PETALING JAYA – LBS Bina Group Bhd, which has secured RM413 million sales so far in line with its target of RM1.5 billion for 2017, is still positive on its China joint venture (JV) Zhuhai International Circuit (ZIC) Ltd despite almost two years since signing the initial deal with Zhuhai Jiuzhou Group Holdings Ltd.
Group managing director Tan Sri Lim Hock San said the revised plans were submitted early this year and approval for the concept, planning and layout of the project to transform the racing circuit into a mixed development comprising motorsports, tourism and cultural elements, is expected in the next few months.
He said the delay in getting the approval was due to a change in government officials in Zhuhai City as well as the need to put in various adjustments to the plan.
“This is a huge project, there are a lot of discussions going on. After the district meeting agrees, we’ve to go to the city authority for final approval,” Lim told reporters after its AGM yesterday.
The ZIC project is a Sino-foreign JV between LBS (60%) with local partner Zhuhai Jiuzhou, an investment arm of Zhuhai City government. Under the JV, the local partner provides the 264-acre land while LBS contributes the capital to develop the racing circuit.
LBS signed the memorandum of understanding with Zhuhai Jiuzhou in September 2015, for the proposed ZIC upgrading and transformation plan.
“It’s okay (no impact from delay of securing approval) because our circuit is still running. Only delay in the implementation. We maintain this racing circuit. We want to create this as a tourism (spot) and do a theme park, as well as factory and commercial outlets,” Lim said.
LBS made a net profit of RM95.63 million in FY16 but its motor racing circuit division saw its pre-tax loss narrow to RM8 million in FY16 from RM15 million a year ago, while the division’s revenue rose 9% to RM25 million compared with FY16.
Lim said the completion of the 29km Hong Kong-Zhuhai-Macau bridge in 2017/2018, is set to further boost to the economy, particularly the tourism industry in Zhuhai City, thus benefiting the ZIC project.
Meanwhile, Lim said in the remaining months this year, it is going to launch six projects totalling RM1.88 billion. These projects include Vines 2 in Cameron Highlands, BSP6, SkyLake Residences, Desiran Bayu, Alam Perdana and its Bukit Jalil 1Malaysia Civil Servants Housing Project. It has 17 ongoing projects worth RM3.2 billion, of which RM2.34 billion has been sold.
Its unbilled sales as of May 23 stood at RM1.34 billion, which can sustain the group for the next two years.