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].

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].