Public-listed real estate developer JS Land Plc reported that the second quarter ended June 30, 2023 has been “challenging but satisfactory” amid a slowdown in construction and real estate activities and an oversupply in the market.

JS Land Plc was the second firm to list on Cambodia Securities Exchange’s (CSX) Growth Board on February 10, 2022 after DBD Engineering Plc, raising 48.8 billion riel ($12 million).

According to its filing on August 31 this year, total comprehensive loss stood over 2.124 billion riel in the second quarter of 2023, which is an increase of 185.5 per cent compared to the same quarter in 2022.

As of June 30, 2023, total assets rose 19.3 per cent to 82.2 billion riel whereas total equity decreased 41.8 per cent to 4.8 billion riel.

“We could not have achieved this without your trust in our vision and continued investment in our business growth, which is truly invaluable,” said Koy Le San, executive chairman of JS Land.

He said during the company’s annual general shareholders’ meeting on June 9, 2023, plans for the year were announced.

The meeting outlined their internal and external challenges and strategies to overcome the headwinds with long-and-short-term business plans, which they believe would contribute significantly to the company’s growth.

“We are indeed excited to announce that the Garden Residency 2 has been completed and we achieved this milestone ahead of schedule.

“The property would be ready for handover to buyers in the third quarter of 2023. We are committed to keeping up the momentum of growth and working hard to deliver even better results in the third quarter,” Le San said.

The firm’s main source of revenue is from the sale of condominium projects that have developed, the company said in its filing.

The condominium market in Cambodia has been “rather challenging due to the high supply of condominiums in Phnom Penh”.

In order to lower the risk of holding on the unsold properties, JS Land “always actively promotes the products by introducing new attractive packages with affordable payment schemes to achieve sales targets”.

As of 30 June 2023, it did not report any real estate sales as all revenues are to be recognised at a point in time upon transfer of ownership of the residential units to the customers.

“However, The Garden Residency 2 has already achieved a total of more than 77 per cent sales in the second quarter of 2023. In the same period, JS Land has reported other income of more than 43.828 million riel,” it stated.

The company also pointed out that as of 30 June 2023, The Garden Residency 2 had achieved an overall work completion of 78.2 per cent, with the status report showing that substructure work was done while the superstructure construction was around 85.5 per cent complete.