Jakarta, May 31, 2024 – Property issuer PT Modernland Realty Tbk. (MDLN) held its Annual General Meeting of Shareholders (RUPST) at the Club House Jakarta Garden City, East Jakarta on Friday, May 31, 2024. The RUPST was attended by the Board of Commissioners, Board of Directors, and the Notary of the Company.
The agenda discussed in the RUPST included:
- Approval and Ratification of the Consolidated Financial Statements and Annual Report of the Company, including the Accountability Report of the Board of Directors and the Supervisory Report of the Board of Commissioners for the financial year ending December 31, 2023, and granting acquittal and discharge (acquit et decharge) to the members of the Board of Directors and Board of Commissioners for their management and supervisory actions during the financial year ending December 31, 2023.
- Determination of the use of the Company's profits for the financial year ending December 31, 2023.
- Determination of salaries, honoraria, and allowances for the Board of Directors and Board of Commissioners for the financial year 2024, and bonuses for the Board of Directors and Board of Commissioners for the financial year 2023.
- Appointment of the Public Accountant to audit the Company's financial statements for the financial year ending December 31, 2024.
2023 Company Performance Summary
Amid the global economic slowdown and uncertainty due to various geopolitical conflicts in Europe and the Middle East throughout 2023, Indonesia’s economy showed positive performance with a strong and stable growth rate of 5.05%. This growth was marked by a decrease in unemployment and poverty levels, the result of state budget allocations playing a role as a shock absorber in maintaining public purchasing power and controlling inflation.
However, conditions in the property sector remained dynamic. The Central Bureau of Statistics (BPS) recorded the development of the property sector, especially in the construction industry, which posted a 4.91% annual GDP growth, up from 2.01% the previous year. On the other hand, in the real estate industry, the contribution to the national GDP decreased to 1.43% from 1.72% the previous year. Moreover, property sales increased across all house types, especially medium and large types. Sales of primary homes also increased, supported by sales of small and large house types.
At the beginning of 2024, Indonesia was also faced with another challenge, the General Election (Pemilu). This influenced investment decision-making in 2023. However, Indonesia still experienced better economic growth compared to the global growth rate of 2.9%. This condition proves that Indonesia’s economy remains able to grow in uncertain situations.
“Thanks to the support and trust of all shareholders, the management has taken important and strategic steps to drive revenue for long-term growth by launching new projects, accelerating groundbreaking and construction projects, and speeding up unit handover processes to maintain consumer trust in the Company’s projects,” said the President Director of PT Modernland Realty Tbk., William Honoris.
Meanwhile, the Director of PT Modernland Realty Tbk., Herman, explained the Company’s Financial Performance as follows:
Revenue
The Company’s revenue as of December 31, 2023, amounted to Rp1.15 trillion, an increase of 4.86% from Rp1.10 trillion the previous year. This increase was driven by the recognition of sales from Cleon Park apartment units in Jakarta Garden City.
Cost of Revenue
The cost of revenue in 2023 reached Rp614.51 billion, up 14.67% compared to 2022, which was Rp535.87 billion. This was mainly affected by the recognition of sales from Cleon Park apartment units, which have a higher cost of revenue percentage compared to the Company's other residential products.
Gross Profit
The Company recorded a gross profit of Rp537.80 billion in 2023, down 4.47% from Rp562.99 billion the previous year. The decline in gross profit was in line with the increased cost of revenue.
Operating Profit
As of December 31, 2023, the Company’s operating profit was recorded at Rp197.19 billion, a decrease of 33.69% compared to Rp297.37 billion in 2022. The decline in operating profit was mainly due to a 52.09% increase in selling expenses and a 70.76% decline in other operating income.
Net Loss for the Year
The Company recorded a net loss of Rp104.84 billion in 2023, a decrease of 619.77% from a net profit of Rp20.17 billion the previous year. This condition aligned with the decline in operating profit.
Assets
As of the end of December 2023, the Company’s total assets were recorded at Rp13.69 trillion, an increase of 1.19% from Rp13.53 trillion in 2022.
Liabilities
The Company’s total liabilities at the end of 2023 amounted to Rp9.57 trillion, an increase of 2.90% compared to Rp9.30 trillion the previous year.
Equity
The Company’s total equity reached Rp4.12 trillion in 2023, a decrease of 2.57% compared to Rp4.23 trillion in 2022. The decrease was due to comprehensive losses in 2023.