Financial Performance - For the year ended December 31, 2019, the company's revenue was RM 68,327,729, a decrease of 14% compared to RM 79,989,035 in 2018[5]. - The company reported a loss before taxation of RM 2,209,758 for 2019, compared to a profit of RM 8,904,163 in 2018[5]. - The Group's revenue for FY2019 was approximately RM68.3 million, a decrease of about 14.6% or RM11.7 million compared to RM80.0 million for FY2018[47]. - The Group's cost of sales decreased by approximately 3.7% or RM2.0 million from approximately RM54.2 million in FY2018 to approximately RM52.2 million in FY2019[48]. - Total gross profit for FY2019 decreased by approximately 37.4% or RM9.6 million compared to FY2018[48]. - The decrease in sales volume of coconut-related products was attributed to increased competition and lower coconut prices in 2019[42]. Assets and Liabilities - The total assets of the company as of December 31, 2019, were RM 167,084,721, an increase of 18% from RM 141,812,902 in 2018[5]. - Total liabilities increased significantly to RM 46,839,641 in 2019, up from RM 19,058,746 in 2018, representing a 146% increase[5]. - The net assets of the company decreased slightly to RM 120,245,080 in 2019 from RM 122,754,156 in 2018[5]. - The company attributed a loss of RM 1,844,444 to equity shareholders for the year ended December 31, 2019[5]. Market and Growth Strategy - The company aims to be the preferred global supplier of coconut food products, focusing on quality and nutritional attributes[1]. - The Group is focused on manufacturing and distributing coconut-based food products, with a growing demand for coconut milk and beverages, particularly in Asian countries[23][28]. - Despite the challenges, the Group is optimistic about the growth of coconut-based products, driven by increasing consumer trends towards vegan food and recognition of the nutritional benefits of coconut[25][29]. - The Group aims to enhance brand recognition through aggressive marketing strategies, including rebranding and appointing specialized distributors[32][37]. - Currently, the Group exports products to over 40 countries, with the export market anticipated to be a key source of revenue growth[33][37]. - The Group's strategy includes widening its range of coconut products and enhancing its marketing efforts to become the preferred global supplier[26][29]. Operational Challenges - The global economic environment remains challenging, influenced by the ongoing trade war and the COVID-19 pandemic, which has affected over 100 countries[24][28]. - The Group's operations faced challenges due to the COVID-19 pandemic and related government measures, impacting supply chain and customer ordering processes[40]. - The Group's factory operations continued during the Movement Control Order as it is involved in the food supply sector[43]. Management and Team Experience - Tang Koon Fook has over 20 years of experience in the food industry and has been responsible for overall management and financial management since the group's establishment[60]. - Lee Sieng Poon has over 35 years of experience in the food industry, focusing on sales, marketing, and factory operations[64]. - Yap Boon Teong has over 25 years of experience in the food industry, primarily responsible for implementing new projects and providing technical support[66]. - Wong Yuen Lee has over 15 years of experience in the food industry, overseeing human resources and compliance matters[72]. - The company has a strong management team with extensive experience in various aspects of the food industry, ensuring effective operational oversight[75]. Sustainability and Environmental Practices - The company is committed to sustainable practices, utilizing renewable energy resources and implementing recycling measures[34][36]. - The company emphasizes sustainability as a core value, integrating it into daily operations and committing to environmental protection, community investment, and quality control[141][143]. - The Environmental, Social and Governance (ESG) report outlines sustainability approaches and ESG performances for the period from January 1, 2019, to December 31, 2019[118]. - The company adheres to the ESG Reporting Guide set out by the Hong Kong Exchanges and Clearing Limited to disclose sustainability issues during the reporting period[120]. - The Group has implemented a sustainability policy enforced by the Environmental Performance Monitoring Committee[155]. Product Quality and Innovation - The company focuses on manufacturing and distributing coconut cream powder, low fat desiccated coconut, coconut milk, and related products, which account for the majority of total revenue during the reporting period[119]. - The Group has established an in-house chemical and microbiological testing laboratory to ensure high food quality and safety, critical for customer satisfaction[164]. - The production system is fully automated and centrally monitored, enabling consistent delivery of high-quality products[164]. - The company has invested in technological advancements and systematic manufacturing processes to enhance product quality and freshness[133]. Compliance and Risk Management - The Board of Directors oversees risk management, including ESG-related risks, ensuring that identified risks are prioritized and mitigation actions are implemented[145][146]. - The company is actively involved in compliance and regulatory matters to ensure operational integrity[72]. - During the reporting period, there were no known instances of non-compliance with applicable laws and regulations, including Malaysia's Food Hygiene Regulations 2009[165]. Environmental Impact - In 2019, total greenhouse gas emissions amounted to 9,915.06 tonnes of CO2e, an increase from 8,838.95 tonnes in 2018[188]. - Total energy consumption reached 26,028.34 MWh in 2019, compared to 22,261.27 MWh in 2018, indicating a significant rise in energy usage[188]. - The intensity of greenhouse gas emissions per tonne of production unit rose to 2.33 tonnes of CO2e in 2019, compared to 1.93 tonnes in 2018[188]. - Non-hazardous waste totaled 653.60 tonnes in 2019, an increase from 523.99 tonnes in 2018[191].

Financial Performance - Revenue for the six months ended June 30, 2019, was MYR 34,133,885, a decrease of 16.9% compared to MYR 41,051,640 in 2018[12] - Operating profit for the same period was MYR 1,738,438, down 62.6% from MYR 4,646,597 in 2018[12] - Net profit attributable to owners of the company was MYR 1,284,827, a decline of 63.0% from MYR 3,476,469 in the previous year[12] - Total comprehensive income for the period was MYR 1,346,080, down from MYR 3,158,358 in 2018[20] - Basic and diluted earnings per share were 0.12 sen, compared to 0.32 sen in the previous year[20] - The company reported a profit of MYR 1,003,594 for the six months ended June 30, 2019, compared to MYR 6,295,729 in the same period of 2018, indicating a significant decrease in profitability[24] - The group recorded a net profit attributable to owners of the company of approximately 1.3 million Malaysian Ringgit in the first half of 2019, down from approximately 3.5 million Malaysian Ringgit in the first half of 2018[104] Cash Flow and Liquidity - Cash and cash equivalents decreased by 37.9% to MYR 28,602,767 from MYR 46,089,253 as of December 31, 2018[12] - The company reported a net cash flow from operating activities of MYR 294,992 for the six months ended June 30, 2019, down from MYR 3,812,174 in the same period of 2018[26] - The company incurred a loss of MYR 37,950,542 in cash flow from investing activities for the six months ended June 30, 2019, compared to MYR 8,771,590 in the same period of 2018[27] - As of June 30, 2019, the group's cash and cash equivalents were approximately 28.6 million Malaysian Ringgit, a decrease of about 17.4 million Malaysian Ringgit from approximately 46.0 million Malaysian Ringgit as of December 31, 2018[109] - The total cash outflow for the six months ended June 30, 2019, is MYR 61,795[73] Assets and Liabilities - Total assets net worth increased by 1.1% to MYR 124,082,749 compared to MYR 122,754,156 at the end of 2018[12] - Total assets increased to MYR 161,980,539 in June 2019, up from MYR 141,812,902 in December 2018, representing a growth of approximately 14.5%[21] - Non-current assets rose significantly to MYR 87,090,932 in June 2019, compared to MYR 49,839,306 in December 2018, marking an increase of about 74.7%[21] - Current assets decreased to MYR 74,889,607 in June 2019 from MYR 91,973,596 in December 2018, a decline of approximately 18.6%[21] - Total liabilities surged to MYR 37,897,790 in June 2019, up from MYR 19,058,746 in December 2018, indicating an increase of around 98.5%[22] - The company’s non-current liabilities increased to MYR 25,447,230 in June 2019, up from MYR 4,393,976 in December 2018, reflecting a rise of approximately 480.5%[22] - The debt-to-equity ratio as of June 30, 2019, was approximately 0.2 times, up from 0.03 times as of December 31, 2018[113] Revenue Breakdown - Revenue from coconut-related products for the six months ended June 30, 2019, was MYR 32,798,037, a decrease of 17.5% compared to MYR 39,823,713 in the same period of 2018[41] - The group's revenue for the first half of 2019 was approximately 34.1 million Malaysian Ringgit, a decrease of about 17.0% or 7.0 million Malaysian Ringgit compared to approximately 41.1 million Malaysian Ringgit in the first half of 2018[94] - Revenue from coconut-related products in the first half of 2019 was 32.8 million Malaysian Ringgit, down by approximately 7.0 million Malaysian Ringgit from about 39.8 million Malaysian Ringgit in the first half of 2018[95] - The group’s total revenue from Southeast Asia was MYR 9,645,191, a decrease of 6.4% from MYR 10,308,809 in 2018[44] - The group reported a pre-tax profit of MYR 268,373 for the six months ended June 30, 2019, compared to MYR 145,532 in 2018, indicating a significant increase[46] Expenses and Costs - Personnel expenses, including director remuneration, increased to MYR 6,463,268 in 2019 from MYR 5,649,389 in 2018, reflecting a rise of 14.4%[50] - The income tax expense for the six months ended June 30, 2019, was MYR 546,988, a decrease of 60% compared to MYR 1,371,465 in 2018[51] - Administrative expenses for the first half of 2019 were approximately 6.7 million Malaysian Ringgit, an increase of about 1.7 million Malaysian Ringgit compared to approximately 5.0 million Malaysian Ringgit in the first half of 2018[99] - The total depreciation expense for the period was MYR 1,182,717, compared to MYR 2,172,761 in the previous period, indicating a decrease of approximately 45.6%[66] Capital Expenditures and Investments - Capital expenditures for the first half of 2019 were approximately 38.0 million Malaysian Ringgit, significantly higher than about 8.8 million Malaysian Ringgit in the first half of 2018, aligning with the group's expansion plans[112] - The company has approved but not contracted capital commitments for property, plant, and equipment amounting to MYR 34,627,850 as of June 30, 2019[79] - The company has allocated MYR 4.7 million for the restoration of production facilities located in Balai Raga, Malaysia, which remains unutilized[123] - The company has invested MYR 1.2 million in new equipment to enhance its R&D capabilities, with MYR 0.1 million already utilized[123] Corporate Governance and Compliance - The company has adopted and complied with all applicable provisions of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules during the first half of 2019[135] - The Audit Committee has reviewed the unaudited condensed consolidated interim results for the first half of 2019 and agreed with the accounting principles and practices adopted by the group[138] Future Outlook and Developments - The group expects the global coconut product market to grow at a compound annual growth rate of 17.8% from 2019 to 2025, indicating optimistic future prospects despite increasing competition[105] - The company has received the certificate of completion for the new factory building in Perak and is in the process of installing new production lines, expected to be completed in the second half of 2019[93] - The company initiated multiple channel and distribution network development initiatives in preparation for the commercial launch of new products from the new factory, expected to begin in early 2020[93] Shareholder Information - The company has a significant shareholder, Tang Koon Fook, holding 567 million shares, representing 52.5% of the company's equity[130] - Lee Sieng Poon, another major shareholder, holds 243 million shares, accounting for 22.5% of the company's equity[130] Employee Information - The company has 307 employees as of June 30, 2019, compared to 273 employees as of June 30, 2018, indicating a growth in workforce[117]

S&P International Holding Limited 椰豐集團有限公司 （於開曼群島註冊成立的有限公司） Stock Code 股份代號：1695 （Incorporated in the Cayman Islands with limited liability） REPORT ANNUAL 年報 2018 HEADQUARTERS & PRINCIPAL PLACE OF BUSINESS No. 27-3, Jalan PJU 5/13, Dataran Sunway Kota Damansara 47810 Petaling Jaya, Selangor Darul Ehsan Malaysia 電話 Tel : 603-6157 2226 圖文傳真 Fax : 603-6157 5226 網址 Website : www.spfood.com 電郵 Email : info@spfood.com S&P International Holding Limited 椰豐集團有限公司 2018 & Vision Mission Our 使命與願景 我們的 S&P Group is pass ...