股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: JBB Builders International Limited 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01903 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.01 | HKD | | 20,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.01 | HKD | | ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: JBB Builders International Limited 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01903 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.01 | HKD | | 20,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.01 | HKD | | ...

Group 1 - The core viewpoint of the article indicates that JBB BUILDERS is facing a projected loss for the fiscal year ending June 30, 2025, amounting to no more than 9.9 million ringgit, while it expects a profit of approximately 3 million ringgit for the fiscal year ending June 30, 2024 [1] - JBB BUILDERS' shareholders have deposited shares into China Zhongheng Financial Group, with a market value of 138 million HKD, representing 20% of the company [1] - The board attributes the anticipated loss primarily to a significant increase in expected credit loss provisions related to trade receivables and contract assets, as well as a substantial rise in general and administrative expenses [1]

Group 1 - JBB BUILDERS has deposited shares worth HKD 138 million into China Zhongheng Financial Group, representing 20% of its market value [1] - The company anticipates a loss attributable to shareholders of no more than MYR 9.9 million for the fiscal year ending June 30, 2025, while expecting a profit of approximately MYR 3 million for the fiscal year ending June 30, 2024 [1] - The board attributes the expected loss primarily to a significant increase in provisions for expected credit losses on trade receivables and contract assets, as well as a substantial rise in general and administrative expenses [1]

Core Viewpoint - JBB BUILDERS (01903) confirms no significant changes in business operations or financial status, and no undisclosed information that could affect the market [1][2] Group 1: Company Ownership and Control - Non-executive director Ngui Leng Swee holds 100% equity in JBB Berlian Investment Limited, representing 161 million shares or 32.25% of the total issued share capital [1] - Datuk Wong Siew Biao and Ngui are considered concert parties, collectively controlling approximately 71.10% of the company's total issued share capital [1] Group 2: Share Placement Agreement - JBB Berlian Investment Limited has entered into a placement agreement with a placement agent to facilitate the subscription of up to 100 million existing shares, which represents about 20% of the total issued shares as of the announcement date [2] - The placement is still pending completion as of the announcement date [2]

Contracts and Projects - The group completed 3 offshore construction contracts with a total original contract value of approximately MYR 53.4 million and 1 building and infrastructure contract valued at approximately MYR 18.3 million for the six months ended December 31, 2024[10]. - As of December 31, 2024, the group has 3 ongoing offshore construction contracts with a total original contract value of approximately MYR 1,312.1 million and 2 ongoing building and infrastructure contracts valued at approximately MYR 146.7 million[10]. - The group submitted 3 tenders and 2 quotations with an expected total contract value of approximately MYR 176.9 million as of June 30, 2024, with additional tenders and quotations submitted for building and infrastructure contracts totaling approximately MYR 234.2 million[11]. - The group is focused on executing existing contracts, including a reclamation project in Johor and a new courthouse building in Malaysia, with a total contract value of approximately 0.6 million MYR[63]. Financial Performance - Revenue increased by approximately 97.5 million MYR or 77.2% to about 223.8 million MYR for the six months ended December 31, 2024, compared to approximately 126.3 million MYR for the same period in 2023[19]. - Revenue from offshore construction services accounted for approximately 90.8% of total revenue, increasing by about 87.2 million MYR or 75.1% to approximately 203.3 million MYR[20]. - Revenue from land reclamation and related works increased by approximately 63.2 million MYR or 3,950.0% to approximately 64.8 million MYR, primarily due to new contracts awarded in 2024[20]. - Revenue from offshore transportation increased by approximately 24.0 million MYR or 21.0% to approximately 138.5 million MYR, driven by increased sand transportation volume from new contracts in Singapore[21]. - The group reported a profit attributable to the owners of approximately 1.6 million Ringgit for the six months ended December 31, 2024, compared to a loss of approximately 3.0 million Ringgit for the same period in 2023, indicating a significant turnaround in performance[34]. - The company reported a net profit for the period of RM 1,541,000, compared to a net loss of RM 3,240,000 in the same period last year, marking a significant recovery[91]. Expenses and Costs - Gross profit increased by approximately 5.5 million MYR or 220.0% to approximately 8.0 million MYR, with gross margin rising from about 2.0% to approximately 3.6%[25]. - General and administrative expenses increased by approximately 1.6 million MYR or 23.9% to about 8.3 million MYR, mainly due to increased employee costs[31]. - Financial costs decreased from approximately 0.5 million MYR to about 0.4 million MYR, primarily due to reduced bank loan balances[32]. - Total employee costs increased to RM 4,995,000 for the six months ended December 31, 2024, from RM 4,218,000 in the same period of 2023, reflecting a rise of 18.4%[130]. - Interest expenses on bank loans decreased to RM 343,000 in the six months ended December 31, 2024, down from RM 470,000 in the same period of 2023, a reduction of 27.0%[129]. Assets and Liabilities - As of December 31, 2024, the group had cash and cash equivalents of approximately 83.1 million Ringgit, down from 94.1 million Ringgit as of June 30, 2024, primarily due to cash outflows from operating, financing, and investing activities[37]. - The total amount of bank loans and lease liabilities decreased from approximately 11.2 million Ringgit as of June 30, 2024, to approximately 9.1 million Ringgit as of December 31, 2024, contributing to a decline in the debt-to-equity ratio from about 8.2% to 6.8%[38]. - Trade and other receivables increased to RM 115,888,000 from RM 92,419,000, reflecting improved collection and sales performance[93]. - The total non-current assets as of December 31, 2024, were MYR 47,748,000, slightly up from MYR 47,528,000 as of June 30, 2024[124]. Shareholder and Governance - The group did not recommend the payment of an interim dividend for the six months ended December 31, 2024, consistent with the previous period[36]. - The company has adopted and complied with all applicable corporate governance code provisions during the reporting period[73]. - Major shareholders include JBB Jade Investment Limited and JBB Berlian Investment Limited, holding approximately 36.36% and 32.25% of the issued share capital, respectively[85]. - The company established an audit committee to oversee financial reporting and internal controls, enhancing corporate governance practices[88]. Investments and Financing - The group entered into a sale agreement to sell a 50% stake in a non-wholly owned subsidiary for MYR 1.0 million, with the net assets of the subsidiary prior to the sale being approximately MYR 0.9 million[13]. - The group sold a 35% stake in a joint venture for MYR 150,000, with the net assets of the joint venture prior to the sale being approximately MYR 397,000[15]. - The net proceeds from the global offering of ordinary shares amount to approximately HKD 125.2 million (about MYR 62.6 million), after deducting underwriting fees and related listing expenses[69]. - The allocation of net proceeds includes 57.9% (MYR 36.2 million) for purchasing a modified sand transport vessel and 7.3% (MYR 4.6 million) for acquiring new land-based machinery[69]. Market Conditions and Challenges - The group faces challenges in the construction industry, including labor shortages, inflationary pressures, and rising interest rates impacting profitability[66]. - The group maintains a strong liquidity position, monitoring uncertainties while exploring new opportunities and optimizing its business model[67]. Trade Receivables and Payables - Approximately 40% of the total trade receivables and contract assets as of December 31, 2024, were derived from the group's largest customer, down from 61% as of June 30, 2024, indicating a reduction in credit concentration risk[48]. - Trade receivables increased to MYR 109,228,000 as of December 31, 2024, compared to MYR 88,571,000 as of June 30, 2024, reflecting a growth of approximately 23.4%[145]. - The aging analysis of trade receivables shows MYR 35,254,000 overdue by more than 90 days as of December 31, 2024, compared to MYR 2,163,000 as of June 30, 2024[147]. - As of December 31, 2024, trade payables increased to 135,903 thousand Ringgit from 118,979 thousand Ringgit as of June 30, 2024, representing a growth of approximately 14.2%[150]. Future Outlook - The expected timeline for utilizing the remaining proceeds is by June 30, 2028, depending on market and economic conditions[72]. - The company plans to upgrade IT and project management systems with an allocation of 0.6% (MYR 0.4 million) of the net proceeds[69].

Financial Performance - Revenue for the six months ended December 31, 2024, was RM 223,827 thousand, an increase of 97,522 thousand or 77.2% compared to RM 126,305 thousand in the same period of 2023[2] - Gross profit for the same period was RM 8,045 thousand, up RM 5,527 thousand or 219.5% from RM 2,518 thousand in 2023, resulting in a gross margin of 3.6%[2] - The profit attributable to owners of the company was RM 1,571 thousand, a turnaround from a loss of RM 3,017 thousand in the previous year, representing an increase of RM 4,588 thousand[2] - Basic and diluted earnings per share improved to 0.31 sen from a loss of 0.60 sen in the prior year[2] - The company reported operating profit of RM 2,750 thousand, a significant improvement from an operating loss of RM 1,936 thousand in the previous period[5] - The group reported total revenue of 223,827 thousand ringgit for the six months ended December 31, 2024, a significant increase from 126,305 thousand ringgit in the same period of 2023, representing a growth of approximately 77%[15] - The group reported a total segment profit of 9,983 thousand ringgit for the six months ended December 31, 2024, compared to a profit of 2,002 thousand ringgit in the same period of 2023, marking an increase of approximately 398%[23] - The group reported a pre-tax profit of 2,380 thousand ringgit for the current period, a turnaround from a pre-tax loss of 2,486 thousand ringgit in the previous period[23] - The company reported a profit attributable to owners of approximately 1.6 million Ringgit for the six months ended December 31, 2024, compared to a loss of approximately 3.0 million Ringgit for the same period in 2023[86] Revenue Breakdown - Revenue from reclamation and related works reached 64,832 thousand ringgit, up from 1,606 thousand ringgit, indicating a substantial increase of over 4,000%[23] - The offshore transportation segment generated revenue of 138,474 thousand ringgit, compared to 114,491 thousand ringgit, reflecting an increase of about 21%[23] - Revenue from offshore construction services accounted for approximately 90.8% of total revenue, increasing from approximately 116.1 million MYR to approximately 203.3 million MYR, a 75.1% increase[73] - Revenue from land reclamation and related works increased from approximately 1.6 million MYR to approximately 64.8 million MYR, a significant increase of 3,950.0%[73] - The group’s geographical revenue analysis shows that revenue from Malaysia increased to 85,353 thousand ringgit from 9,502 thousand ringgit, a growth of over 800%[27] - The group’s revenue from Singapore was 138,474 thousand ringgit, up from 116,803 thousand ringgit, representing an increase of about 18%[27] Expenses and Liabilities - Current liabilities rose to RM 149,778 thousand from RM 133,654 thousand, an increase of 12.1%[6] - The group incurred unallocated central administrative expenses of 8,031 thousand ringgit, which is an increase from 5,274 thousand ringgit in the previous period[23] - Employee costs increased to 4,836,000 MYR for the six months ended December 31, 2024, up 29% from 3,758,000 MYR in the same period of 2023[31] - The total income tax expense for the six months ended December 31, 2024, was 839,000 MYR, representing an increase of 11% from 754,000 MYR in the same period of 2023[32] - General and administrative expenses increased by approximately 1.6 million Ringgit or 23.9% to about 8.3 million Ringgit for the six months ended December 31, 2024, primarily due to increased employee costs[83] Assets and Receivables - Trade and other receivables increased to RM 115,888 thousand from RM 92,419 thousand, reflecting a growth of 25.5%[6] - Total assets as of December 31, 2024, were RM 241,249 thousand, compared to RM 229,254 thousand as of June 30, 2024, indicating an increase of 5.2%[6] - Trade receivables as of December 31, 2024, amounted to 109,228,000 MYR, an increase from 88,571,000 MYR as of June 30, 2024[44] - The aging analysis of trade receivables shows that 35,254,000 MYR is overdue by more than 90 days as of December 31, 2024[46] - The group has recognized a provision for bad debts of 8,266,000 MYR as of December 31, 2024, compared to 7,396,000 MYR as of June 30, 2024[44] Investments and Acquisitions - The company acquired property, plant, and equipment for approximately 559,000 MYR in cash during the six months ended December 31, 2024, significantly higher than 122,000 MYR in the same period of 2023[36] - The company entered into a sale agreement to sell a 50% stake in Gabungan Jasapadu Sdn. Bhd. for a total consideration of 1,000 thousand ringgit[59] - The net assets of Gabungan at the time of sale amounted to 428 thousand ringgit, with a sale gain of 572 thousand ringgit recognized in the current year's profit[60] - The company has committed capital expenditures of approximately 12,911 thousand ringgit for the acquisition of investment properties as of December 31, 2024[58] - The group entered into a sale agreement to sell its 50% stake in Gabungan Jasapadu Sdn. Bhd. for 1.0 million MYR, with the net assets of Gabungan prior to the sale being approximately 0.9 million MYR[66] Market Outlook and Strategy - The company continues to focus on expanding its offshore construction services and infrastructure services, with plans for further market penetration in Malaysia and Singapore[7] - The group is optimistic about the construction industry in Malaysia and Singapore, despite facing challenges such as labor shortages and inflationary pressures[113] - The group is actively participating in various tenders to strengthen market competitiveness and is focused on delivering high-quality projects awarded in 2024[114] - The group has received invitations for new projects, including offshore transport expansions in Singapore and government-related projects in Malaysia[113] - The Johor-Singapore Economic Zone agreement was signed in early January 2025, expected to enhance trade and attract new investments, creating job opportunities and supporting talent development[113] Corporate Governance - The Audit Committee was established on April 11, 2019, consisting of three independent non-executive directors, with Tai Lam Shin as the chairman[122] - The interim report for the six months ending December 31, 2024, will be published on the Hong Kong Stock Exchange and the company's website at an appropriate time[123] - The Board expresses gratitude to shareholders, business partners, and customers for their continued support and contributions[124]

Financial Performance - Revenue increased from approximately MYR 217.8 million for the year ended June 30, 2023, to approximately MYR 329.3 million for the year ended June 30, 2024[6]. - Gross margin decreased from approximately 5.6% for the year ended June 30, 2023, to approximately 2.5% for the year ended June 30, 2024[6]. - The company recorded a profit attributable to owners of approximately MYR 3.0 million for the year ended June 30, 2024, compared to a loss of approximately MYR 8.2 million for the year ended June 30, 2023[6]. - Revenue increased by approximately 111.5 million Ringgit or 51.2% from about 217.8 million Ringgit for the year ended June 30, 2023, to about 329.3 million Ringgit for the year ended June 30, 2024[10]. - Revenue from marine construction services accounted for approximately 93.8% of total revenue, increasing by about 125.2 million Ringgit or 68.2% from approximately 183.6 million Ringgit to about 308.8 million Ringgit[11]. - Revenue from land and infrastructure services increased by about 1.5 million Ringgit or 9.0% from approximately 16.7 million Ringgit to about 18.2 million Ringgit[12]. - Revenue from the marine fuel trading business decreased by about 15.2 million Ringgit or 86.9% from approximately 17.5 million Ringgit to about 2.3 million Ringgit[14]. - Gross profit decreased by about 4.0 million Ringgit or 32.5% from approximately 12.3 million Ringgit to about 8.3 million Ringgit, with overall gross margin dropping from approximately 5.6% to about 2.5%[15]. - Other income increased from approximately 3.3 million Ringgit to about 5.8 million Ringgit, mainly due to additional income from subcontractors and suppliers related to marine transport activities[16]. Contracts and Tenders - The company is actively monitoring new project invitations and has secured new contracts during the fiscal year[7]. - The company has 6 ongoing marine construction contracts with a total original contract value of approximately 1,365.5 million Ringgit as of June 30, 2024[9]. - The company submitted 5 tenders and 2 quotations with an expected total contract value of approximately 1,789.8 million Ringgit as of June 30, 2023[9]. - The company has secured 3 contracts with an original contract value of approximately 564.0 million Ringgit for the year ended June 30, 2024[9]. - The company anticipates submitting additional tenders and quotations with an expected total contract value of approximately 177.2 million Ringgit, with results still pending as of June 30, 2024[9]. - The company has secured new contracts totaling approximately 564.0 million Malaysian Ringgit, including a modern courthouse complex and land reclamation projects in Johor, Malaysia[42]. Corporate Governance - Commitment to high standards of corporate governance in line with the Hong Kong Stock Exchange's guidelines[7]. - The company has maintained a commitment to corporate governance, with independent directors overseeing audit and remuneration committees[50]. - The company has complied with all applicable corporate governance codes as of the report date[70]. - The company confirmed adherence to the standard code for securities transactions by directors during the reporting period[71]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced composition for effective decision-making[132]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, with a majority of independent non-executive directors in each committee[145]. Financial Position - As of June 30, 2024, the company had cash and cash equivalents of approximately 94.1 million MYR, an increase from 77.5 million MYR as of June 30, 2023[23]. - The current ratio decreased from approximately 2.1 times as of June 30, 2023, to about 1.7 times as of June 30, 2024, due to increased subcontracting costs and reduced gross margins[23]. - The debt-to-equity ratio improved from approximately 10.9% as of June 30, 2023, to about 8.2% as of June 30, 2024, due to a reduction in total bank loans and lease liabilities[23]. - Trade receivables and contract assets impairment reversal amounted to approximately 5.7 million MYR for the year ended June 30, 2024, compared to an impairment loss of about 5.8 million MYR for the year ended June 30, 2023[18]. - General and administrative expenses increased by approximately 1.3 million MYR or 8.7% to about 16.2 million MYR for the year ended June 30, 2024, primarily due to increased employee costs[19]. - Financial costs decreased from approximately 1.4 million MYR for the year ended June 30, 2023, to about 1.0 million MYR for the year ended June 30, 2024, mainly due to a reduction in bank loan balances[20]. Employee and Management - The total number of full-time employees increased from 55 on June 30, 2023, to 64 on June 30, 2024, to expand business activities[40]. - The company emphasizes the importance of employee welfare and has policies in place to ensure a safe and healthy working environment[65]. - The executive team has a combined experience of over 97 years in the construction and project management sectors, enhancing operational efficiency and strategic decision-making[48]. - The company regularly evaluates employee performance to ensure accountability and reward excellence[124]. - The company aims to maintain at least 35% female employees by the fiscal year ending June 30, 2025, and 40% by June 30, 2028[158]. Environmental, Social, and Governance (ESG) - The company recognizes the importance of sustainable development and integrates it into its business decision-making processes[8]. - The group is committed to environmental compliance and has established an environmental management system to mitigate pollution and promote sustainability[63]. - The company aims to integrate ESG considerations into its decision-making processes through a top-down approach[185]. - The company has identified several significant environmental, social, and governance (ESG) risks, including board structure risk and corporate monitoring risk, which could impact governance performance[189]. - The company is committed to enhancing its ESG performance and transparency as part of its long-term sustainability strategy[183]. Shareholder Communication and Dividends - The company did not recommend any final dividend for the year ended June 30, 2024, consistent with the previous year[23]. - The board will continue to review the dividend policy and retains the right to update or modify it at any time[67]. - The company has adopted a shareholder communication policy to ensure timely distribution of financial performance and strategic goals to shareholders[176]. - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting to address specified matters[171]. Risk Management - The board is responsible for maintaining effective risk management and internal control systems, with annual audits conducted[161]. - The audit committee is responsible for reviewing the effectiveness of the risk management and internal control systems at least annually, covering all significant controls[163]. - The company has implemented a whistleblowing policy allowing stakeholders to report concerns confidentially and anonymously, with no misconduct cases reported for the year ended June 30, 2024[163]. - The company is actively exploring climate transition risk mitigation measures, including the feasibility of an internal carbon pricing system to address the impact of transition risks on operations[190].

Revenue Performance - Revenue for the year ended June 30, 2024, was MYR 329,330 thousand, an increase of MYR 111,554 thousand compared to MYR 217,776 thousand in 2023, representing a growth of approximately 51.1%[1] - Revenue from construction contracts for the year 2024 is MYR 45,136,000, up from MYR 26,710,000 in 2023, representing a growth of 68.6%[13] - Revenue from offshore transportation for 2024 is MYR 281,882,000, compared to MYR 173,611,000 in 2023, indicating a growth of 62.5%[13] - The total revenue from the group for the year ending June 30, 2024, is MYR 329,330,000, an increase from MYR 217,776,000 in 2023, reflecting a growth of 51.1%[13] - Revenue from external customers in Singapore rose to 284,194 thousand Ringgit in 2024, up from 184,488 thousand Ringgit in 2023, representing a growth of 54%[22] Profitability - The company reported a profit attributable to owners of MYR 2,994 thousand, a significant recovery from a loss of MYR 8,226 thousand in the previous year, an improvement of MYR 11,220 thousand[1] - Basic and diluted earnings per share improved to 0.60 sen from a loss of 1.65 sen, marking a turnaround of 2.25 sen[1] - The group reported a total segment profit of MYR 14,691,000 for the year ending June 30, 2024, compared to a loss in the infrastructure segment of MYR 980,000[18] - The company reported a pre-tax loss of 6,922 thousand Ringgit, which includes financial costs and losses from joint ventures[20] - The company reported a profit attributable to owners of approximately 3.0 million MYR for the year ending June 30, 2024, compared to a loss of about 8.2 million MYR for the previous year[67] Expenses and Costs - Gross profit decreased to MYR 8,332 thousand from MYR 12,285 thousand, resulting in a gross margin of 2.5%, down from 5.6%, a decline of 3.1 percentage points[1] - The company incurred a total employee cost of 10,527 thousand Ringgit in 2024, compared to 9,171 thousand Ringgit in 2023, reflecting an increase of 14.8%[26] - The group’s administrative and corporate expenses not allocated amounted to MYR 12,882,000 for the reporting period[17] - The group’s financial costs for the period were MYR 963,000, with a share of losses from an associate amounting to MYR 21,000[17] - General and administrative expenses increased by approximately 1.3 million MYR or 8.7% to about 16.2 million MYR for the year ending June 30, 2024[64] Assets and Liabilities - Trade and other receivables increased significantly to MYR 92,419 thousand from MYR 50,742 thousand, reflecting a growth of 82.5%[4] - Current liabilities rose to MYR 133,654 thousand from MYR 74,989 thousand, indicating an increase of 78.1%[4] - Total equity attributable to owners of the company increased to MYR 129,149 thousand from MYR 125,526 thousand, a rise of MYR 3,623 thousand[4] - The company recorded a net cash position of MYR 8,109 thousand in cash and cash equivalents, down from MYR 9,769 thousand[4] - The company’s total assets decreased slightly to MYR 143,154 thousand from MYR 143,878 thousand, a decline of 0.5%[4] Future Outlook and Strategy - The company plans to continue expanding its offshore construction services and infrastructure services, focusing on enhancing operational efficiency and exploring new market opportunities[5] - The group anticipates future expected revenue to be recognized from construction contracts and offshore transportation contracts between June 30, 2025, and June 30, 2028[12] - The group is focused on executing new construction contracts obtained in 2024 to ensure timely delivery of high-quality projects[87] - The group plans to optimize its business model and actively participate in various tenders to strengthen market competitiveness[87] - The group aims to utilize its financial position and management's extensive network to implement suitable business strategies to mitigate potential adverse impacts on operations[87] Compliance and Governance - The group has adopted the standard code of conduct for securities trading by directors as per the listing rules, confirming compliance for the fiscal year ending June 30, 2024[92] - An audit committee was established on April 11, 2019, consisting of three independent non-executive directors, to review financial reports and accounting policies[94] - The independent auditor Crowe Malaysia PLT confirmed that the preliminary performance announcement figures align with the audited consolidated financial statements for the fiscal year ending June 30, 2024[95] - The annual report for the fiscal year ending June 30, 2024, will be published on the stock exchange and the company's website, containing all required information[96] Market Conditions - The construction industry remains competitive, facing inflationary pressures and labor shortages, while the group continues to receive invitations for new projects, including government-related initiatives in Malaysia[86] - The group has maintained a close monitoring of foreign exchange risks and will consider hedging significant foreign exchange risks as needed[79] - The group faces interest rate risk primarily from bank cash and loans, with cash flow interest rate risk concentrated on fluctuations in the Malaysian base lending rate[78]

Revenue Performance - Revenue increased by approximately 7.4 million Ringgit or 6.2% to about 126.3 million Ringgit for the six months ended December 31, 2023, compared to approximately 118.9 million Ringgit for the same period in 2022[1]. - Revenue from offshore construction services accounted for approximately 91.9% of total revenue, increasing by about 18.8 million Ringgit or 19.3% to approximately 116.1 million Ringgit[2]. - Revenue from offshore transportation increased by approximately 24.9 million Ringgit or 27.8% to about 114.5 million Ringgit, primarily due to a significant increase in sand transportation volume from Singapore[3]. - Revenue from building and infrastructure services decreased by approximately 3.0 million Ringgit or 27.5% to about 7.9 million Ringgit, mainly due to reduced workload after the completion of several contracts[4]. Profitability and Loss - Gross profit decreased by approximately 6.5 million Ringgit or 72.2% to about 2.5 million Ringgit, with gross margin dropping from approximately 7.6% to about 2.0%[8]. - The company reported a loss attributable to owners of approximately 3.0 million Ringgit for the six months ended December 31, 2023, compared to a profit of approximately 3.5 million Ringgit for the same period in 2022[16]. - The group incurred a pre-tax loss of 2.486 million MYR for the six months ended December 31, 2023[127]. - The net loss for the period was MYR 3,240 thousand, a significant decrease from a profit of MYR 3,622 thousand in the same period last year[182]. - The total comprehensive loss for the period was MYR 3,752 thousand, compared to a total comprehensive income of MYR 4,701 thousand in the previous year[182]. Financial Position - As of December 31, 2023, the company had cash and cash equivalents of approximately 75.0 million MYR, a decrease from 77.5 million MYR as of June 30, 2023[20]. - The company's bank loans amounted to approximately 12.4 million MYR as of December 31, 2023, down from 14.2 million MYR as of June 30, 2023, with an interest rate of 7.2%[21]. - The current ratio decreased from approximately 2.1 times as of June 30, 2023, to approximately 1.8 times as of December 31, 2023, primarily due to increased subcontracting costs and reduced gross profit margin[21]. - The debt-to-equity ratio improved from approximately 10.9% as of June 30, 2023, to approximately 10.0% as of December 31, 2023, due to a reduction in total bank loans and lease liabilities[21]. - The group’s total liabilities, including trade and other payables, are expected to be settled within one year, except for retention sums of approximately 1,002 thousand Ringgit, which are expected to be settled after one year[151]. Cash Flow and Financing - The net cash used in operating activities for the six months ended December 31, 2023, was MYR (6,851) thousand, compared to MYR (3,608) thousand in the same period last year[186]. - The cash and cash equivalents at the end of the period were MYR 74,958 thousand, a decrease from MYR 84,482 thousand at the end of the previous year[186]. - The board assessed that the funding and capital requirements for two recently awarded contracts over the next twelve months would be approximately 22.5 million Ringgit, indicating a need for new bank financing to meet these requirements[68]. - The company anticipates that new bank financing may be required to meet funding and capital needs for new contracts, subject to bank approval and collateral requirements[67]. Contracts and Business Development - The company secured a contract for land reclamation and mixed development projects in Mukim, with a total contract value exceeding 300 million MYR[32]. - The group has secured new contracts since July 2023, including a modern 5-story courthouse and related infrastructure contracts in Johor, with a total contract value of approximately 512.4 million Malaysian Ringgit[52]. - The company has secured building and infrastructure contracts worth approximately 145.9 million MYR and reclamation-related contracts worth about 366.5 million MYR, with work expected to commence in March 2024[64]. - The company has submitted four tenders and one engineering proposal, with a total expected contract value of approximately 1,130.4 million MYR, but results are still pending[64]. Corporate Governance and Shareholding - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange's listing rules during the reporting period[71]. - As of December 31, 2023, the board members and senior executives held significant stakes in the company, with the largest shareholder controlling approximately 71.10% of the issued share capital[78]. - The largest shareholder, Datuk Wong Shih Biao, holds 181,816,500 shares, representing about 36.36% of the total issued share capital[78]. - The board of directors includes both executive and non-executive members, ensuring a diverse governance structure[90]. Employee and Operational Insights - The group has a total of 59 full-time employees as of December 31, 2023, an increase from 55 employees as of June 30, 2023[50]. - The group maintains a conservative outlook on its recent business and financial performance due to competitive pressures, inflation, labor shortages, and rising interest rates impacting capital costs[52]. - The group continues to monitor uncertainties and market developments while optimizing its business model and actively participating in various tenders to strengthen market competitiveness[54]. Risk Management - The group continues to monitor credit risk associated with trade and other receivables, implementing credit policies to mitigate potential losses[29]. - The group believes that the credit risk of other receivables and deposits has not significantly increased since initial recognition[39]. - The group does not currently have a foreign exchange hedging policy but closely monitors foreign exchange risks and maintains them at acceptable levels[43].