Phnom Penh SEZ to construct factories for hire
In a bid to diversify its revenue stream, Phnom Penh SEZ will restructure its business model by injecting capital into building its own factories that can be leased to tenants of its flagship industrial park, a company representative said on August 23.“Right now, 90 per cent of our revenue is from land sales and only 10 per cent from services,” said Fong Nee Wai, chief financial officer of Phnom Penh SEZ. “We need to have a more balanced model.”The unveiling of a plan to build factories, which will be leased out under 15-year contracts, comes after the release this week of the company’s first financial report since going public in May, which showed marked declines in revenue and net profit over the past 18 months on slower land sales.
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