economic growth by the International Monetary Fund (IMF), the country’s Gross Domestic Product (GDP) will grow by about 6 percent on average over the next few years, which reflects an expected slowdown in credit and real estate cycles and challenges in improving diversification and competitiveness.
Neak Oknha Kith Meng, Non-Executive Chairman of Royal Group PPSEZ, said in the report that the financial position of the company remains strong as of 30 June 2022 with total assets amounting to about $110 million, comprising non-current assets of approximately $44 million and current assets of about $65 million, while the total equity amounted to about $60 million, a decline of 2.11 percent compared to 2021.
Royal Group plans to develop its major infrastructure and facilities works at the Royal Group Poipet Special Economic Zone that will cover an area of approximately 20.67 ha whereby about 15.89 ha are allocated to accommodate a total of twenty-eight factory lots with sizes ranging from about 0.38 ha to 0.80 ha each and the rest of the area are designed for infrastructure and service area.
The Royal Group Phnom Penh SEZ Plc was changed from Phnom Penh SEZ Plc—listed in the bourse Cambodia Securities Exchange (CSX) at the end of May 2016—in late April this year, but the company has filed the necessary documentation to Ministry of Commerce and General Department of Taxation and is waiting for approval to complete the name changing process.
The principal activities of the company are to establish, develop and operate the SEZ in Phnom Penh and engage in other related commercial activities. As of June 2022, the company accommodated 12 investors from 14 nations where a majority come from US, Japan, Malaysia, Taiwan, China and Korea in wide-ranging industries.