KUCHING: B.I.G. Industries Bhd (BIG) has sold 75 out of the 78 residential units at its Suasana Melalin @ Kota Kinabalu development.
The residential project comprises 71 units of double-storey terrace houses, six units of double storey semi-detached houses and one unit bungalow with an estimated gross development value of RM37 million. The project is developed in two phases.
“The occupation permit for Phase 2 is to be issued in the fourth quarter of this year,” according to BIG’s chairman Datuk Lee Chuen Wan in the company’s newly released 2024 annual report.
For Phase 1, the occupation certificates were issued on March 22, 2023.
BIG said the company’s upcoming property project is an industrial development known as Kidurong 12 @ Bintulu, comprising 12 units of industrial buildings development in the industrial town
The company said the development plan application was submitted to Bintulu Development Authority (BDA) on May 9, 2023 and BDA has endorsed the application and forwarded it to the State Planning Authority on January 29, 2024.
“We are also actively looking to acquire land with development potential for this division,” it added in a management discuss and analysis report.
In financial year ended June 30,2024 (FY2024), BIG chalked up a 64 per cent growth in the revenue of its property division to RM7.98 million (FY2023:RM4.86 million) as a result of the encouraging property sales and the progress of Phase 2 construction works of the Suasana Melalin @ Kota Kinabalu.
This lifted the division’s pre-tax profit to RM1.76 million (RM1.65 million), which included the re-alignment of development costs incurred and to be incurred till the completion of the project. The division’s asset expanded to RM33.79 million (RM30.86 million).
In FY2024, BIG’s gas division delivered a strong bottom line as its pre-tax profit jumped to RM5.23 million (FY2023:RM1.57 million) or up by 85 per cent on a four per cent increase in revenue to RM25.35 million (RM24.18 million).
The higher pre-tax profit included a RM3.88 million gain on the disposal of the land and building of the company’s former Pasir Gudang branch.
“With the exclusion of the gain, the division’s operating profit for FY2024 was RM0.22 million lower than FY2023 due to increased labour and procurement costs. We have taken a two-pronged approach to manage the deficit by focusing on: (1) Market — expand our market and increase market share, and (2) Focus — productivity and value adding,” said BIG, which has manufacturing facilities for industrial gases in Sarawak.
Established in 1982 in Miri, BIG is the pioneer industrial gas operator in Sarawak. The group is involved in manufacturing, distributing and marketing of industrial gases, provision of services & maintenance and trading in related products in Sarawak, Sabah and Peninsular Malaysia.
The key customers for the gas division are from the fabrication & shipping, oil gas & petrochemical, electronic and food & beverages sectors.
According to the company, the notable contracts fulfilled in 2024 was the supply and delivery of liquid nitrogen to Malaysia LNG Sdn Bhd and Air Liquide Malaysia Sdn Bhd; liquid oxygen to Air Liquide Malaysia Sdn Bhd, Suri Seri Begawan Hospital Kuala Belait, Pengiran Mude Mahkota Pengiran Muda Haji Al-Muhtadee Bilah Tutong and Borneo Specialist Hospital Kuching; compressed gases to Press Metal Group, CHEC Construction (M) Sdn Bhd, Dayang Enterprise Sdn Bhd and KKB Engineering Bhd.
Lee said BIG had set up a new branch in Samalaju Industrial Park, Bintulu to support its existing customers and gross customer base at the park that serves energy-intensive industries.
“Construction work for Phase 12 was completed on 20 August 2024. We expect to receive the occupation permit and commence carbon dioxide refilling activities in the fourth quarter of this year,” he added.
On July 16, 2024, BIG ceased the business of its concrete division as it continued to incur operational losses in FY2024.The company said the decision on the business cessation was inevitable based on the historical financial performance and weak business outlook.
Subsequently to FY2024, the concrete division’s property, plant and equipment were disposed for RM1.023 million, generating a disposal gain of RM0.864 million.
On prospects, Lee said the group remains cautiously optimistic that the economic condition should improve for FY2025.
