Financial Performance - Revenue for the six months ended June 30, 2021, was RM 773.7 million, a significant increase of approximately 133.0% compared to RM 332.1 million for the same period in 2020[11] - Gross profit for the same period was RM 46.9 million, up from RM 19.7 million in 2020, reflecting a strong recovery in profitability[11] - Net profit after tax for the six months was RM 16.2 million, compared to RM 1.6 million in the previous year, marking an increase of 912.5%[11] - The group's revenue for the six months ended June 30, 2021, was 773.7 million MYR, a 133.0% increase compared to 332.1 million MYR for the same period in 2020[19] - Gross profit for the six months ended June 30, 2021, rose by 138.1% to 46.9 million MYR from 19.7 million MYR in the same period of 2020[26] - The company reported a total comprehensive income of 93,410 thousand MYR for the six months ended June 30, 2021, compared to 16,241 thousand MYR for the same period in the previous year, indicating a substantial increase[111] - The company reported a profit before tax of 23,673 thousand MYR for the six months ended June 30, 2021, compared to 2,776 thousand MYR for the same period in 2020, marking an increase of approximately 752.5%[144] - The company reported a net profit of 16.215 million MYR for the six months ended June 30, 2021, compared to 1.552 million MYR in the previous year, reflecting a substantial growth in earnings[101] Assets and Equity - The total assets as of June 30, 2021, amounted to RM 258.8 million, an increase from RM 228.8 million as of December 31, 2020[11] - The company reported a total equity attributable to owners of RM 197.6 million, up from RM 184.2 million in the previous year[11] - The total equity attributable to the owners of the company increased to 197.6 million MYR as of June 30, 2021, from 184.2 million MYR at the end of 2020[34] - As of June 30, 2021, total equity increased to 197,597 thousand MYR from 184,249 thousand MYR at the beginning of the year, reflecting a growth of approximately 7.3%[110] Sales and Market Position - Black metal sales volume reached 417,584 tons, representing a 61.6% increase compared to the same period in 2020[14] - The sales volume of black scrap metal increased by 61.6% compared to the same period in 2020, contributing significantly to revenue growth[19] - The company anticipates facing challenges from the COVID-19 pandemic in the second half of 2021, but expects strong demand for steel products to continue[14] - The company plans to expand its supplier and customer base to enhance its market position in the black metal trading industry in Malaysia[14] - The management believes that once the movement control order is lifted, the company will quickly recover from the setbacks experienced during the pandemic[14] - The company is committed to leveraging its core competitive advantages to strengthen its market leadership in the black metal sector[14] Financial Ratios and Liquidity - The company's liquidity ratio as of June 30, 2021, was 4.1 times, down from 5.1 times as of December 31, 2020[31] - The gross profit margin slightly increased to 6.1% from 5.9% in the previous year[26] - The accounts receivable turnover period decreased significantly to 28 days from 54.1 days, reflecting improved credit control policies[33] - The inventory turnover period improved to 12.0 days from 15.0 days in the previous year, indicating better logistics management[33] Borrowings and Liabilities - The total borrowings as of June 30, 2021, were 21.5 million MYR, up from 20.0 million MYR at the end of 2020, primarily used for procurement and capital expenditures[34] - The company's debt-to-equity ratio was 11.6% as of June 30, 2021, slightly down from 11.7% at the end of 2020[35] - The group’s total liabilities increased by 7.9% from 19,962 thousand MYR to 21,535 thousand MYR, indicating a trend of increasing leverage[173] Employee and Operational Costs - As of June 30, 2021, the group employed 162 staff, an increase from 129 staff as of June 30, 2020, representing a growth of 25.6%[79] - Total employee costs and related expenses for the six months ended June 30, 2021, amounted to 10.2 million MYR, a 72.9% increase compared to 5.9 million MYR for the same period in 2020[79] Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2021, was 13,229 thousand MYR, a significant improvement compared to a net cash used of 20,721 thousand MYR in the same period of 2020[114] - Operating cash flow for the six months ended June 30, 2021, was 26,677 thousand MYR, a significant increase from 7,282 thousand MYR in the same period of 2020[200] - The company’s investment activities resulted in a net cash outflow of 2,060 thousand MYR for the six months ended June 30, 2021, compared to 5,065 thousand MYR in the same period of 2020[114] Corporate Governance and Compliance - The company has adopted high standards of corporate governance to protect shareholder interests and enhance corporate value[73] - The company has complied with all relevant laws and regulations during the reporting period, with no significant legal disputes reported[96] - The board of directors confirmed adherence to the standard code for securities trading throughout the review period[74] Share Capital and Ownership - The total number of issued ordinary shares as of June 30, 2021, was 1,000,000,000 shares[52] - Each of the Sia brothers holds a collective interest of 750,000,000 shares, representing 75% ownership[52] - 5S Holdings, in which the Sia brothers collectively hold 510,000,000 shares, accounts for 51% of the total shares[58] - Major shareholders, excluding directors, have disclosed interests in shares, with Koo Lee Ching and others holding 750,000,000 shares each, representing 75%[58] Challenges and Future Outlook - The group faces minimal foreign exchange risk as most transactions, assets, and liabilities are denominated in Malaysian Ringgit[43] - The company has plans to establish a new waste facility on the east coast of Peninsular Malaysia, with an investment of 4.546 million MYR[100] - The company has allocated 6.389 million MYR for the expansion of the Selangor waste facility, expected to be completed by Q4 2022[100]

（於開曼群島註冊成立的有限公司） 股份代號 : 1891 2020 年度報告 目 錄 公司資料 2 董事會報告 46 財務摘要 4 綜合財務報表的獨立核數師報告 64 主席報告 6 綜合全面收益表 69 公司簡介 8 綜合財務狀況表 70 董事及高級管理層 10 綜合權益變動表 72 管理層討論與分析 15 綜合現金流量表 73 企業管治報告 22 綜合財務報表附註 74 環境、社會及管治報告 34 興合控股有限公司 年度報告 2020 香港主要營業地點 | --- | --- | |---------------------|--------------| | | | | Sai Shiow Yin | 女士（主席） | | Puar Chin Jong 先生 | | | | | | Chu Kheh Wee 先生 | | 2 公司資料 | --- | --- | |--------------------------------------------|-----------------------| | | | | 董事會 | 註冊辦事處 | | | | | | Hutchins Drive | | 執 ...

Financial Performance - Revenue for the six months ended June 30, 2020, was 332.1 million MYR, a decrease of 33.4% compared to 499.0 million MYR for the same period in 2019[12]. - Net profit for the period was 1.6 million MYR, down 80.2% from 7.8 million MYR in the same period last year[12]. - The group's gross profit decreased from 29.1 million MYR in the first half of 2019 to 19.7 million MYR in the first half of 2020, with a slight increase in gross profit margin from 5.8% to 5.9%[27]. - The company reported a net profit attributable to owners of 1.6 million MYR for the six months ended June 30, 2020, compared to 7.8 million MYR in 2019, reflecting a decrease of approximately 79.7%[101]. - Gross profit for the same period was 19.7 million MYR, down from 29.1 million MYR in 2019, indicating a decline of about 32.5%[101]. Sales and Volume - The sales volume of black scrap metal was 258,478 tons, a decline of 22.4% from 333,270 tons in the previous year[15]. - Sales volume of ferrous scrap metal decreased by 22.4% compared to the same period in 2019, with an average selling price down by 11.6%[20]. Assets and Liabilities - Total assets as of June 30, 2020, amounted to 205.7 million MYR, compared to 200.8 million MYR as of December 31, 2019[12]. - Total liabilities increased to 28.3 million MYR from 24.9 million MYR year-on-year[12]. - The company's total equity increased to 177.4 million MYR as of June 30, 2020, compared to 175.9 million MYR at the end of 2019[104]. - Current liabilities rose significantly to 22,805 thousand MYR from 18,447 thousand MYR, marking a 23.5% increase[107]. Cash Flow and Financing - The group's cash and bank balances decreased to 25.2 million MYR as of June 30, 2020, from 45.3 million MYR as of December 31, 2019[37]. - Cash flow from operating activities showed a net outflow of 20,721 thousand MYR for the six months ended June 30, 2020, compared to an outflow of 17,879 thousand MYR in the same period of 2019, indicating a 10.3% increase in cash used[117]. - The company reported a net cash outflow from investing activities of 5,065 thousand MYR for the six months ended June 30, 2020, compared to 2,811 thousand MYR in the previous year, representing an 80.4% increase[117]. - Financing activities generated a net cash inflow of 4,954 thousand MYR in the first half of 2020, a significant decrease from 52,294 thousand MYR in the same period of 2019[117]. Corporate Governance - The company has committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[74]. - The board of directors has adopted a standard code for securities trading by directors and senior management, ensuring compliance during the review period[75]. - The company has maintained public float in accordance with the listing rules as of the date of this interim report[84]. Shareholder Information - The total issued shares as of June 30, 2020, was 1,000,000,000 ordinary shares, with major shareholders holding 75% each[53]. - 5S Holdings holds a beneficial interest of 51% in the company, representing 510,000,000 ordinary shares[59]. - Koo Lee Ching, as a spouse, holds a beneficial interest of 75% in 750,000,000 shares[59]. - The company has implemented a share option scheme effective for ten years starting from February 19, 2019[63]. Market Outlook - The outlook for steel consumption is expected to gradually improve in the second half of 2020, although the extent of recovery remains uncertain[15]. - The company plans to strengthen its strategy in the export market to mitigate the impact of weak domestic demand[15]. Employee Information - The total employee cost and related expenses for the group amounted to 5.9 million MYR for the six months ended June 30, 2020, an increase of 11.3% compared to 5.3 million MYR for the same period in 2019[80]. - As of June 30, 2020, the group employed 129 employees, up from 112 employees as of June 30, 2019[80].

Financial Performance - The company's revenue for the year ended December 31, 2019, was RM 990.6 million, an increase of 10.8% compared to RM 894.4 million in 2018[22]. - The net profit for 2019 was RM 6.7 million, a significant decrease from RM 24.6 million in 2018, reflecting tighter margins in the black scrap metal trade[23]. - The gross profit for 2019 was RM 50.4 million, down from RM 58.4 million in 2018, highlighting the impact of market conditions on profitability[20]. - The group's revenue for the year ended December 31, 2019, increased by 10.8% compared to the previous year, while gross profit decreased from MYR 58.4 million to MYR 50.4 million[78]. - The gross profit margin declined to 5.1% for the year ended December 31, 2019, down from 6.5% in the previous year[78]. Sales and Market Position - The sales volume of black scrap metal reached 692,899 tons in 2019, up 19.3% from 580,911 tons in 2018[22]. - The company sold approximately 580,911 tons and 692,899 tons of black scrap metal in the fiscal years 2018 and 2019, accounting for 87.8% and 87.5% of total revenue respectively[27]. - Local sales of black scrap metal accounted for 96.7% of total sales volume, with 669,766 tons sold domestically[75]. - Export sales of black scrap metal were 23,133 tons, representing 3.3% of total sales volume[75]. - The company has established a nationwide supplier base for recyclable black scrap metal in Malaysia, enhancing its market position[22]. Assets and Liabilities - The total assets of the company as of December 31, 2019, amounted to RM 200.8 million, compared to RM 155.5 million in 2018[20]. - The total liabilities decreased to RM 24.9 million in 2019 from RM 38.1 million in 2018, indicating improved financial stability[20]. - Non-current assets totaled RM 28.5 million, while current assets amounted to RM 172.3 million as of December 31, 2019[20]. - The total equity attributable to owners as of December 31, 2019, was MYR 175.9 million, up from MYR 117.4 million in 2018[84]. Operational Challenges - The company faced challenges due to global oversupply and trade tensions, impacting the steel market and procurement prices[23]. - The average selling price of black scrap metal decreased by 7.4% due to global oversupply and ongoing tensions in US-China trade relations[74]. - The management is currently unable to reliably estimate the impact of COVID-19 on the financial performance for the year ending December 31, 2020, due to the ongoing nature of the pandemic[24]. Corporate Governance - The board consists of five executive directors and three independent non-executive directors, complying with listing rules regarding independent director appointments[109]. - The board has established a diversity policy, considering factors such as gender, age, cultural background, and professional experience in its composition[110]. - The company has arranged appropriate liability insurance for its directors and senior management, with annual reviews of coverage[106]. - The board will consider separating the roles of chairman and CEO at an appropriate time to enhance governance[123]. Future Plans and Strategies - The company plans to act prudently in the face of global and regional economic downturn risks during the highly volatile year[24]. - The company aims to achieve new milestones in the black scrap metal trading industry[24]. - The company plans to consolidate its market leadership in Malaysia's black scrap metal trade and expand its supplier and customer base in 2020[70]. - The company anticipates significant growth in revenue and profitability by leveraging its core competitive advantages in the upcoming year[70]. Shareholder Engagement - The company encourages shareholder participation in annual general meetings and ensures that all resolutions are passed[159]. - The annual general meeting provides shareholders with direct communication opportunities with the board, including the external auditor[160]. - The company aims to enhance communication with shareholders through its website, providing timely updates on business operations and financial information[169]. Donations and Community Engagement - The company made cash and in-kind donations of approximately 93,890 MYR to various charitable organizations in Malaysia, focusing on children, youth, and elderly initiatives[185].

Financial Performance - Revenue for the six months ended June 30, 2019, was RM 498.973 million, an increase of 20.7% compared to RM 413.496 million for the same period in 2018[10]. - Net profit for the same period was RM 7.830 million, a decrease of 29.3% from RM 11.089 million in 2018[10]. - Adjusted net profit, excluding listing expenses, was RM 11.494 million, down 17.9% from RM 13.998 million in the previous year[10]. - The company's revenue for the six months ended June 30, 2019, was 499.0 million MYR, an increase of 20.7% compared to 413.5 million MYR for the same period in 2018[25]. - The sales revenue from black scrap metal for the six months ended June 30, 2019, was 441.3 million MYR, compared to 353.4 million MYR for the same period in 2018[28]. - The group's revenue increased by 20.7%, but gross profit decreased from 29.2 million MYR in the same period last year to 29.1 million MYR[32]. - The gross profit margin declined to 5.8% for the six months ended June 30, 2019, compared to 7.1% for the same period in 2018[32]. - Shareholders' profit attributable to the company was 7.8 million MYR for the six months ended June 30, 2019, down from 11.1 million MYR in the same period last year[36]. - Basic and diluted earnings per share for the period were both 0.87 sen, compared to 1.48 sen in the previous year, indicating a decline of 41.2%[103]. - The pre-tax profit for the six months ended June 30, 2019, was 11,468 thousand MYR, compared to 16,053 thousand MYR in the same period of 2018, indicating a decline of approximately 28.9%[198]. Sales and Production - Black metal sales volume increased by 25.4% to 333,270 tons compared to 265,864 tons in the same period of 2018[13]. - The sales volume of black scrap metal increased by 25.4% during the review period, primarily due to a diversified customer base strategy and increased demand in Malaysia[27]. Assets and Equity - Total assets as of June 30, 2019, amounted to RM 218.024 million, up from RM 155.487 million as of December 31, 2018[10]. - Total equity attributable to shareholders was 179.9 million MYR as of June 30, 2019, up from 117.4 million MYR on December 31, 2018[41]. - The total borrowings amounted to 12.9 million MYR as of June 30, 2019, compared to 10.7 million MYR on December 31, 2018[41]. - The debt-to-equity ratio was 0.07 times as of June 30, 2019, down from 0.09 times on December 31, 2018[43]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2019, was negative at (17,879) thousand MYR, compared to a positive cash flow of 7,740 thousand MYR in 2018[118]. - Net cash used in investing activities was (2,811) thousand MYR, a decrease from (3,714) thousand MYR in the previous year[118]. - Financing activities generated a net cash inflow of 52,294 thousand MYR, a significant increase from a net cash outflow of (5,857) thousand MYR in 2018[118]. - The company reported a net increase in cash and cash equivalents of 31,604 thousand MYR, compared to a decrease of (1,831) thousand MYR in the same period last year[118]. - The company raised 65,081 thousand MYR from share issuance, which was not present in the previous year[118]. Shareholder Information - Major shareholders, including 5S Holdings, hold 51% of the shares, while the Sia brothers collectively hold 75% each[62]. - The company has adopted a share option scheme effective from February 19, 2019, with a maximum number of shares to be issued under the scheme capped at 100,000,000 shares, representing approximately 10% of the issued share capital as of June 30, 2019[68]. - No share options have been granted, exercised, cancelled, or lapsed under the share option scheme as of June 30, 2019[71]. - The company did not declare any dividends for the six months ended June 30, 2019, but announced a special dividend of 0.005 HKD per share on September 23, 2019[93]. Corporate Governance and Compliance - The board confirmed compliance with the corporate governance code, except for the deviation regarding the roles of the chairman and CEO[74]. - The company has complied with relevant laws and regulations during the reporting period and is not involved in any significant legal proceedings[97]. Future Plans and Strategies - The company plans to utilize the raised funds primarily for operational expansion and enhancing logistics support[13]. - The company aims to expand its supplier and customer base in the black scrap metal trade, leveraging favorable macroeconomic conditions in the Malaysian steel industry[17]. - The company plans to allocate approximately 35.5 million HKD or 45.1% of the net proceeds from the share sale for additional working capital to purchase black scrap metal[21]. - The company intends to invest about 12.3 million HKD or 15.6% of the net proceeds to build a new recycling facility and office in Selangor[21]. Employee Information - The group employed 112 employees in Malaysia as of June 30, 2019, an increase from 109 employees as of June 30, 2018[81]. - Employee costs and related expenses totaled 5.3 million MYR for the six months ended June 30, 2019, a decrease of 4.8% compared to 5.6 million MYR for the same period in 2018[81]. Accounting and Financial Reporting - The financial statements are presented in Malaysian Ringgit (MYR) and comply with International Financial Reporting Standards (IFRS) and applicable disclosure requirements[152]. - The company adopted several new accounting standards effective from January 1, 2019, including IFRS 9 (Financial Instruments) and IFRS 16 (Leases), which impact the recognition and measurement of leases[156]. - The company has not restated comparative information for 2018 under the new standards, continuing to report under IAS 17 for that period[157].

Financial Performance - The total revenue for the fiscal year 2018 was 894.4 million MYR, representing a 21% increase compared to the previous year[12]. - The attributable profit for the same period was 24.6 million MYR, reflecting a growth of 6.5% year-on-year[12]. - The gross profit for 2018 was 58.4 million MYR, compared to 53.8 million MYR in 2017[10]. - The company reported a pre-tax profit of 32.3 million MYR for the fiscal year 2018, up from 31.0 million MYR in 2017[10]. - The company's revenue for the year ended December 31, 2018, was MYR 894.4 million, an increase of 21.0% compared to MYR 739.4 million in 2017[57]. - Net profit for the same period was MYR 24.6 million, up from MYR 23.1 million in 2017, reflecting a positive performance[57]. - The gross profit for the year ended December 31, 2018, increased to MYR 58.4 million from MYR 53.8 million in 2017, with a gross profit margin of 6.5%[71]. - Profit attributable to owners for the year ended December 31, 2018, was 24.6 million MYR, an increase from 22.8 million MYR in 2017[80]. Sales and Market Dynamics - The sales volume of ferrous metals reached 580,911 tons, an increase from 519,069 tons in 2017[10]. - The company sold approximately 580,911 tons of ferrous scrap metal in the fiscal year 2018, accounting for 87.8% of total revenue[16]. - Black metal scrap sales volume reached 580,911 tons in 2018, representing an increase of 11.9% from 519,069 tons in 2017[57]. - The local supply of black metal scrap is expected to grow at a compound annual growth rate (CAGR) of 9.7% from 2018 to 2022, driven by increasing production needs of local steel mills[57]. - The company anticipates continued strong demand for ferrous scrap metal due to the recovery of the local steel industry following protective measures implemented by the Malaysian government[17]. - The company aims to increase its market share in the Malaysian ferrous scrap metal market, which is currently experiencing high demand[16]. Assets and Liabilities - Total assets as of December 31, 2018, were 155.5 million MYR, while total liabilities were 38.1 million MYR[10]. - The company’s equity attributable to owners increased to 117.4 million MYR from 70.0 million MYR in the previous year[10]. - The total borrowings as of December 31, 2018, were 10.7 million MYR, down from 12.5 million MYR in 2017, primarily used for procurement and capital expenditures[84]. - The current ratio improved significantly to 4.0 times in 2018 from 1.7 times in 2017, indicating better liquidity[82]. Operational Developments - The company has established a national supplier base for scrap metal in Malaysia, enhancing its ability to procure recyclable ferrous scrap metal[16]. - The company operates three scrap yards with a total area of about 35,000 square meters, strategically located near steel mills in Melaka, Selangor, and Johor[16]. - The company has a fleet of 33 trucks, with 18 trucks having a capacity of 20 tons or more, enabling timely logistics support for suppliers[16]. - The company plans to expand its waste processing facilities and replace its truck fleet to enhance operational efficiency[57]. - The company intends to invest MYR 12.6 million (15.6%) in constructing a new recycling yard and office near the existing Selangor recycling yard[1]. Governance and Management - The board of directors consists of experienced individuals, ensuring effective governance and oversight[118]. - The company has established three board committees: the audit committee, nomination committee, and remuneration committee to strengthen governance practices[131]. - The audit committee, composed of independent non-executive directors, has the responsibility to review the company's financial status and internal controls[134]. - The company provides independent professional advice to directors when fulfilling their responsibilities[130]. - The company has implemented various internal control and risk management policies to safeguard shareholder investments and assets[150]. Shareholder Relations and Communication - The company emphasizes effective communication with shareholders to enhance investor relations and ensure timely disclosure of information[160]. - The company will hold its annual general meeting on June 15, 2019, providing shareholders an opportunity to communicate directly with the board[159]. - The company has established a website to provide the public with updated information on its business operations and financial data[160]. Future Outlook and Strategic Initiatives - The company believes that the favorable macroeconomic environment in the Malaysian steel industry will provide business development opportunities[13]. - The company is positioned to benefit from the shift of scrap recyclers from China to Southeast Asia and South Asia due to recent import restrictions imposed by the Chinese government[57]. - The company aims to leverage its financial resources, logistics support, and supplier network to capitalize on the anticipated growth in the Malaysian scrap metal industry[57].