Interim Report 中期報告 2024 Infinity Logistics and Transport Ventures Limited 鷹輝物流有限公司 鷹輝物流有限公司 （於開曼群島註冊成立之有限公司） 股份代號：1442 中 期 報 告 目錄 公司資料 2 財務摘要 4 管理層討論及分析 7 企業管治及其他資料 13 簡明綜合損益及其他全面收益表 21 簡明綜合財務狀況表 23 簡明綜合權益變動表 25 簡明綜合現金流量表 27 簡明綜合財務報表附註 29 1 鷹輝物流有限公司 | --- | --- | --- | |----------------------------------------------|--------------------------|---------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | 公司資料 | | | | 董事會 | 薪酬委員會 Tan Poay Teik | 先生 （委員會主席） | | 執行董事 | | Dato' Kwan Siew ...

Financial Performance - The company's revenue for the six months ended June 30, 2024, was RM 235,564,000, an increase of 29.5% compared to RM 181,905,000 for the same period in 2023[1] - Gross profit for the same period was RM 45,922,000, representing a gross margin of approximately 19.5%, up from RM 37,249,000 in 2023[1] - The net profit for the six months ended June 30, 2024, was RM 20,497,000, a 23.5% increase from RM 16,628,000 in the previous year[2] - Total comprehensive income for the period was RM 18,104,000, down from RM 22,146,000 in 2023, primarily due to foreign exchange losses[2] - The company reported a basic and diluted earnings per share of RM 0.93 for the current period, compared to RM 0.81 in the previous year[2] - The company reported a pre-tax profit of 24,673 thousand MYR for the six months ended June 30, 2024, compared to 18,697 thousand MYR for the same period in 2023, indicating a growth of 31.9%[10] - The total segment performance showed a gross profit of 45,922 thousand MYR for the current period, up from 37,249 thousand MYR, marking an increase of 23.4%[10] Revenue Breakdown - Revenue from container liquid bag solutions reached 94,573 thousand MYR, up from 54,840 thousand MYR, representing a growth of 72.3% year-over-year[15] - The logistics center and related services generated revenue of 41,314 thousand MYR, compared to 39,733 thousand MYR, reflecting an increase of 4.0%[15] - The road transportation services revenue decreased to 36,992 thousand MYR from 37,001 thousand MYR, a slight decline of 0.02%[15] - Revenue from external customers in Malaysia was 123,256 thousand MYR, an increase from 105,668 thousand MYR, representing a growth of 16.6%[13] - Revenue from integrated freight forwarding services increased significantly by approximately 28.6% to about 53,242,000 MYR, with gross profit rising by 52.3% to approximately 12,811,000 MYR[32] - Revenue from container liquid bag solutions surged approximately 72.5% to about 94,573,000 MYR, with gross profit increasing by 108.8% to approximately 23,449,000 MYR due to an acquisition[33] Assets and Liabilities - The company's total assets as of June 30, 2024, were RM 649,330,000, compared to RM 654,186,000 as of December 31, 2023[3] - Non-current liabilities decreased to RM 171,613,000 from RM 183,144,000, indicating improved financial stability[4] - The company's cash and cash equivalents were RM 41,463,000, down from RM 50,769,000 at the end of 2023, reflecting a tighter liquidity position[3] - Trade receivables from third parties increased to 91,780 thousand MYR as of June 30, 2024, compared to 72,671 thousand MYR as of December 31, 2023, reflecting a growth of 26.2%[24] - Trade payables to third parties increased to 43,414 thousand MYR as of June 30, 2024, from 39,733 thousand MYR as of December 31, 2023, showing an increase of 6.8%[28] - The company’s total lease liabilities were approximately 80,853,000 MYR, a decrease from 89,223,000 MYR at the end of 2023[36] Costs and Expenses - For the six months ended June 30, 2024, the total employee costs amounted to 32,656 thousand MYR, an increase of 28.9% compared to 25,305 thousand MYR for the same period in 2023[19] - The cost of inventory for the six months ended June 30, 2024, was 71,124 thousand MYR, representing a significant increase of 63.3% from 43,611 thousand MYR in the previous year[19] - The company’s cost of goods sold for the six months ending June 30, 2024, totaled approximately 189,642,000 MYR, an increase of about 31.1% compared to the previous year[33] Investments and Future Outlook - The company has made significant investments in property, plant, and equipment, with a total of RM 386,186,000 as of June 30, 2024, up from RM 347,960,000[3] - The company invested approximately 49,289 thousand MYR in property, plant, and equipment during the six months ended June 30, 2024[10] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[1] - The company is optimistic about the market outlook for the remainder of the year, despite lower freight rates, as the overall economic environment shows signs of improvement[35] Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring compliance with corporate governance and financial reporting responsibilities[46] - The group had no contingent liabilities as of June 30, 2024[40] - There were no significant events affecting the group from June 30, 2024, to the date of the announcement[41] - The group did not purchase, sell, or redeem any of its listed securities during the relevant period[47] - The group has not utilized any financial instruments for hedging purposes as the anticipated foreign exchange risk is not considered significant[38] Dividends and Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[23] - The board did not recommend the payment of an interim dividend for the six months ended June 30, 2024[43] - The weighted average number of ordinary shares used for calculating basic and diluted earnings per share remained at 2,064,000,000 for both periods[22] Employee Information - Employee count increased to approximately 1,035 as of June 30, 2024, compared to 901 as of June 30, 2023[42] - Employee costs for the six months ended June 30, 2024, were approximately MYR 32,656,000, up from MYR 25,305,000 for the same period in 2023, representing a year-on-year increase of about 29.3%[42] - The company is committed to attracting and retaining top talent by providing competitive compensation and bonuses based on performance[42]

Charitable Contributions and Community Engagement - The company made charitable donations of approximately 161,000 MYR during the reporting period, an increase from 92,000 MYR in 2022[27] - Infinity plans to donate a laboratory built from shipping containers to promote research output at the university and inspire student interest in logistics[54] - The company emphasizes the importance of community engagement to understand local needs and ensure business activities consider community interests[37] - The company engages in community investment and charitable activities to fulfill its social responsibilities[123] Employee Development and Training - The company has implemented a training and development program focused on creating a motivated workforce to meet new challenges and align with both short-term and long-term goals[4] - The company conducts annual training needs analysis (TNA) to create a comprehensive training calendar that supports individual and organizational goals[4] - The company has established training programs to enhance employees' knowledge and skills related to their job responsibilities[63] - Infinity is focused on developing industry-relevant talent through partnerships and participation in events like the Robofun & Robothon Industry Challenge Demo Day 2023[54] Governance and Compliance - The company is committed to best corporate governance practices and has adhered to the Hong Kong Stock Exchange's corporate governance code during the reporting period[45] - The board of directors confirmed compliance with the corporate governance code and has reviewed related policies and practices[88] - The company has a policy for reviewing and monitoring compliance with legal and regulatory requirements[88] - The company has established procedures for directors to seek independent professional advice at the company's expense when necessary[76] Financial Performance - The company's revenue for 2023 was approximately 371,105,000 MYR, an increase of about 4.0% compared to 356,870,000 MYR in 2022[200] - Gross profit for 2023 was approximately 68,941,000 MYR, a decrease of about 10.0% from 76,636,000 MYR in 2022, resulting in a gross margin of approximately 18.6%[200] - Net profit for 2023 was approximately 18,379,000 MYR, down from 35,882,000 MYR in 2022[200] Environmental and Social Responsibility - The company has implemented a governance framework for environmental, social, and governance (ESG) matters, with a dedicated committee to coordinate efforts across departments[144] - The company has implemented various measures to reduce air pollutant emissions, greenhouse gas emissions, and waste generation density, using 2021 as the baseline year[152] - The company is committed to promoting green logistics and environmental policies to support sustainable logistics systems and reduce carbon footprints[150] - The board is committed to sustainable development and has established short-term and long-term sustainability goals to achieve continuous emission reductions[139] Supplier and Quality Management - The company regularly reviews supplier performance, turnaround times, and pricing terms before renewing contracts[11] - The company has a quality control team responsible for maintaining and reviewing quality management procedures to ensure high service standards[16] - The company has a zero-tolerance policy towards bribery and corruption, ensuring that only suppliers with a good track record are selected for partnerships[13] Risk Management - The company has not reported any significant non-compliance or violations related to anti-corruption activities during the reporting period[51] - The company continues to monitor foreign exchange risks and will consider using appropriate derivative instruments if necessary[155] - The company has no significant contingent liabilities as of December 31, 2023[158] Strategic Planning and Future Outlook - The company remains optimistic about the future of logistics in Malaysia and is committed to sustainable development and carbon neutrality[196] - The company is focused on developing intermodal terminals along the KTM railway line and plans to expand strategically along the ECRL railway line in the future[199]

Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of 371,105,000 MYR, an increase of approximately 4.0% from 356,870,000 MYR in 2022[12] - The gross profit for the same period was 68,941,000 MYR, down from 76,636,000 MYR in 2022, reflecting a decrease of about 10.1%[12] - The net profit for the year was 18,379,000 MYR, a significant decline of approximately 48.9% compared to 35,882,000 MYR in the previous year[12] - The company reported a basic and diluted earnings per share of 0.89 MYR cents for the year, down from 1.75 MYR cents in 2022[28] - The group reported a pre-tax profit of RM 24,515,000 for the year, reflecting a strong operational performance despite financial expenses of RM 12,245,000[60] - The company reported a net profit of RM 18,379,000 for the year, demonstrating resilience in a competitive market[60] - The company recorded a net profit before tax of 54,668 thousand MYR in 2023, compared to 48,147 thousand MYR in 2022, indicating an increase of 13%[100] Revenue Breakdown - The logistics center and related services revenue increased by about 16.4% to approximately 82,409,000 MYR, driven by higher demand for yard services[5] - The total revenue for the year ended December 31, 2023, was RM 364,391,000, with a significant contribution from the container liquid bag solutions segment, generating RM 114,300,000[60] - The logistics center and related services segment achieved a revenue of RM 75,695,000, contributing to the overall profitability of the group[60] - Air freight service revenue increased to 6,727 thousand MYR in 2023 from 3,145 thousand MYR in 2022, representing a growth of 114%[75] - Container liquid bag solutions revenue rose to 114,300 thousand MYR in 2023, up from 93,690 thousand MYR in 2022, marking a 22% increase[77] - Total revenue from logistics center and related services was 75,695 thousand MYR in 2023, compared to 63,587 thousand MYR in 2022, reflecting a growth of 19%[92] - Revenue from land transportation services increased by approximately 12.6% to about 70,869,000 MYR for the year ended December 31, 2023, driven by increased demand for bridge and land branch services[141] - Revenue from integrated freight forwarding services decreased by approximately 17.0% to about RM 90,492,000 due to a slowdown in global trade and increased competition[162] - Revenue from fourth-party logistics services decreased by approximately 36.0% to about 13,035,000 MYR for the year ended December 31, 2023, attributed to a reduction in customer shipments within this service category[143] Expenses and Costs - The financial expenses for the year were 12,245,000 MYR, an increase from 8,800,000 MYR in the previous year, reflecting a rise of approximately 39.5%[12] - The group incurred administrative and other operating expenses totaling RM 32,567,000, which impacted the net profit margin[60] - The depreciation expense for the year was RM 22,503,000, reflecting the ongoing investment in property, plant, and equipment[60] - The company's operating expenses totaled 36,530 thousand MYR in 2023, reflecting the ongoing operational costs[83] - The group's operating costs for the year ended December 31, 2023, totaled approximately 302,164,000 MYR, an increase of about 21,930,000 MYR or 7.8% compared to the previous year[197] Assets and Equity - The company's total assets as of December 31, 2023, were approximately 522,819,000 MYR, compared to 468,438,000 MYR in 2022, indicating a growth of about 11.6%[21] - The company's net asset value increased to 339,675,000 MYR in 2023 from 308,313,000 MYR in 2022, representing an increase of approximately 10.2%[21] - The total equity attributable to the company's shareholders increased to RM 334,260,000 in 2023, up from RM 308,191,000 in 2022, indicating a growth of approximately 8.5%[50] - The total capital and reserves of the group reached RM 339,675,000, an increase from RM 308,313,000 in the previous year[50] - The company's interest-bearing borrowings amounted to approximately RM 128,086,000, an increase from RM 83,120,000 in 2022, with a weighted average effective interest rate of approximately 5.05%[161] - The debt-to-equity ratio as of December 31, 2023, was approximately 0.69, compared to 0.66 in 2022[161] Strategic Focus and Future Outlook - The company has not announced any new products or technologies during the reporting period, focusing instead on operational efficiency and market expansion strategies[22] - The company aims to enhance its core principles while embracing new challenges for growth and business expansion in the coming year[145] - The company is focusing on digital transformation to empower and enhance employee skills within a diamond-shaped organizational structure[144] - The company plans to adopt a more comprehensive approach in the coming year, investing in digitalization and automation to enhance efficiency and customer experience[164] - The company anticipates that the upcoming year will be crucial for achieving its goals and vision[145] Employee and Workforce - The company employed a total of 908 employees in Malaysia as of December 31, 2023, an increase from 657 employees in 2022, with employee costs amounting to approximately RM 54,668,000[150] - The total cost of employees was reported, but specific figures were not detailed in the provided content[122] Dividends - The company did not declare a final dividend for the year ended December 31, 2023, consistent with the previous year[111] - The board did not recommend a final dividend for the fiscal year ending December 31, 2023, consistent with the previous year[172] Other Information - The company’s trade receivables net impairment loss was 165,000 MYR, a decrease from 922,000 MYR in 2022, indicating improved credit management[12] - The company has adopted new and revised international financial reporting standards, which are not expected to have a significant impact on the group's financial statements[53] - Other income for the group was approximately 536,000 MYR, a decrease of about 2,937,000 MYR or 84.6% compared to the previous year, primarily due to the net gain from the sale of warehouses recorded last year[197] - The group maintained a healthy liquidity position for the year ended December 31, 2023, following a prudent financial and earnings fund management policy[198] - There were no significant events affecting the group reported after the reporting period and up to the date of this announcement[199]

Financial Performance - For the six months ended June 30, 2023, the company recorded revenue of approximately MYR 181,905,000, representing a year-on-year increase of about 1.2% from MYR 179,709,000 in the same period of 2022[26]. - Gross profit for the same period was approximately MYR 37,249,000, a decrease of about 17.6% compared to MYR 45,225,000 in the previous year, resulting in a gross margin decline from 25.2% to 20.5%[26]. - The company reported a net profit of approximately MYR 16,628,000 for the six months ended June 30, 2023, down from MYR 21,810,000 in the prior year, reflecting a net profit margin decrease from 12.2% to 9.1%[26]. - The company's total comprehensive income for the period was 22,146 thousand MYR, down from 27,774 thousand MYR in 2022, a decline of about 20.2%[103]. - Basic and diluted earnings per share were 0.81 sen, down from 1.06 sen in the previous year, a decrease of approximately 23.6%[106]. - The pre-tax profit for the six months ended June 30, 2023, was RM 18,697 thousand, down from RM 24,208 thousand in the previous year, indicating a decrease of approximately 22.9%[163]. Revenue Breakdown - Revenue from land transportation services increased by approximately 33.2% to about MYR 37,001,000, driven by higher demand for bridge and land feeder services[29]. - Revenue from container liquid bag solutions and related services rose by approximately 21.8% to about MYR 54,840,000, although gross profit from this segment decreased by about 8.7% to approximately MYR 11,229,000 due to rising operational costs[30]. - For the six months ended June 30, 2023, the revenue from logistics center and related services increased by approximately 15.5% to about 42,453,000 MYR, driven by increased demand for yard services[48]. - The revenue from integrated freight forwarding services decreased significantly by approximately 26.7% to about 41,387,000 MYR, primarily due to reduced earnings from freight forwarding activities impacted by declining freight rates[50]. - The revenue from fourth-party logistics services saw a substantial decline of approximately 54.5% to about 6,224,000 MYR, attributed to a decrease in customer freight handling[51]. - Revenue from external customers for Malaysia increased to 105,668 thousand MYR in 2023 from 102,953 thousand MYR in 2022, representing a growth of 2.2%[176]. - Revenue from warehousing and container yard services rose to 39,733 thousand MYR in 2023 from 32,824 thousand MYR in 2022, marking an increase of 20.9%[187]. Costs and Expenses - The total cost of goods sold for the six months ended June 30, 2023, was approximately MYR 144,656,000, an increase of about 7.6% compared to the previous year, primarily due to higher depreciation and employee expenses[31]. - The employee cost for the six months ended June 30, 2023, was approximately 25,305,000 MYR, compared to 19,678,000 MYR for the same period in 2022, reflecting an increase of about 28%[79]. - The group’s total employee costs increased to 22,709 thousand MYR in 2023 from 17,543 thousand MYR in 2022, an increase of 29.5%[192]. - The company incurred financial expenses of RM 5,640 thousand for the six months ended June 30, 2023[157]. - The group’s interest expenses rose to 5,640 thousand MYR in 2023 from 3,914 thousand MYR in 2022, an increase of 44.1%[193]. Assets and Liabilities - As of June 30, 2023, the group held cash and bank balances of approximately 38,661,000 MYR, compared to 39,572,000 MYR as of December 31, 2022[56]. - The group’s total borrowings amounted to approximately 130,703,000 MYR as of June 30, 2023, up from 83,120,000 MYR as of December 31, 2022, with a weighted average effective interest rate of about 3.66%[56]. - The asset-to-equity ratio as of June 30, 2023, was 0.76, compared to 0.66 as of December 31, 2022[56]. - Current liabilities rose to 117,986 thousand MYR from 94,476 thousand MYR, indicating an increase of approximately 24.9%[107]. - The company's total assets less current liabilities stood at 521,822 thousand MYR, up from 468,438 thousand MYR, reflecting an increase of about 11.4%[124]. - The total equity attributable to the company's shareholders was 330,550 thousand MYR, compared to 308,191 thousand MYR at the end of 2022, an increase of approximately 7.2%[124]. Strategic Initiatives - The company has initiated the launch of a new warehouse named "Freight Village 5" and a new concept for multimodal terminals, which are expected to provide stable revenue sources[17]. - The company is collaborating with renowned universities to develop proprietary internal software using artificial intelligence and is adopting automation in its manufacturing processes[32]. - The company aims to achieve sustainable development in a greener and more environmentally friendly manner while maintaining resilience during economic slowdowns[32]. - The company continues to explore new opportunities aligned with its core strengths and principles despite the current economic downturn and declining global freight rates[17]. - The company plans to continue expanding its logistics services and exploring new market opportunities in the upcoming quarters[134]. - The company is focused on enhancing its operational efficiency through the development of new technologies and services in the logistics sector[134]. - The management remains optimistic about future growth prospects, driven by increased demand for logistics services and strategic investments[134]. Shareholder Information - As of June 30, 2023, Dato' Seri Chan Kong Yew and Dato' Kwan Siew Deeg each hold 1,343,686,000 shares, representing approximately 65.10% of the company's total shares[67]. - Tan Sri Datuk Tan holds 146,310,000 shares, which accounts for 7.09% of the company's total shares[69]. - 2926 Holdings Limited, a major shareholder, holds 40.88% of the company's issued shares, with Dato' Seri Chan and Dato' Kwan owning 63.9% and 36.1% of 2926 Holdings, respectively[68]. - No other individuals or entities, apart from those disclosed, hold 5% or more of the company's shares as of June 30, 2023[75]. Cash Flow and Investments - The company reported a net cash decrease of 5,712 thousand MYR for the six months ended June 30, 2023, compared to a decrease of 29,544 thousand MYR in the same period of the previous year[145]. - Cash and cash equivalents at the end of the reporting period were 24,101 thousand MYR, an increase from 17,699 thousand MYR at the end of June 30, 2022[145]. - The company incurred a net cash outflow from investing activities of 65,453 thousand MYR for the six months ended June 30, 2023[144]. - The financing activities generated a net cash inflow of 32,551 thousand MYR during the reporting period, compared to an outflow of 5,507 thousand MYR in the previous year[145]. - The total cash outflow for the acquisition of subsidiaries was RM 66,079 thousand during the investment activities[163]. - The company reported a total of RM 11,775 thousand in capital expenditures for property, plant, and equipment for the six months ended June 30, 2023[157].

Revenue Performance - Revenue for the six months ended June 30, 2023, was RM 181,905 thousand, a slight increase from RM 179,709 thousand in the same period of 2022, representing a growth of 1.3%[19] - Total customer contract revenue for the six months ended June 30, 2023, was 181,905 thousand MYR, compared to 179,709 thousand MYR for the same period in 2022, representing an increase of approximately 1.3%[60] - The total revenue from external customers in Malaysia was 105,668 thousand MYR for the six months ended June 30, 2023, up from 102,953 thousand MYR in the same period of 2022, reflecting a growth of approximately 2.1%[60] - The company recorded revenue of approximately 181,905,000 MYR for the six months ended June 30, 2023, an increase of about 1.2% compared to 179,709,000 MYR for the same period in 2022[155] Profitability - Gross profit decreased to RM 37,249 thousand, down from RM 45,225 thousand year-over-year, reflecting a decline of 17.9%[19] - The company reported a net profit of RM 16,628 thousand for the six months ended June 30, 2023, compared to RM 21,810 thousand in the prior year, a decrease of 23.5%[20] - The basic and diluted earnings per share for the period were 0.81 sen, down from 1.06 sen in the same period last year, a decrease of 23.6%[20] - The company reported a net profit of 16,628 thousand MYR for the six months ended June 30, 2023, compared to 18,697 thousand MYR in the same period of 2022, indicating a decline in profitability[58] Expenses and Costs - Financial expenses for the period were RM 5,640 thousand, up from RM 3,914 thousand in the previous year, indicating a rise of 43.9%[19] - The company reported administrative and other operating expenses of 18,167 thousand MYR for the six months ended June 30, 2023, compared to 12,863 thousand MYR in the previous period, indicating a significant increase in operational costs[39] - The company incurred financial expenses of 3,914 thousand MYR for the six months ended June 30, 2023, compared to 2,765 thousand MYR in the previous period, indicating an increase in financing costs[39] - The cost of goods sold for the six months ended June 30, 2023, totaled approximately 144,656,000 MYR, an increase of about 7.6% from the previous year[135] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RM 217,575 thousand, an increase from RM 194,998 thousand as of December 31, 2022, representing a growth of 11.5%[3] - Current liabilities increased to RM 117,986 thousand from RM 94,476 thousand, marking a rise of 24.9%[4] - The company's total equity rose to RM 330,459 thousand as of June 30, 2023, compared to RM 308,313 thousand at the end of 2022, an increase of 7.2%[22] - The company's total lease liabilities amounted to approximately 106,323,000 MYR as of June 30, 2023, compared to 105,637,000 MYR at the end of 2022[139] Operational Highlights - The logistics center and related services segment generated a gross profit of 9,835 thousand MYR, while the fourth-party logistics segment contributed 3,066 thousand MYR for the six months ended June 30, 2023[38] - Revenue from logistics center and related services increased by approximately 15.5% to about 42,453,000 MYR for the six months ended June 30, 2023, compared to 36,762,000 MYR for the same period last year[108] - Revenue from integrated freight forwarding services decreased significantly by approximately 26.7% to about 41,387,000 MYR, primarily due to reduced freight forwarding activity[109] - The company has launched a new warehouse named "Freight Village 5" and a new multimodal terminal concept, which are expected to provide stable revenue sources[113] Employee and Tax Information - As of June 30, 2023, the company employed approximately 901 staff, an increase from about 621 staff a year earlier, with employee costs amounting to approximately 25,305,000 MYR[119] - The company’s income tax expense for the six months ended June 30, 2023, was 2,069 thousand MYR, down from 2,398 thousand MYR in the same period of 2022, a decrease of approximately 13.7%[95] Future Outlook - The company aims to enhance resilience in the current economic climate and is focusing on sustainable development through automation and AI collaboration with universities[137][156] - The company has not adopted any new or revised International Financial Reporting Standards that would have a significant impact on its performance in the future[26]

Environmental Impact and Sustainability - The company achieved a reduction in air pollutant emissions density, maintaining or decreasing it compared to the previous year, with a sulfur dioxide emission of 0.05 tons in 2022, up from 0.04 tons in 2021[22]. - Greenhouse gas emissions density was also maintained or reduced, achieving the target set for 2022, with a nitrogen oxide emission of 55.04 tons in 2022, compared to 49.39 tons in 2021[22]. - The company has set preliminary directional targets for emission reductions, including air pollutants and greenhouse gases, as part of its commitment to sustainable operations[19]. - The company aims to achieve carbon neutrality by 2030 as part of its environmental, social, and governance (ESG) initiatives[83]. - The total greenhouse gas emissions for 2022 amounted to 8,810.19 tons, an increase of 25.4% from 7,031.47 tons in 2021[172]. - Scope 1 direct emissions were reported at 8,040.52 tons, up from 6,441.66 tons in the previous year, representing a 24.8% increase[172]. - Scope 2 indirect emissions from purchased electricity and gas were 769.67 tons, compared to 589.81 tons in 2021, marking a 30.5% increase[172]. - The total energy consumption for 2022 was 33,739,321.16 kWh, which is a 24.6% increase from 27,047,702.86 kWh in 2021[195]. - Water consumption for 2022 was reported at 12,688.00 tons, an increase from 9,538.00 tons in 2021[179]. - The company aims to reduce resource consumption by implementing measures such as installing solar panels and improving packaging efficiency[169][175]. - The company has obtained ISO 14001:2015 environmental management system certification since March 2021, indicating a commitment to minimizing environmental impact[197]. - The company is actively monitoring climate-related risks and implementing measures to mitigate potential impacts from climate change[198]. Waste Management - Hazardous waste generated in 2022 was 2.35 tons, up from 1.78 tons in 2021, while non-hazardous waste decreased to 72.82 tons from 154.00 tons[42]. - The total waste generated in 2022 was 75.17 tons, a reduction from 155.78 tons in 2021, indicating a significant decrease in overall waste[42]. - The density of waste per thousand ringgit revenue improved to 0.0002 tons in 2022 from 0.0006 tons in 2021[42]. - The company generated 2.35 tons of hazardous waste in 2022, up from 1.78 tons in 2021[170]. Employee and Workforce Management - The company reported a total employee turnover rate of 32% in 2022, up from 19% in 2021, with a significant increase in female turnover from 15% to 63%[36]. - Employee count in 2022 was 225,657, an increase from 186,574 in 2021, with a gender distribution of 66% female and 34% male[52]. - The employee turnover rate was monitored, with a focus on maintaining a safe working environment and addressing any unsafe conditions immediately[53]. - The company emphasizes employee training and development, providing practical training on logistics, customer service, safety, and quality management[50]. - The company is continuously assessing its human resources to determine if additional personnel is needed to support business development[199]. - The company emphasizes the importance of a diverse and harmonious work environment to attract and retain talented employees in a competitive labor market[199]. - The board consists of two female and six male directors, maintaining a satisfactory level of gender diversity as of December 31, 2022[34]. - The company is committed to board diversity to support strategic goals and sustainable development, in line with corporate governance codes[200]. Financial Performance - For the fiscal year ending December 31, 2022, the company's revenue was approximately MYR 356,870,000, an increase of about 29.5% compared to MYR 275,561,000 in the previous year[81]. - The gross profit for the same period was approximately MYR 76,636,000, reflecting a growth of about 9.4%, with a gross margin of approximately 21.5%[81]. - The net profit for the fiscal year was approximately MYR 35,882,000, down from MYR 42,516,000 in 2021[112]. - The operating costs totaled approximately MYR 280,234,000, an increase of about MYR 74,715,000 or 36.4% compared to the previous year[117]. - The company reported other income of approximately MYR 3,473,000, an increase of about 120.6% compared to the previous year, mainly from warehouse sales and lease adjustments[90]. - The total capital expenditure for the fiscal year was approximately MYR 165,151,000, compared to MYR 80,571,000 in the previous year[96]. Operational Efficiency and Digitalization - The company continues to invest in digitalization and system improvements to enhance operational efficiency and customer service[75]. - The company plans to prioritize digital transformation and international partnerships to enhance performance and productivity[108]. - The company has implemented energy-efficient measures, including the use of LED lighting in production workshops and offices[25]. - The company has established an Environmental, Social, and Governance (ESG) Committee to coordinate efforts across departments and ensure alignment with stakeholder expectations[130]. Compliance and Governance - The company has not incurred significant costs related to compliance with applicable environmental regulations in the past and does not expect to do so in the future[18]. - The company has not encountered any significant violations of applicable environmental laws and regulations during the reporting period[143]. - The board conducts an annual review of the environmental, social, and governance report to ensure alignment with the company's vision and goals[9]. - The board is responsible for evaluating and determining the company's ESG-related risks and ensuring effective risk management systems are in place[157]. - The company will continue to assess its business impact on key ESG aspects and include findings in its ESG report[160]. - The company has engaged stakeholders to identify significant issues and ensure meaningful disclosures[132]. - The company aims to enhance safety management and comply with government oversight and assessments[136].

Financial Performance - The total comprehensive income for the year ended December 31, 2022, was 42,556 thousand MYR, compared to 43,770 thousand MYR in 2021, representing a decrease of approximately 2.77%[16] - The group’s total revenue for the year was 35,882 thousand MYR, a decrease from 42,516 thousand MYR in the previous year, reflecting a decline of approximately 15.4%[14] - The company reported a net profit of RM 35,882,000 for the year, compared to RM 42,516,000 in 2021, showing a decrease of approximately 15%[28] - The operating profit before tax for the year was RM 33,873,000, down from RM 48,666,000 in the previous year, indicating a decline of about 30%[42] - Gross profit for the same period was approximately 76,636,000 MYR, an increase of about 9.4% from 70,042,000 MYR, with a gross margin decrease from approximately 25.4% to 21.5%[93] - The company recorded a pre-tax profit of approximately 33,873,000 MYR, down from 48,666,000 MYR in the previous year[104] - The company’s basic and diluted earnings per share for the year were 1.75 sen, down from 2.10 sen in the previous year[125] Revenue Breakdown - Revenue from customer contracts defined under IFRS 15 was RM 349,659,000, with contributions from various segments including RM 109,068,000 from freight forwarding services and RM 93,690,000 from container liquid bag solutions[28] - Revenue from logistics centers and related services increased by approximately 46.8% to about 70,798,000 MYR for the year ended December 31, 2022, primarily due to increased income from warehousing and ancillary services[54] - Revenue from integrated freight forwarding services included air freight income of 3,145,000 MYR, sea freight income of 49,109,000 MYR, freight forwarding income of 20,023,000 MYR, and non-vessel operating common carrier income of 36,791,000 MYR[61] - Revenue from container liquid bag solutions and related services increased by approximately 10.4% to about 93,690,000 MYR for the year ended December 31, 2022, mainly due to the appreciation of the US dollar[81] - Revenue from land transportation services increased by approximately 33.6% to about 62,940,000 MYR, primarily due to the performance of a newly acquired subsidiary and the purchase of new vehicles[94] - Revenue from external customers for 2022 was MYR 356,870,000, a 29.5% increase from MYR 275,561,000 in 2021[166] Expenses and Costs - The total administrative and operational expenses amounted to RM 36,530,000, reflecting an increase compared to the previous year's expenses[28] - Employee costs totaled RM 48,147,000, which is an increase from RM 30,942,000 in the prior year, indicating a rise of about 55%[36] - The company incurred financial expenses of RM 8,800,000, which includes RM 6,117,000 in lease liabilities interest[28] - Operating costs totaled approximately 280,234,000 MYR, an increase of about 36.4% or 74,715,000 MYR compared to the previous year[95] - Employee costs, including director remuneration, amounted to approximately 48,147,000 MYR for the year ended December 31, 2022, compared to 30,942,000 MYR in the previous year[87] Assets and Liabilities - Non-current assets increased to 367,916 thousand MYR in 2022 from 227,422 thousand MYR in 2021, representing a growth of approximately 61.9%[126] - Current assets rose to 194,998 thousand MYR in 2022, compared to 185,612 thousand MYR in 2021, marking an increase of about 5.4%[126] - Total liabilities increased to 160,125 thousand MYR in 2022 from 79,251 thousand MYR in 2021, reflecting a significant rise of approximately 102.5%[126] - The net asset value reached 308,313 thousand MYR in 2022, up from 265,499 thousand MYR in 2021, indicating an increase of around 16.1%[126] - Trade and other receivables grew to 130,584 thousand MYR in 2022, compared to 114,067 thousand MYR in 2021, which is an increase of approximately 14.5%[126] - Inventory levels increased to 21,193 thousand MYR in 2022 from 15,741 thousand MYR in 2021, representing a growth of about 34.5%[126] - Interest-bearing loans rose to 10,646 thousand MYR in 2022, compared to 5,037 thousand MYR in 2021, reflecting an increase of approximately 111.5%[126] - The company reported a borrowing cost of 8,800 thousand MYR in 2022, up from 5,209 thousand MYR in 2021, which is an increase of about 68.5%[144] Strategic Focus and Developments - The group operates in various segments, including fourth-party logistics services, which are crucial for its operational strategy[13] - The group is focused on enhancing its logistics capabilities, which is essential for maintaining competitive advantage in the logistics sector[13] - The company is focusing on digitalization and the application of new technologies to improve customer experience[96] - The company plans to invest in human capital by increasing employee numbers as part of its business expansion strategy[200] - The company is investing in solar technology to reduce carbon emissions[200] - The group plans to adopt a more comprehensive approach to environmental, social, and governance practices in the coming year, aiming for business expansion and development[82] Compliance and Reporting - The group has adopted new and revised International Financial Reporting Standards, which are not expected to have a significant impact on the consolidated financial statements[12] - The group’s financial reporting adheres to the latest accounting standards, ensuring compliance and transparency in its financial disclosures[12] - The financial statements are presented in Malaysian Ringgit (MYR), with amounts rounded to the nearest thousand MYR, ensuring clarity in financial reporting[7] Shareholder Information - The total number of shares outstanding as of December 31, 2022, was 2,064,000,000, an increase from 2,026,301,370 shares in the previous year[43] - The group did not recommend the payment of a final dividend for the year ended December 31, 2022, consistent with the previous year[88]

Financial Performance - For the six months ended June 30, 2022, the company reported revenue of approximately MYR 179.7 million, a 40.4% increase compared to MYR 128.0 million for the same period in 2021[9]. - Gross profit for the same period was approximately MYR 45.2 million, reflecting a 47.2% increase from MYR 30.7 million in the previous year, with a gross margin of 25.2%[9][13]. - Net profit for the six months ended June 30, 2022, was approximately MYR 21.8 million, up from MYR 17.7 million in the prior year[9][13]. - The company achieved a profit before tax of 24,208 thousand MYR, representing a 16.0% increase compared to 20,739 thousand MYR in the previous year[59]. - Total comprehensive income for the period amounted to 27,774 thousand MYR, compared to 20,014 thousand MYR in the same period last year, reflecting a 38.9% increase[61]. - The company reported a net profit of 21,810 thousand MYR for the six months ended June 30, 2022, compared to 17,720 thousand MYR for the same period in 2021, indicating a year-over-year increase of approximately 23.5%[94]. - The group reported a profit attributable to owners of RM 21,762,000 for the six months ended June 30, 2022, compared to RM 17,720,000 for the same period in 2021, representing a growth of approximately 22.9%[121]. Revenue Segmentation - The logistics center and related services segment saw revenue increase by 56.2% to approximately MYR 36.8 million, driven by higher demand for warehousing services[16]. - The land transportation services segment's revenue increased by 28.4% to approximately MYR 27.8 million, attributed to the acquisition of a subsidiary engaged in transportation services[18]. - The integrated freight forwarding services segment experienced a revenue growth of 36.3% to approximately MYR 56.5 million, supported by increased demand following the reopening of international borders[18]. - Revenue from Malaysia accounted for the largest share at 102,953 thousand MYR in 2022, up from 73,801 thousand MYR in 2021, reflecting a growth of approximately 39.5%[100]. - The revenue breakdown for the six months ended June 30, 2022, included 56,455 thousand MYR from integrated freight forwarding services, 36,762 thousand MYR from logistics center and related services, and 27,772 thousand MYR from land transportation services[90]. Asset and Equity Growth - Total non-current assets as of June 30, 2022, were approximately MYR 325.3 million, compared to MYR 227.4 million at the end of 2021[12]. - The company's net asset value increased to approximately MYR 293.1 million as of June 30, 2022, from MYR 265.5 million at the end of 2021[12]. - The company's total assets as of June 30, 2022, were 420,395 thousand MYR, an increase from 344,750 thousand MYR as of December 31, 2021[66]. - The company's equity totalled 293,140 thousand MYR as of June 30, 2022, up from 265,499 thousand MYR at the end of 2021, reflecting a growth of 10.4%[66]. Costs and Expenses - Operating costs totaled approximately RM 134,484,000, an increase of RM 37,166,000 or 38.2% compared to the same period in 2021[19]. - Employee costs for the six months ended June 30, 2022, were approximately RM 19,678,000, compared to RM 14,407,000 for the same period in 2021[31]. - The total administrative and other expenses for the period were (18,167) thousand MYR, indicating a need for cost management strategies moving forward[90]. - The income tax expense for the six months ended June 30, 2022, was 2,398 thousand MYR, down from 3,019 thousand MYR in 2021, indicating a decrease of about 21%[117]. Cash Flow and Liquidity - As of June 30, 2022, the group held cash and bank balances of approximately RM 33,125,000, down from RM 53,684,000 as of December 31, 2021[23]. - The company experienced a net decrease in cash and cash equivalents of 29,544 thousand MYR during the reporting period[75]. - The company’s cash and cash equivalents at the end of the reporting period stood at 17,699 thousand MYR, down from 61,506 thousand MYR at the beginning of the period[75]. - Cash generated from operating activities was 26,552 thousand MYR, compared to 21,390 thousand MYR in the previous year, indicating a significant increase in operational efficiency[75]. Debt and Liabilities - The total lease liabilities amounted to approximately RM 99,349,000, an increase from RM 38,975,000 as of December 31, 2021[23]. - The group recorded interest-bearing borrowings of approximately RM 48,790,000 as of June 30, 2022, compared to RM 45,687,000 as of December 31, 2021[23]. - The debt-to-equity ratio was 0.56 as of June 30, 2022, up from 0.37 as of December 31, 2021[23]. - The current portion of secured bank borrowings was RM 10,703,000 as of June 30, 2022, up from RM 5,037,000 as of December 31, 2021, representing a significant increase of approximately 112.9%[147]. Corporate Governance and Compliance - The company adhered to the corporate governance code as per the Hong Kong Stock Exchange, with only one regular board meeting held during the six-month period ending June 30, 2022[36]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim results for the six months ending June 30, 2022[42]. - The company has implemented internal control measures and procedures to comply with regulatory changes and best practices[39]. - The company confirmed that all directors complied with the standard code for securities trading during the reporting period[40]. Future Outlook and Strategic Developments - The company is expanding its trucking fleet to support the growth of its land transportation services, which is expected to become a core business segment[15]. - The company is focused on expanding its logistics and transport services, including integrated freight forwarding and fourth-party logistics[78]. - The company has a significant commitment to future lease payments, with 8,165 million MYR due within one year as of June 30, 2022, compared to 6,830 million MYR in the previous year[172]. - The company entered into a conditional share purchase agreement to acquire Access World Group Holdings B.V. for a total consideration of 176.7 million USD (approximately 740.0 million MYR), with a maximum consideration of 180 million USD (approximately 753.8 million MYR)[176].

Acquisition and Expansion - Infinity Logistics and Transport Ventures Limited signed a share purchase agreement with Glencore Plc to acquire its warehousing and logistics business, expanding operations to 25 countries globally[24]. - The acquisition of 70% of a company focused on freight forwarding and cross-border transportation marks the first acquisition for Infinity, aimed at strengthening its third-party logistics capabilities[30]. - The company is committed to continuing its acquisition activities to enhance its investment portfolio and access larger markets[25]. - Infinity Logistics and Transport Ventures Limited is focused on expanding its global customer base through the integration of existing networks from acquisitions[25]. - The company has a vision to provide end-to-end logistics solutions, leveraging synergies from the merger with Glencore's logistics operations[25]. Financial Performance - The company's revenue for the fiscal year was approximately MYR 275,561,000, an increase of about 23.2% compared to the previous fiscal year (MYR 223,669,000)[31]. - Gross profit reached approximately MYR 70,042,000, reflecting a 32.1% increase from the previous fiscal year's gross profit of MYR 53,013,000, with a gross margin improvement from 23.7% to 25.4%[31]. - Net profit for the year was approximately MYR 42,516,000, up from MYR 25,109,000 in the previous fiscal year[31]. - The logistics center segment recorded the highest revenue growth of approximately 28.7%, attributed to the commencement of yard services and increased demand for warehouse storage during the pandemic[31]. - The container liquid bag solutions segment saw a revenue increase of approximately 23.1%, driven by improved sales from major customers[31]. - The land transportation segment experienced an 18.8% revenue growth due to increased demand for transportation services[31]. - The integrated freight forwarding segment's revenue grew by approximately 10.6%, primarily due to increased revenue from maritime services[31]. - The newly launched fourth-party logistics segment generated revenue of approximately MYR 9,600,000[31]. Sustainability and Environmental Goals - The company aims to achieve carbon neutrality by 2025 through the adoption of environmental, social, and governance initiatives[36]. - The company has established short-term and long-term sustainability goals, integrating climate-related issues and ESG elements into its long-term business strategy[73]. - The company aims to achieve carbon neutrality by 2025 by reducing and offsetting carbon emissions from its operations[97]. - Long-term goals include planting one tree for every container liquid bag produced and implementing measures to maintain or reduce air pollutant emissions[97]. - The company plans to convert all diesel material handling equipment to electric equipment in phases[99]. - The company is committed to following green building standards for warehouses and implementing a motive replacement policy to reduce emissions[98]. - The company actively promotes green logistics and environmental policies to support sustainable logistics systems[94]. - The company has established environmental policies to minimize the impact on natural resources and is committed to monitoring climate-related risks[115][117]. Governance and Compliance - The company emphasizes compliance with Malaysian environmental laws and regulations, with no significant costs expected from compliance in the future[94]. - The board of directors is responsible for overseeing the company's ESG matters and ensuring effective risk management systems are in place[74]. - The company has a board of directors that held only two regular meetings during the reporting period to discuss various matters, including annual and interim performance[159]. - The company has established procedures for directors to seek independent professional advice at the company's expense[170]. - The company maintains a clear delineation of responsibilities between the board and management to ensure effective governance[177]. - The Audit Committee consists of three independent non-executive directors, responsible for maintaining relationships with auditors, reviewing financial information, and overseeing the financial reporting system and risk management[185]. - The company emphasizes compliance with legal and regulatory requirements, as well as the effectiveness of its internal control and risk management systems[186]. Employee and Workplace Safety - The total number of employees as of December 31, 2021, was 574, an increase from 490 in 2020, with employee costs amounting to approximately 30,942,000 MYR[65]. - The overall employee turnover rate decreased from 21% in 2020 to 19% in 2021, with male turnover at 21% and female turnover at 15%[124]. - The number of workplace injuries reported was 1 in 2021, down from 4 in 2020, with a total of 35 workdays lost due to injuries[128]. - The company has maintained a zero fatality rate in workplace incidents for three consecutive years from 2019 to 2021[128]. - The company provided training to 42% of male employees and 58% of female employees in 2021, compared to 68% of male and 32% of female employees in 2020[130]. Waste and Emissions - The company generated 1.78 tons of hazardous waste during the reporting period, a significant increase from 0.22 tons in 2020[101]. - Non-hazardous waste amounted to 154.00 tons in 2021, up from 120.00 tons in 2020, resulting in a total waste generation of 155.78 tons[108]. - Greenhouse gas emissions totaled 7,224.90 tons of CO2 equivalent in 2021, an increase of 20.92% from 5,974.67 tons in 2020[103]. - Direct emissions (Scope 1) were 6,635.09 tons in 2021, up from 5,290.49 tons in 2020, while indirect emissions (Scope 2) decreased to 589.81 tons from 684.18 tons[103]. Community Engagement and Social Responsibility - The company made charitable contributions of approximately 66,000 MYR during the reporting period, down from 102,000 MYR in the previous year[156]. - The company is committed to community investment and has established long-term relationships with stakeholders to positively impact community development[156]. - The company provided anti-corruption training to 102 directors and employees during the reporting period, an increase from 61 in the previous year[154]. Supplier Management and Quality Control - The company prioritizes suppliers with ISO 14001 certification and environmentally friendly practices in its supplier selection process[138]. - Quality control measures are in place to ensure high service standards, with regular management reviews and employee training[144]. - The company has established a quality management system that includes supplier selection and operational monitoring to maintain service quality[145].