Financial Performance - Revenue for the year ended December 31, 2021, increased by approximately 10.3% to RM 120.8 million from RM 109.5 million in 2020[8] - Gross profit rose by 6.8% to RM 32.4 million, with a gross margin of 26.8%, down from 27.7% in the previous year[8] - Profit attributable to owners of the company surged to RM 9.3 million, compared to RM 0.4 million in 2020, excluding listing expenses[8] - Revenue from printable apparel increased by 11.0% to RM 104.4 million, driven by improved consumer sentiment following the easing of COVID-19 restrictions in Malaysia[16] - Revenue from gift products rose by 6.5% to RM 16.4 million, attributed to a 16.8% increase in average selling price per item[17] Expenses and Costs - Sales and distribution expenses decreased by approximately 5% to RM 5.7 million, primarily due to effective salary control and reduced marketing expenses[18] - Administrative and other operating expenses increased by 12.1% to RM 15.7 million, mainly due to additional legal and professional fees related to compliance post-listing[19] - Income tax expenses increased by approximately MYR 0.6 million or 16.2% to about MYR 4.3 million due to an increase in profit before tax[22] - The total employee cost for the year ended December 31, 2021, was approximately MYR 18.5 million, slightly down from MYR 18.9 million in 2020[31] Cash and Assets - As of December 31, 2021, cash and cash equivalents were approximately MYR 81.1 million, up from MYR 66.1 million in 2020, primarily due to increased net cash inflow from operating activities[23] - As of December 31, 2021, the current assets and current liabilities were approximately MYR 130.1 million and MYR 6.5 million, respectively, with a net current asset value of about MYR 123.6 million[25] - The debt-to-equity ratio decreased to approximately 5.3% as of December 31, 2021, from 6.3% in 2020, mainly due to repayment of interest-bearing loans and an increase in equity base[30] Strategic Initiatives - The company has established warehousing facilities in Malaysia to meet customer demand, including two owned warehouses in Johor Bahru[10] - The group plans to enhance and increase warehousing capacity, including acquiring land in Johor for a new warehouse, to expand market share amid COVID-19 uncertainties[24] - The company plans to enhance and improve existing warehouse capacity with an investment of $22.3 million, expected to be completed by December 2024[41] - Strengthening sales and marketing efforts is projected to require $14.4 million, also targeted for completion by December 2024[41] - Establishing two new distribution centers is estimated to cost $4.8 million, with a completion date set for December 2024[41] - Investment in information systems is planned at $8.6 million, expected to be finalized by December 2024[41] - Development of an e-commerce sales platform is budgeted at $6.1 million, with a completion timeline of December 2024[41] Governance and Compliance - The board has confirmed compliance with corporate governance standards, ensuring transparency and accountability in operations[63] - The company has established a whistleblowing policy to encourage employees to report any misconduct, with the audit committee responsible for overseeing this policy[145] - The company has implemented a code of conduct applicable to employees and directors, ensuring compliance with legal and regulatory requirements[91] - The board consists of six members, including three executive directors and three independent non-executive directors[74] - The company provides professional training to directors to ensure they are updated on listing rules and governance policies[110] Risk Management - The group has established a risk management policy and formal risk assessment system, identifying and evaluating risks annually[137] - The effectiveness of the risk management and internal control systems was reviewed, and the board found them to be adequate and effective[141] - The group has engaged independent internal control consultants to review its internal control systems annually, ensuring compliance and effectiveness[138] - The board is responsible for monitoring compliance with applicable laws and regulations, ensuring the effectiveness of regulatory compliance procedures[135] Shareholder Relations - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and ensure timely and non-selective disclosure of information[147] - The board is committed to engaging with shareholders through the annual general meeting to address their concerns[117] - The company has a process for shareholders to request special general meetings if they hold at least 10% of the paid-up capital[119] Future Outlook - The economic outlook for 2022 remains uncertain and challenging, but the company aims to enhance operational efficiency to maintain business sustainability[12] - The company anticipates challenges in the current fiscal year 2022 due to the ongoing impact of COVID-19[41] - The company will continuously assess and explore new business opportunities to achieve sustainable growth and long-term shareholder value[42]

Financial Performance - Revenue for the six months ended June 30, 2021, increased by approximately 22.5% to MYR 51,673,000 compared to MYR 42,174,000 for the same period in 2020[28] - Gross profit for the same period rose by approximately 9.5% to MYR 12,450,000, with a gross margin of 24.1%, down from 27.0% in the previous year[28] - The company reported a profit attributable to owners of the company of MYR 2,723,000, a significant recovery from a loss of MYR 4,155,000 in the prior year[28] - Sales of printable apparel increased by approximately 23.8% to MYR 44,800,000, driven by a volume increase from approximately 3,200,000 units to 4,100,000 units[34] - Revenue from gift products grew by approximately 16.9% to MYR 6,900,000, with sales volume rising from approximately 1,900,000 units to 2,000,000 units[35] - Other income surged by approximately 109.1% to MYR 2,300,000, primarily due to increases in interest income and inventory write-back[36] - The company recorded a profit attributable to owners of approximately 2,700,000 MYR, compared to a loss of approximately 4,200,000 MYR in the same period last year, resulting in a net profit margin of about 5.2% compared to a net loss margin of about 10.0% in the previous year[42] - For the six months ended June 30, 2021, the company reported a pre-tax profit of 4,381,000 MYR, compared to a loss of 3,871,000 MYR in the same period of 2020, indicating a significant turnaround in performance[129] Expenses and Costs - Sales and distribution expenses remained stable at approximately MYR 2,900,000 for both the current and prior periods[37] - Administrative and other operating expenses decreased by approximately 300,000 MYR or 3.8% to about 7,500,000 MYR compared to approximately 7,800,000 MYR in the same period last year, mainly due to a reduction in employee costs from a decrease in headcount[38] - Financing costs decreased by approximately 15,000 MYR or 37.5% to about 25,000 MYR from approximately 40,000 MYR in the same period last year, primarily due to a reduction in interest-bearing borrowings and actual interest rates[40] - Income tax expenses increased by approximately 1,200,000 MYR or 240.0% to about 1,700,000 MYR from approximately 500,000 MYR in the same period last year, mainly due to an increase in profit before tax[41] Assets and Liabilities - As of June 30, 2021, the group's current assets net value was approximately 118,200,000 MYR, with cash and cash equivalents of about 67,100,000 MYR[51] - The group’s gearing ratio was approximately 5.3% as of June 30, 2021, down from 6.3% as of December 31, 2020, due to repayment of borrowings and an increase in equity base[52] - Current assets totaled RM 125,477 thousand, slightly down from RM 126,240 thousand as of December 31, 2020[79] - Total liabilities decreased to RM 13,968 thousand from RM 14,666 thousand, showing improved financial stability[79] - The company's equity increased to RM 147,836 thousand from RM 146,223 thousand, reflecting a solid capital position[79] Cash Flow and Financing - Operating cash flow before changes in working capital was RM 3,113,000, compared to a negative cash flow of RM 1,622,000 in the prior year, indicating a turnaround in operational efficiency[85] - The net cash generated from operating activities was RM 2,025,000, a recovery from a net cash outflow of RM 7,805,000 in the previous year[85] - The company experienced a net increase in cash and cash equivalents of RM 1,057,000, contrasting with a decrease of RM 8,735,000 in the same period of 2020[88] - The company has a total available bank financing of approximately 24,800,000 MYR, of which about 7,300,000 MYR has been utilized[51] Corporate Governance - The company has adopted the standards of the Hong Kong Stock Exchange for securities trading, confirming compliance as of June 30, 2021[60] - The board believes that good corporate governance is crucial for the group's sustainable development, and compliance with the corporate governance code has been maintained[61] - The audit committee, consisting of three independent non-executive directors, has reviewed the group's unaudited consolidated performance for the period[64] Shareholder Information - As of June 30, 2021, the directors and the CEO collectively hold 471,000,000 shares, representing 75.0% of the company's equity[65] - MBV Capital Limited, which holds 471,000,000 shares (75.0%), is controlled by the directors, each owning approximately 33.3% of its issued share capital[66] - The board does not recommend the payment of an interim dividend for the period[72] Future Outlook - The company anticipates continued adverse effects on performance due to ongoing COVID-19 measures in Malaysia and Singapore[31] - The economic outlook for the second half of 2021 remains uncertain, prompting the company to focus on operational efficiency[31] Significant Events - There have been no significant events after June 30, 2021, up to the date of this report[73] - The company plans to extend the timeline for the use of unutilized proceeds from its IPO to the end of the 2023 fiscal year to enhance future development flexibility[48]

Financial Performance - The company's revenue for the year ended December 31, 2020, was approximately RM 109.5 million, a decrease of about 38.6% from RM 178.2 million in 2019[17] - Gross profit for the same period was RM 30.3 million, down 44.0% from RM 54.1 million in the previous year, resulting in a gross margin of 27.7% compared to 30.4%[17] - The company's profit attributable to owners for the year was RM 386, significantly lower than RM 18.9 million in 2019, with basic earnings per share dropping to 0.07 sen from 4.02 sen[17] - Revenue from printable apparel decreased by approximately RM 62.5 million or 39.9% to RM 94.1 million, attributed to a 43.2% drop in sales volume due to the pandemic[27] - Revenue from gift products fell by RM 6.2 million or 28.7% to RM 15.4 million, with a sales volume decrease of approximately 29.0%[28] - The total employee costs for the year ended December 31, 2020, were approximately 18.9 million MYR, down from about 21.4 million MYR in 2019[40] - As of December 31, 2020, cash and cash equivalents increased to approximately 66,100,000 MYR from about 36,500,000 MYR in 2019[34] Impact of COVID-19 - The decline in revenue was primarily due to the impact of COVID-19, which led to business suspensions in Malaysia and Singapore from March 18 to May 3, 2020, and from April 7 to June 1, 2020[23] - The group experienced significant operational disruptions due to the COVID-19 pandemic, including business closures and negative impacts on demand for printed apparel and gift products[52] - The company anticipates challenges in the current fiscal year 2021 due to the ongoing pandemic, affecting its business objectives[52] Cost Management - Sales and distribution expenses decreased by about 26.8% to approximately RM 6.0 million, down from RM 8.2 million in 2019, mainly due to reduced sales turnover[29] - Administrative and other operating expenses decreased by approximately 100,000 MYR or 1.0% to about 14,000,000 MYR from last year's approximately 14,100,000 MYR[30] - Financing costs reduced by approximately 200,000 MYR or 66.7% to about 100,000 MYR due to a decrease in interest-bearing borrowings and actual interest rates[32] - Income tax expenses decreased by approximately 4,100,000 MYR or 52.6% to about 3,700,000 MYR, primarily due to a reduction in profit before tax[33] Strategic Developments - The company successfully listed on the Hong Kong Stock Exchange on July 8, 2020, marking a significant milestone for future development[21] - The group plans to enhance and improve storage capacity to expand market share and improve logistics processes following the completion of its initial public offering[35] - The group has committed to purchasing a plot of land in Johor Bahru, Malaysia, for approximately 23,600,000 MYR, with a 20% deposit already paid[47] - The net proceeds from the global offering amounted to approximately 60,300,000 HKD, with planned allocations for enhancing storage capacity, marketing efforts, and establishing new distribution centers[48] Governance and Compliance - The board of directors has confirmed compliance with corporate governance standards, ensuring transparency and accountability in operations[71] - The company established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to enhance governance[85] - The Audit Committee consists of three independent non-executive directors and is responsible for reviewing financial information and ensuring compliance with accounting standards[87] - The company has established a code of conduct applicable to employees and directors to uphold ethical standards[89] - The company’s governance policies and practices are regularly reviewed to ensure compliance with legal and regulatory requirements[89] Risk Management - The company has established a credit risk management system, only extending credit to customers with good credit records after careful assessment of their financial status[141] - The company monitors and maintains sufficient levels of cash and cash equivalents to manage liquidity risk and reduce cash flow volatility[143] - The company is exposed to foreign currency risk due to foreign currency transactions and borrowings, and it actively manages and monitors this risk[145] - The company faces interest rate risk primarily related to floating interest bank balances and borrowings, with management monitoring this risk and considering hedging when necessary[147] Shareholder Relations - The company has established multiple communication channels with shareholders and the public to provide updates on developments and financial performance[131] - The board will consider various factors, including actual and expected financial performance, when deciding on dividend declarations[118] - The company did not declare any interim dividends for the year[137] - The board does not recommend the payment of a final dividend for the year to shareholders[138] Future Outlook - The company is expanding its market presence in Southeast Asia, targeting a market share increase of EE% by the end of the next fiscal year[68] - Recent acquisitions are expected to enhance operational efficiency, with projected cost savings of $FF million annually[68] - The company is investing $GG million in R&D to develop new technologies aimed at improving product offerings and customer satisfaction[68] - A strategic partnership has been established with a leading firm to enhance distribution channels, expected to increase sales by HH%[68] Stock Options and Director Interests - The stock option plan is valid for ten years from the listing date, after which no additional options will be granted[167] - The total number of shares that may be issued upon full exercise of options under the stock option plan is capped at 10% of the issued shares as of the listing date, equating to 62.8 million shares[159] - Directors hold a total of 471,000,000 shares, representing 75% of the company's equity[180] - The company has not granted, exercised, canceled, or allowed any stock options to lapse under the stock option plan as of December 31, 2020[161]

| --- | --- | --- | |-------|-------|-------| | | | | | | | | | | | | | | | | MBV International Limited 2020 INTERIM REPORT INTERIM REPORT 2020 中期報告 MBV International Limited (於開曼群島註冊成立的有限公司) (Incorporated in the Cayman Islands with limited liability) 股份代號 : 1957 Stock Code : 1957 目錄 | --- | --- | |------------------------------|-------| | | | | 公司資料 | 2 | | 財務摘要 | 4 | | 管理層討論與分析 | 5 | | 其他資料 | 8 | | 簡明綜合損益及其他全面收益表 | 14 | | 簡明綜合財務狀況表 | 15 | | 簡明綜合權益變動表 | 16 | | 簡明綜合現金流量表 | 17 | | 簡明綜合財務報表附註 | 19 | 公司資料 執行董事 ...