Financial Performance - For the six months ended June 30, 2024, the company reported revenue of 865.2 million MYR, a significant increase of approximately 50.5% compared to 574.8 million MYR for the same period in 2023[14]. - The company achieved a net profit of 10.1 million MYR for the first half of 2024, a substantial increase of about 312% compared to 2.5 million MYR in the first half of 2023[16]. - The gross profit increased from 29.6 million MYR in the first half of 2023 to 61.8 million MYR in the first half of 2024, marking a growth of approximately 109.1%, with the gross margin improving from 5.1% to 7.1%[22]. - Operating profit rose to 18,897 thousand MYR, up from 5,843 thousand MYR, marking an increase of 223.5%[55]. - Net profit for the period was 10,114 thousand MYR, compared to 2,452 thousand MYR in 2023, reflecting a growth of 312.5%[55]. - Basic and diluted earnings per share increased to 1.15 sen from 0.25 sen, representing a growth of 360%[55]. Sales and Revenue - The sales volume of black scrap metal reached 471,580 tons in the first half of 2024, representing an increase of about 52.7% from 308,891 tons in the first half of 2023[19]. - In the first half of 2024, the company sold 471,580 tons of black scrap metal, generating revenue of 787,399 thousand MYR, compared to 308,891 tons and 538,630 thousand MYR in the same period of 2023, representing an increase of approximately 52.6% in sales volume and 46.2% in revenue[20][21]. Assets and Equity - Total assets increased to 408.7 million MYR as of June 30, 2024, compared to 382.1 million MYR in the previous year[15]. - The company's equity attributable to owners rose to 224.8 million MYR, up from 213.3 million MYR in the previous year[15]. - As of June 30, 2024, the total equity attributable to owners was 224.7 million MYR, up from 213.3 million MYR as of December 31, 2023, including retained earnings of 140.7 million MYR[31]. Expenses - Distribution and selling expenses surged by approximately 130.9% to 26 million MYR in the first half of 2024, up from 11.3 million MYR in the same period of 2023, primarily due to increased transportation costs related to higher scrap metal sales and new iron ore trading activities[23]. - Administrative expenses rose by 24.8% to 16.7 million MYR in the first half of 2024, compared to 13.4 million MYR in the first half of 2023, mainly due to an increase in office and operational staff and salary adjustments[24]. - The total costs for sales, distribution, and administrative expenses reached 864,191 thousand MYR, up from 569,944 thousand MYR, reflecting a 51.6% increase year-over-year[72]. Liabilities and Borrowings - The company's total borrowings increased to 108.6 million MYR as of June 30, 2024, from 98.4 million MYR as of December 31, 2023, primarily used for the procurement of black scrap metal and capital expenditures[31]. - The asset-to-liability ratio as of June 30, 2024, was 0.50, compared to 0.48 as of December 31, 2023[31]. - Total liabilities rose to 186,041 thousand MYR from 169,516 thousand MYR, an increase of 9.7%[57]. Market Conditions and Challenges - The company anticipates challenges in the global steel industry due to ongoing supply-demand imbalances and geopolitical tensions affecting market conditions[16]. - The Malaysian steel industry continues to face structural challenges, including overcapacity and weak local demand, prompting the establishment of an independent committee to assess the industry's outlook[16]. - The company remains committed to enhancing operational efficiency and maintaining a strong market position despite current market volatility[16]. - The company is focused on strategic initiatives to drive sustainable growth and create value for stakeholders[16]. Employee and Shareholder Information - The total employee cost and related expenses for the six months ended June 30, 2024, amounted to 16.7 million MYR, a 51.8% increase from 11.0 million MYR in the same period last year[47]. - The company employed 374 staff as of June 30, 2024, up from 227 staff a year earlier[47]. - Directors and senior executives collectively hold 681,680,000 shares, representing approximately 68.17% of the company[39]. Cash Flow and Investments - Operating cash flow generated net cash of 25,996 thousand MYR for the six months ended June 30, 2024, compared to a net cash used of (3,525) thousand MYR in the same period of 2023[60]. - The net cash used in investing activities was (5,584) thousand MYR for the six months ended June 30, 2024, compared to (3,273) thousand MYR in the prior year[60]. - The group has committed capital expenditures of 28,576 thousand MYR for the purchase of two adjacent vacant land plots as of June 30, 2024, up from 11,757 thousand MYR as of December 31, 2023, reflecting an increase of approximately 143.5%[106].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Heng Hup Holdings Limited 興合控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1891） 截至二零二四年六月三十日止六個月之未經審核中期業績公告 | --- | --- | |-------|------------------------------------------------------------------------------------------------------------------------------------------| | | | | | 財務摘要 | | • | 截至二零二四年六月三十日止六個月的收益為 865.2 百萬馬幣，較截至二零 二三年六月三十日止同期的 574.8 百萬馬幣增加 50.5% 。 | | • | 截至二零二四年六月三十日止六個月的毛利為 61.8 百萬馬幣，較截至二零 二三年六月三十日止同期的 ...

Financial Performance - The company's revenue for the fiscal year 2023 decreased by approximately 4.1% to MYR 1.35 billion from MYR 1.4 billion in the previous fiscal year, primarily due to a drop in average selling prices of ferrous scrap metal [23]. - The net profit attributable to the company's owners surged to MYR 8.24 million in fiscal year 2023, a fivefold increase from MYR 1.48 million in fiscal year 2022, driven by improved procurement and operational efficiency [23]. - The sales volume of ferrous scrap metal reached 725,577 tons, an increase of about 7.5% compared to 675,062 tons in fiscal year 2022, which helped mitigate the revenue decline [23]. - The group’s gross profit increased from 52.33 million MYR in FY2022 to 77.08 million MYR in FY2023, representing a growth of 47.3% due to higher sales of ferrous scrap and reduced procurement costs [80]. - The company achieved a post-tax profit of 8.24 million MYR in fiscal year 2023, a significant increase of approximately 459% from 1.48 million MYR in fiscal year 2022 [74]. - The revenue breakdown for fiscal year 2023 shows that black scrap metal accounted for 93.4% of total revenue, compared to 92.8% in fiscal year 2022 [79]. Assets and Liabilities - Total assets increased to MYR 382.1 million in fiscal year 2023, up from MYR 278.5 million in fiscal year 2022 [8]. - Total liabilities rose significantly to MYR 169.5 million in fiscal year 2023, compared to MYR 74.7 million in fiscal year 2022 [8]. - Total borrowings increased to 98.4 million MYR in FY2023 from 52.3 million MYR in FY2022, primarily used for procurement and capital expenditures [92]. - The current ratio decreased from 3.5 times in FY2022 to 2.0 times in FY2023, while the debt-to-equity ratio increased from 0.27 times to 0.48 times [89]. Corporate Governance - The company has a strong board of directors with diverse backgrounds in finance, accounting, and corporate governance, enhancing its strategic decision-making capabilities [56]. - The board consists of eight members, with three independent non-executive directors, representing one-third of the board [113]. - The company has adopted a board diversity policy, considering various factors such as gender, age, and professional experience in board member selection [112]. - The company has maintained a strong focus on corporate governance to enhance shareholder value and accountability [104]. - The roles of chairman and CEO are held by Sia Kok Chin, which deviates from the corporate governance code, but the board believes this arrangement benefits the group's management [124]. Environmental, Social, and Governance (ESG) Initiatives - The company will continue to focus on environmental, social, and governance (ESG) matters to enhance its sustainable value [24]. - Heng Hup Holdings reported its sixth ESG report, highlighting sustainability measures and stakeholder concerns for 2023 [167]. - The report period covers January 1, 2023, to December 31, 2023, focusing on the environmental and social impacts of the group's operations in Malaysia [168]. - The company aims to minimize negative impacts on the environment and natural resources during operations, ensuring a balance between business development and environmental protection [181]. - The company encourages employee participation in environmental activities to enhance awareness and commitment to sustainability [194]. Operational Efficiency and Market Position - The company plans to focus on optimizing operational efficiency to maintain its market leadership in the Malaysian black scrap metal trade amid ongoing industry challenges [75]. - The company expanded its geographical coverage by establishing a new waste yard in Kedah, enhancing its market position in northern Malaysia [74]. - The company entered the steel slag recycling and iron ore trading business through two new subsidiaries, which contributed to higher profit margins, particularly in iron ore trading [74]. Shareholder Communication - The company emphasizes effective communication with shareholders, providing opportunities for direct interaction during the annual general meeting [156]. - The company has adopted a shareholder communication policy to enhance relationships and ensure timely disclosure of information [158]. - The company ensures that all resolutions at the annual general meeting are voted on independently, with results published promptly [159].

Financial Performance - For the fiscal year ending December 31, 2023, the revenue was 1,346.98 million MYR, a decrease of approximately 4.1% compared to 1,404.58 million MYR in the fiscal year 2022[3] - The gross profit for the fiscal year 2023 was 77.08 million MYR, an increase of approximately 47.3% from 52.33 million MYR in the fiscal year 2022[3] - The profit attributable to owners of the company for fiscal year 2023 was 8.54 million MYR, representing a significant increase of 258.7% compared to 2.38 million MYR in fiscal year 2022[3] - The operating profit for fiscal year 2023 was 17.88 million MYR, compared to 6.47 million MYR in fiscal year 2022[4] - The basic and diluted earnings per share for fiscal year 2023 were 0.85 sen, up from 0.24 sen in fiscal year 2022[4] - The company achieved a post-tax profit of 8.24 million MYR in fiscal year 2023, a significant increase of approximately 459% from 1.48 million MYR in fiscal year 2022[33] Assets and Liabilities - As of December 31, 2023, the equity attributable to owners of the company was 213.30 million MYR, an increase of 4.2% from 204.76 million MYR in 2022[3] - The total assets as of December 31, 2023, amounted to 382.11 million MYR, up from 278.46 million MYR in 2022[5] - The total liabilities increased to 169.52 million MYR in 2023 from 74.68 million MYR in 2022[6] - Total borrowings increased to 98.4 million MYR from 52.3 million MYR year-over-year, primarily for procurement and capital expenditures[48] Revenue Sources - The company generated revenue of 722,142 thousand MYR from its largest customer in 2023, up from 627,551 thousand MYR in 2022, an increase of 15.1%[20] - Total revenue from logistics services was approximately 6.2 million MYR for the fiscal year ended December 31, 2023, as part of the company's regular activities[20] - Black metal sales volume increased to 725,577 tons in fiscal year 2023, up about 7.5% from 675,062 tons in fiscal year 2022, indicating signs of demand recovery[32] Costs and Expenses - The cost of goods sold decreased to 1,246,843 thousand MYR in 2023 from 1,337,299 thousand MYR in 2022, a reduction of 6.8%[22] - The company incurred a net financial expense of 3,528 thousand MYR in 2023, compared to 2,197 thousand MYR in 2022, indicating an increase of 60.6%[22] - The company’s employee benefits expenses rose to 25,868 thousand MYR in 2023 from 20,502 thousand MYR in 2022, an increase of 26.2%[22] - Distribution and selling expenses increased by approximately 23% to 31.68 million MYR in fiscal year 2023, driven by higher domestic transportation costs due to increased sales volume[41] - Administrative expenses rose by approximately 14.4% to 28.55 million MYR in fiscal year 2023, primarily due to increased employee costs and depreciation[42] Dividends - The company decided not to recommend a final dividend for the fiscal year 2023, compared to zero in 2022[3] - The company did not declare any dividends for the fiscal year ended December 31, 2023, compared to 4,467 thousand MYR paid in dividends for the previous year[24] Operational Developments - The company expanded its geographical coverage by establishing a new waste yard in Kedah, enhancing its market position in northern Malaysia[33] - The company entered the steel slag recycling and iron ore trading business through two new subsidiaries in the second half of fiscal year 2023, contributing to higher profit margins[33] - A new waste facility is being established on the east coast of Peninsular Malaysia with an allocation of 4.55 million MYR[59] Financial Ratios - Current ratio decreased to 2.0 from 3.5 year-over-year[46] - Debt-to-equity ratio increased to 0.46 from 0.27 year-over-year[48] - Inventory turnover period increased to 17 days from 14 days year-over-year due to additional inventory purchases[47] - Trade receivables turnover period increased to 40 days from 32 days year-over-year, attributed to increased revenue in the last quarter[47] - Trade payables turnover period increased to 8 days from 4 days year-over-year due to extended payment terms to suppliers[47] Employee Information - The company employed 323 employees in Malaysia as of December 31, 2023, up from 209 employees in 2022[60] - Employee costs and related expenses totaled 25.86 million MYR for the fiscal year 2023, an increase of 26.1% compared to 20.50 million MYR in fiscal year 2022[60] Compliance and Governance - The audit and risk management committee reviewed the consolidated financial information for the fiscal year 2023, confirming consistency with the audited financial statements[71] - The company has adopted a standard code for securities trading by directors and senior management, ensuring compliance throughout the review period[69] - The board of directors includes both executive and independent non-executive members[72] Miscellaneous - No significant events requiring disclosure occurred after the end of the fiscal year 2023[57] - The annual report for the fiscal year 2023 will be printed and sent to shareholders by April 30, 2024, upon request[72] - The announcement is published on the Hong Kong Stock Exchange and the company's website[72]

Financial Performance - The total revenue for the first half of 2023 was 574.8 million MYR, a significant decrease of approximately 33.8% compared to 868.0 million MYR in the same period of 2022[9]. - The net profit for the first half of 2023 was 2.5 million MYR, down about 68.1% from 7.7 million MYR in the first half of 2022[9]. - The sales volume of black scrap metal decreased to 308,891 tons in the first half of 2023 from 384,646 tons in the same period of 2022, representing a decline of approximately 20%[9]. - The average selling price of black scrap metal per ton was approximately 1,740 MYR in the first half of 2023, down about 17% from 2,095 MYR in the same period of 2022[14]. - Gross profit for the first half of 2023 was 29.6 million MYR, a decrease of 16.1% from 35.3 million MYR in the first half of 2022[18]. - Operating profit decreased significantly to MYR 5,843 thousand, a decline of 55.5% from MYR 13,117 thousand in the prior year[71]. - Net profit for the period was MYR 2,452 thousand, representing a 68.1% decrease from MYR 7,690 thousand in the same period last year[71]. - Basic and diluted earnings per share were MYR 0.25, down from MYR 0.78 in the previous year, reflecting a decline of 67.9%[71]. Expenses and Costs - Distribution and selling expenses decreased to 11.3 million MYR in the first half of 2023, down approximately 14.4% from 13.2 million MYR in the first half of 2022[19]. - Administrative expenses increased to 13.4 million MYR in the first half of 2023, up 15.5% from 11.6 million MYR in the same period of 2022[20]. - Employee costs and related expenses for the six months ended June 30, 2023, amounted to 11.0 million MYR, an increase of 18.3% compared to 9.3 million MYR for the same period in 2022[55]. - The cost of goods sold decreased to 537,908 thousand MYR in 2023 from 824,170 thousand MYR in 2022, representing a reduction of approximately 34.8%[100]. Assets and Liabilities - Total assets as of June 30, 2023, were 315.1 million MYR, an increase from 278.5 million MYR as of December 31, 2022[7]. - Total liabilities increased to MYR 108,902 thousand from MYR 74,676 thousand, a rise of 45.7%[76]. - The total borrowings as of June 30, 2023, amounted to 75.4 million MYR, an increase from 52.3 million MYR as of December 31, 2022[28]. - The debt-to-equity ratio increased to 37.6% as of June 30, 2023, from 26.6% as of December 31, 2022[28]. - Total receivables and other receivables increased to 166,987 thousand MYR as of June 30, 2023, compared to 142,727 thousand MYR at the end of 2022, an increase of about 17.0%[110]. Cash Flow - The net cash used in operating activities was MYR (3,525) thousand, an improvement from MYR (7,717) thousand in the same period of 2022[82]. - The total cash flow from operating activities was 9,367 thousand MYR for the six months ended June 30, 2023, compared to 15,862 thousand MYR in the same period of 2022[136]. - The net cash generated from financing activities was MYR 21,014 thousand, up from MYR 14,659 thousand in the prior year, reflecting increased borrowing[82]. - The total cash and cash equivalents at the end of the period increased to MYR 39,448 thousand from MYR 29,116 thousand year-over-year, representing a growth of 35.5%[82]. Shareholder Information - The total issued shares as of June 30, 2023, amount to 1,000,000,000 ordinary shares[43]. - Major shareholders, including the Sia brothers, collectively hold 581,680,000 shares, representing 58.17% of the total shares[41]. - 5S Holdings, a related entity, holds 341,680,000 shares, accounting for 34.17% of the total shares[47]. - The company has not established any arrangements that would allow directors to benefit from purchasing shares or debt securities in the last six months[46]. Risk and Governance - The company has a robust monitoring system for overdue receivables, with historical trends indicating low default risk as long as credit ratings remain stable[39]. - The company has adhered to the corporate governance code, with no deviations reported except for the combined roles of the Chairman and CEO[53]. - There are no significant adverse changes expected in the business, financial, or economic conditions affecting the ability of receivables to meet obligations[39]. Capital Expenditures and Investments - The company has committed 6,389 thousand MYR for the expansion of its Selangor waste facility, with 5,349 thousand MYR already utilized[61]. - The group has committed capital expenditures of 11,757 thousand MYR for the purchase of two adjacent vacant land parcels as of June 30, 2023[138]. - The total cost of property, plant, and equipment acquisitions was 3,525,247 thousand MYR in 2023, compared to 2,656,854 thousand MYR in 2022, an increase of approximately 32.7%[108]. Taxation - The actual tax rate for the first half of 2023 was 42.8%, up from 36.7% in the first half of 2022, primarily due to an increase in non-deductible expenses[22]. - Income tax expense decreased to 1,995 thousand MYR in 2023 from 4,453 thousand MYR in 2022, a decline of approximately 55.2%[102].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Heng Hup Holdings Limited 興合控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1891） 截至二零二三年六月三十日止六個月之未經審核中期業績公告 財務摘要 • 截至二零二三年六月三十日止六個月的收益為574.8百萬馬幣，較截至二零 二二年六月三十日止同期的868.0百萬馬幣減少33.8%。 • 截至二零二三年六月三十日止六個月的毛利為29.6百萬馬幣，較截至二零 二二年六月三十日止同期的35.3百萬馬幣減少16.2%。 • 截至二零二三年六月三十日止六個月的本公司擁有人應佔溢利為2.5百萬馬 幣，較截至二零二二年六月三十日止六個月的7.8百萬馬幣減少68.7%。 • 於二零二三年六月三十日，本公司擁有人應佔權益為207.2百萬馬幣，較二 零二二年十二月三十一日的204.8百萬馬幣增加1.2%。 ...

Financial Performance - The company reported revenue of 1.405 billion MYR for the fiscal year 2022, a slight decrease of approximately 1% from 1.418 billion MYR in 2021[16]. - The sales volume of black scrap metal was 675,062 tons in 2022, down about 3.8% from 701,846 tons in the previous fiscal year[16]. - The gross profit for 2022 was 52.329 million MYR, a decline from 77.574 million MYR in 2021[8]. - The net profit attributable to shareholders was 2.381 million MYR, significantly down 90.6% from 25.485 million MYR in 2021[8]. - Total assets as of December 31, 2022, were 278.456 million MYR, slightly down from 280.020 million MYR in 2021[8]. - Total liabilities increased to 74.676 million MYR in 2022 from 73.248 million MYR in 2021[8]. - The net profit after tax for the fiscal year 2022 was 1.48 million MYR, a significant decrease of approximately 94.18% from 25.41 million MYR in the fiscal year 2021[58]. - The average gross profit margin decreased from 5.5% to 3.7%, primarily due to lower selling prices of black scrap metal in the second half of 2022[66]. - Distribution and selling expenses increased by approximately 18% to 25.76 million MYR from 21.78 million MYR in the previous fiscal year[69]. - Administrative expenses rose to 24.95 million MYR in fiscal year 2022 from 22.93 million MYR in fiscal year 2021, mainly due to the acquisition of additional fleets and leased land[70]. - The actual tax rate for fiscal year 2022 was 65.5%, significantly higher than 28.5% in the previous year, due to an increase in non-deductible expenses[71]. - The liquidity ratio (current ratio) was 3.5 times in fiscal year 2022, slightly down from 3.6 times in fiscal year 2021[75]. - The inventory turnover period was 14 days in fiscal year 2022, a slight decrease from 15 days in the previous year, indicating improved logistics efficiency[78]. - The trade receivables turnover period improved to 32 days in fiscal year 2022 from 35 days in the previous year, reflecting stricter control over credit terms[78]. - As of December 31, 2022, the total equity attributable to shareholders was RM 204.76 million, a slight decrease from RM 206.84 million in 2021[79]. - The group's operating cash was RM 149.0 million, down from RM 174.0 million in the previous year, with cash and bank balances at RM 30.66 million[80]. - Total borrowings increased to RM 52.3 million in 2022 from RM 33.4 million in 2021, primarily used for the procurement of ferrous scrap metal and capital expenditures[80]. - The debt-to-equity ratio rose to 26.6% in 2022 from 16.7% in 2021, attributed to additional term loans and increased short-term bank financing[80]. - The expected credit loss rate for trade receivables was 1.1% in 2022, slightly up from 1.0% in 2021, with provisions amounting to RM 1.2 million[89]. - As of December 31, 2022, the group had capital commitments for the acquisition of property, plant, and equipment amounting to RM 11.76 million, compared to RM 10.06 million in 2021[86]. - The group has significant credit risk concentration, with 84% of trade receivables from customers in the ferrous scrap metal sector as of December 31, 2022[90]. Corporate Governance - Heng Hup International Pte. Ltd. holds a 51% stake in Heng Hup Chiho Recycling (Malaysia) Sdn. Bhd. and a 49% stake in other subsidiaries[23]. - The company has a total of 8 board members, including 5 executive directors and 3 independent non-executive directors[26]. - The board of directors consists of five executive directors and three independent non-executive directors, ensuring compliance with listing rules regarding independent director appointments[100]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience in board member selection[101]. - As of December 31, 2022, the gender ratio among employees, including senior management, is 9:1, with one female member on the board[104]. - The company has fully complied with the corporate governance code, except for the deviation regarding the roles of the chairman and CEO[100]. - The nomination committee regularly reviews the board's composition and diversity to maintain operational effectiveness[108]. - All independent non-executive directors have confirmed their independence and possess relevant professional qualifications[109]. - The company has established appropriate liability insurance for its directors and senior management to cover responsibilities arising from corporate activities[98]. - The board has established three committees: audit and risk committee, remuneration committee, and nomination committee to oversee specific areas of governance[96]. - The company emphasizes merit-based appointments for board members while ensuring diversity benefits are considered[101]. - The board's structure is deemed reasonable, with members possessing diverse experiences and skills to maintain high operational standards[108]. - The board held five meetings during the fiscal year ending December 31, 2022, with all directors attending all meetings[117]. - The company provides necessary onboarding training and continuous professional development for all directors to ensure compliance and awareness of regulations[111]. - The board retains decision-making authority over all significant matters, including policies, strategies, budgets, and major transactions[118]. - The chairman and CEO roles are held by Sia Kok Chin, which deviates from the corporate governance code, but the board believes this arrangement benefits the group's management[112]. - The board is committed to reviewing and considering the separation of the chairman and CEO roles at an appropriate time[112]. - The company encourages independent consultation for directors and provides independent professional advice at the company's expense[110]. - The board's governance policies and practices have been reviewed to ensure compliance with legal and regulatory requirements[119]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report for 2022 highlights the company's commitment to sustainability and outlines measures taken to integrate sustainability across its operations[159]. - The report covers the period from January 1, 2022, to December 31, 2022, focusing on the company's core business of procuring recyclable black metal for sale to steel mills[159]. - The board of directors is responsible for overseeing significant environmental and sustainability risks and opportunities, supported by the audit and risk committee[166]. - Stakeholder engagement is emphasized as a key tool for improving business operations and managing related risks[169]. - The company maintains ongoing communication with stakeholders, including shareholders, customers, and regulatory bodies, to gather feedback and address concerns[174]. - The company has implemented various communication channels to connect with different stakeholder groups, ensuring continuous engagement[174]. - The ESG report is prepared in accordance with the Hong Kong Stock Exchange's guidelines, focusing on the company's response to ESG challenges[159]. - The company aims to optimize sustainability initiatives and ensure continuous disclosure of relevant matters for long-term benefits[160]. - In 2022, the company increased its truck fleet to 76 vehicles, up from 67 in 2021, contributing to a total carbon dioxide equivalent emission of 4,917.66 tons[180]. - The company reported a nitrogen oxide (NOx) emission of 21.78 kg and sulfur oxide (SOx) emission of 5.82 kg in 2022, reflecting its ongoing efforts to monitor and reduce emissions[180]. - Water consumption increased to 27,036 cubic meters in 2022, compared to 18,109 cubic meters in 2021, attributed to the return of all employees to the office[187]. - The company’s electricity consumption reached 1,768,964 kWh in 2022, an increase from 1,244,662 kWh in 2021, driven by operational changes post-COVID-19[191]. - Diesel consumption rose in 2022, correlating with the increase in the number of trucks and sales growth, indicating a direct relationship between operational scale and environmental impact[192]. - The company aims to continue implementing water-saving measures and will monitor water usage to set reasonable consumption targets[190]. - The paper consumption decreased significantly in 2022 to 543 kg from 593 kg in 2021, attributed to the successful migration to an ERP system[184]. - The company is committed to adhering to climate-related financial disclosure standards set to take effect in 2025, indicating a proactive approach to environmental governance[194]. Employee Welfare and Development - The management emphasizes the importance of employee welfare and safety, maintaining health and safety protocols established during the COVID-19 pandemic[196]. - The company has implemented a recycling culture among employees, focusing on reducing paper waste and improving overall waste management practices[183]. - The company is committed to providing necessary training and development programs for employees to maximize their potential[199]. - Average training hours per employee have varied significantly by gender and employee category from 2019 to 2022, with male employees receiving 0 hours in 2020, 2021, and 2022[200]. - Female employees had an average of 15 training hours in 2020, but this dropped to 1 hour in 2021 and 2 hours in 2022[200]. - Senior management team members had an average of 6 training hours in 2019, which decreased to 1 hour by 2022[200]. - Middle management team members had an average of 2 training hours in 2019, with a slight increase to 1 hour in 2022[200].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Heng Hup Holdings Limited 興合控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1891） 截至二零二二年十二月三十一日止財政年度的全年業績公告 於本公告內，「我們」及「興合」指本公司（定義見下文）及倘文義另有指明則指本 集團（定義見下文）。 興合控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其 附屬公司（統稱為「本集團」）截至二零二二年十二月三十一日止財政年度的年度業 績，連同截至二零二一年十二月三十一日止財政年度的比較數字如下： 財務摘要 • 截至二零二二年十二月三十一日止財政年度的收入為1,404.58百萬馬幣（相 當於約2,464.17百萬港元），較二零二一年的1,418.24百萬馬幣（相當於約 2,488.14百萬港元）減少約0.96%。 ...

Financial Performance - The revenue for the six months ended June 30, 2022, was RM 868.0 million, an increase of 12.2% compared to RM 773.7 million for the same period in 2021[11]. - The net profit after tax for the period was RM 7.8 million, a significant decrease of 51.7% from RM 16.2 million in the same period last year[15]. - The gross profit for the six months ended June 30, 2022, decreased by 24.8% to 35.3 million MYR from 46.9 million MYR in the same period of 2021, resulting in a gross margin decline from 6.1% to 4.1%[24]. - Operating profit decreased to 13,117 thousand MYR from 24,288 thousand MYR, indicating a decline of 45.9% year-over-year[87]. - The company reported a total comprehensive income of 7,847 thousand MYR for the six months ended June 30, 2022, compared to 16,241 thousand MYR for the same period in 2021, reflecting a decline of approximately 52%[96]. - The company reported a profit attributable to owners of the company of 7,847 thousand MYR for the six months ended June 30, 2022, compared to 16,241 thousand MYR for the same period in 2021, representing a decrease of approximately 51.7%[131]. Sales and Revenue - The sales volume of ferrous scrap metal was 384,646 tons, a decrease of 7.9% compared to the previous year, primarily due to the lack of export sales in 2022[14]. - The average selling price of scrap metal increased compared to the previous year, contributing to revenue growth despite lower sales volume[14]. - The group's sales revenue from black scrap metal for the six months ended June 30, 2022, was 810.457 million MYR, a 14.2% increase from 709.673 million MYR in the same period of 2021[21]. - Total revenue from transportation services increased significantly to 1,808 thousand MYR in 2022 from 837 thousand MYR in 2021, marking an increase of approximately 116.5%[118]. Assets and Liabilities - Total assets increased to RM 319.2 million from RM 280.0 million year-on-year[11]. - Total liabilities increased to RM 109.2 million from RM 73.2 million year-on-year[11]. - Non-current assets totaled RM 66.6 million as of June 30, 2022, compared to RM 38.2 million as of December 31, 2021[11]. - The current ratio as of June 30, 2022, was 2.7 times, down from 3.6 times as of December 31, 2021[31]. - The debt-to-equity ratio increased to 29% as of June 30, 2022, compared to 16.7% as of December 31, 2021[34]. - The group's total borrowings as of June 30, 2022, amounted to 58.8 million MYR, up from 33.4 million MYR as of December 31, 2021[33]. Cash Flow and Financial Management - The net cash used in operating activities for the six months ended June 30, 2022, was (7,717) thousand MYR, compared to a net cash generated of 13,229 thousand MYR for the same period in 2021, indicating a significant decline[99]. - The financing activities generated a net cash inflow of 14,659 thousand MYR for the six months ended June 30, 2022, compared to a net cash outflow of (367) thousand MYR in the same period of 2021[99]. - Operating cash flow for the six months ended June 30, 2022, was 12,143 thousand MYR, a decrease of 48% from 23,673 thousand MYR in 2021[178]. - The company closely monitors the cash flow forecasts to ensure sufficient liquidity for operational needs[47]. Corporate Governance and Compliance - The company has committed to high standards of corporate governance to protect shareholder interests and enhance corporate value and accountability[67]. - The company has fully complied with the corporate governance code during the review period, except for a deviation regarding the roles of the chairman and CEO[67]. - The company has not disclosed any other interests or short positions held by directors or senior management as of June 30, 2022[59]. Employee and Operational Metrics - The total employee costs and related expenses for the six months ended June 30, 2022, amounted to 9.3 million MYR, a decrease of 8.8% compared to 10.2 million MYR for the same period in 2021[69]. - As of June 30, 2022, the group employed 178 staff in Malaysia, an increase from 162 staff as of June 30, 2021[69]. Future Plans and Investments - The company plans to establish a new waste facility on the east coast of Peninsular Malaysia, with an investment of 4,546 thousand MYR[87]. - The company has allocated 6,389 thousand MYR for the expansion of its Selangor waste facility, expected to be completed by Q2 2023[87].

Financial Performance - The company reported a total revenue of 1,418.2 million MYR for the fiscal year ended December 31, 2021, representing a 63.3% increase from 868.3 million MYR in the previous year[20]. - The net profit attributable to the company owners was 25.5 million MYR, a significant increase of 202.4% compared to 8.4 million MYR in the fiscal year ended December 31, 2020[20]. - The company's gross profit for the fiscal year was 77.6 million MYR, compared to 49.0 million MYR in the previous year[12]. - The net profit after tax reached 25.4 million MYR, representing a significant growth of 202.4% compared to 8.4 million MYR for the fiscal year ending December 31, 2020[70]. - Other income rose from 2.8 million MYR in 2020 to 4.2 million MYR in 2021, primarily due to an increase in transportation income[90]. - The group's total equity attributable to shareholders was 206.8 million MYR as of December 31, 2021, compared to 184.2 million MYR in 2020[96]. Sales and Operations - The sales volume of ferrous scrap metal reached 701,846 tons, up 9.7% from 639,871 tons in the previous fiscal year[20]. - In the fiscal years 2020 and 2021, the company sold approximately 639,871 tons and 701,846 tons of ferrous scrap metal, accounting for 88.2% and 90.9% of total revenue, respectively[30]. - The sales volume of black scrap metal increased by 9.5% compared to the previous year, driven by strong demand and pricing[78]. - The company operates three scrap yards covering approximately 51,000 square meters, strategically located to ensure a steady supply of ferrous scrap metal[30]. - The company has a fleet of 67 trucks, with 52 trucks having a capacity of 20 tons or more, enabling timely logistics support for small and medium suppliers[30]. - During the COVID-19 pandemic in 2021, the company successfully delivered goods to steel mills without significant incidents, demonstrating effective logistics management[199]. Financial Position - Total assets increased to 280.0 million MYR from 228.8 million MYR in the previous year, reflecting a growth of 22.5%[17]. - The company's total liabilities rose to 73.2 million MYR, up from 44.5 million MYR in the previous year[17]. - The current ratio decreased to 3.6 times in 2021 from 5.1 times in 2020, indicating a tighter liquidity position[94]. - The debt-to-equity ratio increased to 16.7% in 2021 from 11.7% in 2020, reflecting higher borrowing levels[97]. - The company has sufficient liquidity and financial resources to meet operational funding needs and support future expansion plans[97]. Strategic Goals - The company aims to achieve sustainable profitability through cost reduction and operational efficiency improvements[19]. - The company plans to continue focusing on the growing demand for steel products in the market[20]. - The company aims to expand its business across the region and diversify its business portfolio, focusing on human resources strategy to enhance sustainability and competitiveness[25]. - The company plans to enhance operational efficiency and expand its supplier and customer base to strengthen its market position in the black scrap metal trade in Malaysia[71]. - The company is committed to reviewing its strategies to further improve operational efficiency and achieve greater success[26]. Governance and Management - The company recognizes the importance of good governance and aims to maintain its market leadership while providing substantial returns to shareholders[25]. - The board consists of five executive directors and three independent non-executive directors, ensuring compliance with listing rules regarding independent director appointments[124]. - The company has established three board committees: Audit and Risk Committee, Remuneration Committee, and Nomination Committee to oversee specific areas of corporate affairs[119]. - The company has adopted the corporate governance code to ensure proper regulation of business activities and decision-making processes, with a commitment to high standards of corporate governance[117]. - The company has implemented a diversity policy for board members, considering various factors such as gender, age, and professional experience in appointments[125]. Risk Management - The company has implemented various internal control and risk management policies, including asset depreciation provision management and inventory management policies[161]. - The Audit and Risk Committee reviews the financial reporting system and compliance procedures, ensuring the adequacy of resources and training for accounting and financial reporting functions[147]. - The company has established a policy for handling and disclosing inside information to prevent any individual from having an advantage in securities trading[163]. - The company faces minimal foreign exchange risk as most transactions, assets, and liabilities are denominated in Malaysian Ringgit[108]. Environmental, Social, and Governance (ESG) - The company emphasizes its role in the recycling industry, contributing to environmental protection and resource conservation[183]. - The ESG report outlines sustainability measures and highlights the impact of ESG initiatives on the company[183]. - Key ESG issues identified include energy efficiency, environmental compliance, employment, occupational health and safety, and corporate governance[198]. - The company is committed to continuous improvement in its ESG activities and compliance with regulations[189]. - The governance structure includes a board of directors, an audit and risk committee, and a working group to oversee sustainability efforts[187].