[Company Information](index=2&type=section&id=Company%20Information) This section provides detailed information on the company's board, committees, secretary, registered office, principal place of business, share registrar, auditor, and principal bankers - The report provides detailed information on the company's board of directors, committee members, company secretary, registered office, principal place of business, share registrar, auditor, and principal bankers[2](index=2&type=chunk)[3](index=3&type=chunk) [Interim Results and Condensed Consolidated Financial Statements](index=4&type=section&id=Interim%20Results%20and%20Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's interim financial performance, including statements of profit or loss, financial position, changes in equity, and cash flows, highlighting key financial metrics and trends [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended December 31, 2020, the Group's revenue significantly decreased by 52.7% to RM 51.51 million from RM 108.84 million in the prior year, with profit for the period sharply declining by 85.8% to RM 2.07 million primarily due to reduced revenue and gross profit, leading to a drop in basic earnings per share from RM 0.0166 to RM 0.0021 Profit or Loss Key Data (For the six months ended December 31) | Indicator | 2020 (Unaudited) | 2019 (Unaudited) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 51,511 Thousand Ringgit (RM) | 108,837 Thousand Ringgit (RM) | -52.7% | | Gross Profit | 9,526 Thousand Ringgit (RM) | 26,874 Thousand Ringgit (RM) | -64.6% | | Profit Before Tax | 4,123 Thousand Ringgit (RM) | 20,089 Thousand Ringgit (RM) | -79.5% | | Profit for the Period | 2,074 Thousand Ringgit (RM) | 14,650 Thousand Ringgit (RM) | -85.8% | | Basic Earnings Per Share | 0.21 Cents (RM) | 1.66 Cents (RM) | -87.3% | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2020, the Group's total assets were RM 171 million, total liabilities RM 31 million, and total equity RM 140 million, showing a relatively stable asset-liability structure compared to June 30, 2020, with a significant increase in cash and cash equivalents to RM 88.98 million and a decrease in contract assets Balance Sheet Key Items (As of December 31, 2020) | Indicator | As of December 31, 2020 (Unaudited) | As of June 30, 2020 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 22,207 Thousand Ringgit (RM) | 23,501 Thousand Ringgit (RM) | | Current Assets | 149,030 Thousand Ringgit (RM) | 159,690 Thousand Ringgit (RM) | | *Of which: Cash and Cash Equivalents* | 88,977 Thousand Ringgit (RM) | 47,315 Thousand Ringgit (RM) | | *Of which: Contract Assets* | 34,629 Thousand Ringgit (RM) | 49,656 Thousand Ringgit (RM) | | **Liabilities** | | | | Current Liabilities | 26,461 Thousand Ringgit (RM) | 37,936 Thousand Ringgit (RM) | | Non-current Liabilities | 4,415 Thousand Ringgit (RM) | 5,660 Thousand Ringgit (RM) | | **Equity** | | | | Total Equity | 140,361 Thousand Ringgit (RM) | 139,595 Thousand Ringgit (RM) | [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended December 31, 2020, the Group's total equity slightly increased from RM 139.595 million at the beginning of the period to RM 140.361 million at the end, primarily due to profit for the period of RM 2.074 million, partially offset by exchange differences on translation of foreign operations of RM 1.308 million loss - Total equity increased by **766 Thousand Ringgit (RM)** during the period, primarily contributed by profit for the period, but affected by exchange losses[24](index=24&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) During the period, net cash from operating activities was RM 8.298 million, a 44.8% year-on-year decrease, while net cash inflow from investing activities was RM 36.772 million, mainly from disposal of financial assets and changes in pledged deposits, with net cash outflow from financing activities of RM 2.219 million, resulting in a significant increase in cash and cash equivalents to RM 88.977 million at period-end Cash Flow Statement Summary (For the six months ended December 31) | Item | 2020 (Unaudited) | 2019 (Unaudited) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 8,298 Thousand Ringgit (RM) | 15,043 Thousand Ringgit (RM) | | Net Cash from/(used in) Investing Activities | 36,772 Thousand Ringgit (RM) | (6,890) Thousand Ringgit (RM) | | Net Cash (used in)/from Financing Activities | (2,219) Thousand Ringgit (RM) | 56,993 Thousand Ringgit (RM) | | Net Increase in Cash and Cash Equivalents | 42,851 Thousand Ringgit (RM) | 65,146 Thousand Ringgit (RM) | | Cash and Cash Equivalents at End of Period | 88,977 Thousand Ringgit (RM) | 77,758 Thousand Ringgit (RM) | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides explanatory notes to the condensed consolidated financial statements, detailing accounting policies, segment information, revenue recognition, earnings per share, dividends, and post-reporting period events [Note 1: General Information and Reorganization](index=11&type=section&id=Note%201.%20General%20Information%20and%20Reorganization) The Company is an investment holding company incorporated in the Cayman Islands, with its subsidiaries primarily engaged in civil and structural engineering in Malaysia, and its shares were listed on the Main Board of the Hong Kong Stock Exchange on September 30, 2019 - The Group is principally engaged in the provision of civil and structural engineering services[41](index=41&type=chunk) [Note 4: Segment Reporting](index=15&type=section&id=Note%204.%20Segment%20Reporting) The Group's operations are divided into three reportable segments: site preparation works, civil engineering works, and building construction works, with civil engineering projects being the primary revenue source during the period, contributing RM 31.117 million (60.4% of total revenue), and building construction projects contributing RM 20.394 million (39.6%), with all business and revenue derived from Malaysia Segment Revenue and Gross Profit (For the six months ended December 31, 2020) | Segment | Revenue (Thousand Ringgit (RM)) | Gross Profit (Thousand Ringgit (RM)) | | :--- | :--- | :--- | | Site Preparation Works Projects | - | - | | Civil Engineering Projects | 31,117 | 6,379 | | Building Construction Projects | 20,394 | 3,147 | | **Total** | **51,511** | **9,526** | - All the Group's revenue from external customers and non-current assets are located in Malaysia[77](index=77&type=chunk) [Note 5: Revenue](index=19&type=section&id=Note%205.%20Revenue) All of the Group's revenue is derived from providing civil and structural engineering services to customers and is recognized over time, with the total transaction price allocated to unsatisfied performance obligations amounting to RM 59.182 million as of December 31, 2020, expected to be recognized as revenue in future years - As of December 31, 2020, the total value of the Group's uncompleted contracts (transaction price allocated to remaining performance obligations) was **59,182 Thousand Ringgit (RM)**[85](index=85&type=chunk) [Note 9: Earnings Per Share](index=23&type=section&id=Note%209.%20Earnings%20Per%20Share) For the six months ended December 31, 2020, profit attributable to owners of the Company was RM 2.074 million, resulting in basic earnings per share of RM 0.0021 based on a weighted average of 1 billion ordinary shares, with diluted earnings per share being the same as basic earnings per share due to the absence of potential dilutive ordinary shares Earnings Per Share Calculation | Indicator | For the six months ended December 31, 2020 | For the six months ended December 31, 2019 | | :--- | :--- | :--- | | Profit Attributable to Owners | 2,074 Thousand Ringgit (RM) | 14,650 Thousand Ringgit (RM) | | Weighted Average Number of Ordinary Shares | 1,000,000,000 | 880,434,782 | | Basic Earnings Per Share | 0.21 Cents (RM) | 1.66 Cents (RM) | [Note 10: Dividends](index=23&type=section&id=Note%2010.%20Dividends) The Board does not recommend the payment of any interim dividend for the six months ended December 31, 2020 - No interim dividend is recommended for the current period[99](index=99&type=chunk) [Note 18: Events After Reporting Period](index=32&type=section&id=Note%2018.%20Events%20After%20Reporting%20Period) Subsequent to the reporting period, the Malaysian government reimposed the Movement Control Order (MCO 2.0) and declared a state of emergency in January 2021 in response to the third wave of the COVID-19 pandemic, measures that restrict economic activities and are expected to continue to have an uncertain impact on the Group's results and performance, with management closely monitoring the situation and taking steps to minimize adverse effects - The COVID-19 pandemic, which spread globally since early 2020, has significantly impacted the Group's revenue and profitability during the current period[138](index=138&type=chunk) - Due to the ongoing pandemic and government control measures, the potential impact on the Group's future financial results and condition cannot be estimated[139](index=139&type=chunk) [Management Discussion and Analysis](index=33&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's operational and financial performance, including business review, future outlook, project portfolio, detailed financial analysis, and the utilization of IPO proceeds [Business Review](index=34&type=section&id=Business%20Review) Severely disrupted by the COVID-19 pandemic and related control measures, the Group's total revenue significantly decreased by 52.7% year-on-year to RM 51.51 million, with civil engineering project revenue declining by 69.7%, while building construction project revenue grew by 243.7% due to new project commencements, and no revenue from site preparation works projects in this period Revenue Breakdown by Project Type (For the six months ended December 31) | Project Type | 2020 (Thousand Ringgit (RM)) | Share (%) | 2019 (Thousand Ringgit (RM)) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Site Preparation Works Projects | - | 0.0 | 151 | 0.1 | | Civil Engineering Projects | 31,117 | 60.4 | 102,752 | 94.4 | | Building Construction Projects | 20,394 | 39.6 | 5,934 | 5.5 | | **Total** | **51,511** | **100.0** | **108,837** | **100.0** | - The decline in revenue is primarily due to the ongoing COVID-19 pandemic, leading to business disruptions, delays in contract awards, and increased market competition[147](index=147&type=chunk) [Outlook](index=36&type=section&id=Outlook) Management anticipates a challenging FY2021 due to ongoing MCO in Malaysia and challenges in the oil and gas sector, with project delays, lack of new capital projects, and intense competition as key risks; however, management expects a potential recovery in the second half and is actively seeking new opportunities in Malaysia and neighboring countries, confident in navigating challenges with a robust balance sheet - The Malaysian economy contracted by **3.4%** in Q4 2020, with a full-year contraction of **5.6%**; despite initial control measures in early 2021 impacting near-term growth, the effect is expected to be less severe than in 2020, with growth trajectory likely to improve from Q2 onwards[156](index=156&type=chunk)[157](index=157&type=chunk) - The Group anticipates a highly challenging FY2021 but expects a potential recovery in the second half and is actively exploring opportunities in Malaysia and neighboring countries[158](index=158&type=chunk) [Projects on Hand](index=37&type=section&id=Projects%20on%20Hand) As of December 31, 2020, the Group had 10 projects on hand, covering civil and building construction engineering, located in areas including Port Dickson, Pengerang, and East Malaysia, with expected completion dates ranging from March 2021 to August 2023 - As of December 31, 2020, the Group had **10** projects under construction or awaiting commencement[159](index=159&type=chunk) [Financial Review](index=38&type=section&id=Financial%20Review) The financial performance for the period significantly declined, with revenue decreasing by 52.7% year-on-year and cost of sales by 48.8%, leading to a 64.6% reduction in gross profit and a drop in gross profit margin from 24.7% to 18.5%, while administrative expenses decreased, ultimately resulting in profit for the period plummeting from RM 14.7 million in the prior year to RM 2.1 million [Revenue](index=38&type=section&id=Revenue) The Group's revenue decreased by 52.7% from RM 108.8 million in the prior year to RM 51.5 million in the current period, primarily due to the ongoing COVID-19 pandemic and government control measures severely disrupting business, leading to delays in contract awards, new project delays, and intensified market competition - Revenue decreased by **52.7%** year-on-year, primarily attributed to the negative impact of the COVID-19 pandemic and related control measures[164](index=164&type=chunk) [Cost of Sales](index=38&type=section&id=Cost%20of%20Sales) Cost of sales decreased by 48.8% from RM 82 million in the prior year to RM 42 million, consistent with the revenue decline, with subcontracting fees accounting for the largest proportion at 55.4%, followed by direct labor costs (16.0%) and direct materials (15.6%) Cost of Sales Breakdown (For the six months ended December 31) | Item | 2020 (Thousand Ringgit (RM)) | Share (%) | 2019 (Thousand Ringgit (RM)) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Direct Materials | 6,566 | 15.6 | 15,242 | 18.6 | | Subcontracting Fees | 23,249 | 55.4 | 52,797 | 64.4 | | Direct Labor | 6,708 | 16.0 | 8,033 | 9.8 | | Other | 4,462 | 13.0 | 5,891 | 7.2 | | **Total** | **41,985** | **100.0** | **81,963** | **100.0** | [Gross Profit and Gross Profit Margin](index=39&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Due to a greater decline in revenue than in cost of sales, the Group's gross profit decreased by 64.6% from RM 26.9 million in the prior year to RM 9.5 million, with the gross profit margin also falling from 24.7% to 18.5% - Gross profit decreased by **64.6%** year-on-year, and the gross profit margin declined from **24.7%** to **18.5%**[171](index=171&type=chunk) [Profit and Earnings Per Share](index=40&type=section&id=Profit%20and%20Earnings%20Per%20Share) Considering all factors, the Group's profit for the period significantly decreased from RM 14.7 million in the prior year to RM 2.1 million, with earnings per share correspondingly dropping from RM 0.0166 to RM 0.0021 - Profit for the six months ended December 31, 2020, was approximately **2.1 million Ringgit (RM)**, with earnings per share of approximately **0.21 Cents (RM)**[178](index=178&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=41&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of December 31, 2020, the Group's financial position remained robust, with cash and cash equivalents significantly increasing to RM 89 million, a current ratio of 5.6 times, a quick ratio of 5.6 times, a gearing ratio of 6.6%, and total equity of approximately RM 140.4 million Key Financial Ratios | Ratio | As of December 31, 2020 | As of June 30, 2020 | | :--- | :--- | :--- | | Current Ratio (times) | 5.6 | 4.2 | | Quick Ratio (times) | 5.6 | 4.2 | | Gearing Ratio (%) | 6.6 | 5.2 | - As of December 31, 2020, the Group's cash and cash equivalents were approximately **89 million Ringgit (RM)**, a significant increase from **47.3 million Ringgit (RM)** as of June 30[184](index=184&type=chunk) [Use of Proceeds](index=45&type=section&id=Use%20of%20Proceeds) The Group's net proceeds from listing were approximately HKD 85 million, but the utilization of proceeds has slowed due to operational disruptions and negative demand impacts from the COVID-19 pandemic, with HKD 71.7 million remaining unutilized as of December 31, 2020; to address uncertainties and enhance flexibility, the Group plans to extend the expected timeline for utilizing the unutilized proceeds to June 30, 2022 - Due to the impact of the COVID-19 pandemic, the Group plans to extend the expected timeline for utilizing unutilized proceeds to **June 30, 2022**[227](index=227&type=chunk) Summary of Use of Proceeds (As of December 31, 2020) | Purpose | Planned Amount (HKD Million) | Unutilized Amount (HKD Million) | | :--- | :--- | :--- | | Performance Bonds | 8.9 | 8.9 | | Expanding Staff Team | 10.0 | 10.0 | | Purchase of Machinery | 17.8 | 17.8 | | Pre-project Expenses for New Projects | 26.7 | 21.6 | | Business Acquisitions | 13.4 | 13.4 | | **Total (Partial)** | **76.8** | **71.7** | [Other Information](index=47&type=section&id=Other%20Information) This section covers additional corporate information, including directors' and major shareholders' interests, details of the share option scheme, and the company's corporate governance practices [Directors' and Major Shareholders' Interests](index=47&type=section&id=Directors%27%20and%20Major%20Shareholders%27%20Interests) As of December 31, 2020, Executive Directors Mr. Tan Hun Tiong and Mr. Tan Han Peng jointly held 60% of the Company's shares through their controlling company TBKS International, which is the direct controlling shareholder holding 600 million shares, while Victory Lead Ventures Limited held 150 million shares, accounting for 15% - Directors Mr. Tan Hun Tiong and Mr. Tan Han Peng are deemed to be jointly interested in **600,000,000** shares (representing **60%**) of the Company[231](index=231&type=chunk)[232](index=232&type=chunk)[234](index=234&type=chunk) - Major shareholders TBKS International and Victory Lead Ventures Limited hold **60%** and **15%** of the Company's shares respectively[238](index=238&type=chunk) [Share Option Scheme](index=49&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on September 5, 2019, with a total of 100 million shares, representing 10% of the issued share capital, available for issue under the scheme as of December 31, 2020, and no share options have been granted, exercised, cancelled, or lapsed since its adoption - No share options have been granted since the adoption of the share option scheme[244](index=244&type=chunk) [Corporate Governance and Audit Committee](index=50&type=section&id=Corporate%20Governance%20and%20Audit%20Committee) The Company is committed to maintaining a high level of corporate governance and has complied with the Corporate Governance Code in Appendix 14 of the Listing Rules, with the Audit Committee, comprising three independent non-executive directors, having reviewed and approved the unaudited interim financial results for the period - The Company has complied with the principles and all relevant code provisions of the Corporate Governance Code throughout the period[250](index=250&type=chunk) - The interim financial results for the period are unaudited but have been reviewed and approved by the Audit Committee[254](index=254&type=chunk)

Financial Performance - The company's revenue decreased by approximately 22.1% from about RM 194.0 million in the fiscal year ending June 30, 2019, to approximately RM 151.1 million in the current fiscal year[13]. - The profit and total comprehensive income for the fiscal year were approximately RM 12.1 million, compared to RM 16.3 million for the previous fiscal year[13]. - Earnings per share for the current fiscal year were approximately 1.29 sen, down from 2.18 sen in the previous fiscal year[13]. - The group's revenue decreased by approximately 22.1% from about 194.0 million MYR in the previous fiscal year to about 151.1 million MYR in the current fiscal year[24]. - Revenue from civil engineering projects fell by approximately 13.2%, from about 159.6 million MYR to about 138.6 million MYR[26]. - The construction project revenue dropped from about MYR 33.4 million for the year ended June 30, 2019, to approximately MYR 12.3 million, representing a decrease of about 63.2%[29]. - The total sales cost decreased from approximately MYR 152.7 million to about MYR 117.1 million, a reduction of approximately 23.3%[31]. - Gross profit fell from about MYR 41.4 million to MYR 34.0 million, a decline of approximately 17.7%[34]. - Administrative expenses increased from approximately MYR 7.6 million to about MYR 16.8 million, primarily due to higher employee costs and professional fees[35]. - The company's tax expenses were approximately MYR 5.7 million and MYR 8.5 million for the years ended June 30, 2020, and 2019, respectively[40]. - The group's profit for the fiscal year was approximately 12.1 million MYR, down from 16.3 million MYR in the previous year, resulting in earnings per share of about 1.29 sen MYR compared to 2.18 sen MYR[45]. Operational Challenges - The company faced significant operational disruptions due to the Malaysian government's implementation of the Movement Control Order starting March 18, 2020[8]. - The company was allowed to resume operations on May 4, 2020, but faced slow progress due to new Standard Operating Procedures (SOPs) requiring comprehensive testing for all workers[13]. - The Recovery Movement Control Order was extended until the end of December 2020, allowing most economic sectors to operate under specific SOPs[9]. - The group anticipates a challenging fiscal year 2021 due to ongoing impacts from COVID-19 and delays in contract awards[15]. - The group experienced a significant operational disruption due to COVID-19, impacting civil and structural engineering demand, with an expected challenging fiscal year ahead[98]. - The group anticipates that the ongoing COVID-19 pandemic will continue to pose challenges in the current fiscal year[98]. Strategic Initiatives - The company aims to utilize the net proceeds from its IPO to support future development and business strategies[8]. - The group is actively exploring opportunities in East and West Malaysia and neighboring countries to drive growth[15]. - The group plans to reserve more funds to meet performance bond requirements for potential clients and expand its workforce[76]. - The group has outlined plans to acquire new machinery, including cranes and excavators, to support operational needs[88]. - The group plans to extend the timeline for utilizing unutilized funds to the end of the fiscal year 2022 to enhance future development flexibility[98]. Financial Management - The group has adopted a prudent financial management policy to ensure sufficient liquidity for operational needs and capital obligations[56]. - The current ratio improved significantly to 4.2 in 2020 from 1.7 in 2019, indicating better liquidity management[46]. - The total equity attributable to the company's owners increased to approximately 139.6 million MYR in 2020 from 67.8 million MYR in 2019, reflecting strong capital growth[55]. - The group reported cash and cash equivalents of approximately 47.3 million MYR in 2020, up from 12.6 million MYR in 2019, indicating improved cash flow[55]. - The interest coverage ratio was reported at 22.7 times in 2020, down from 25.3 times in 2019, indicating a decrease in the ability to cover interest expenses[46]. - The group faces significant risks due to reliance on a few major customers, which could impact cash flow and financial stability[62]. - The group's ability to secure new projects is uncertain and heavily dependent on competitive bidding processes, which may significantly impact financial performance[66]. - The group's profitability may fluctuate due to various factors, including the accuracy of cost estimates and the complexity of projects, which are beyond the group's control[70]. Corporate Governance - The company is committed to good corporate governance to enhance shareholder value and has adopted the corporate governance code as per the listing rules[137]. - The board of directors is responsible for overseeing the management and overall performance of the group, ensuring necessary financial and human resources are in place to achieve its goals[139]. - The company has established a diversity policy for its board members to ensure a balanced representation in terms of gender, age, cultural background, and professional qualifications[143]. - The nomination committee is responsible for ensuring diversity and regularly reviewing the board diversity policy to ensure its effectiveness[145]. - The company has adopted a nomination policy outlining the procedures and standards for selecting and recommending director candidates[144]. - The board will disclose the implementation status of the board diversity policy annually in the corporate governance report[143]. - The company has maintained compliance with the corporate governance code throughout the relevant period[137]. - The board has the authority to seek independent professional advice at the company's expense when necessary[142]. - The company provides monthly updates to the board for a balanced assessment of its performance in accordance with listing rules[141]. - The board has established various committees, including the audit committee, remuneration committee, and nomination committee, to assist in its governance responsibilities[139]. - The board consists of six directors, including two executive directors and four independent non-executive directors, ensuring a balanced composition for effective independent judgment[154]. - The company has appointed three independent non-executive directors, exceeding the regulatory requirement of at least one-third of the board[155]. - The nomination committee evaluates candidates for directorship based on their qualifications and contributions to the company, ensuring a rigorous selection process[149]. - The company has appropriate insurance arrangements for legal liabilities involving directors' responsibilities[156]. - The board is committed to maintaining high standards of corporate governance and compliance with relevant regulations[155]. - The company ensures that all new directors receive tailored onboarding training to understand their responsibilities and the company's operations[159]. - The independent non-executive directors contribute significantly to the board with their extensive business and financial expertise[155]. Audit and Compliance - The external auditor, Hong Kong Li Xin De Hao Accounting Firm Limited, was reappointed for the fiscal year, with fees for audit services amounting to 443,000 MYR and non-audit services totaling 472,000 MYR[186]. - The audit committee has been formed to oversee compliance with financial reporting and internal control principles[196]. - An independent internal control consultant has been appointed to review the company's financial procedures and internal control systems, confirming their effectiveness[196]. - The company has implemented additional internal control measures, including the appointment of an external compliance advisor to ensure adherence to listing rules[196]. - The company has adopted procedures for handling and disclosing inside information, ensuring unauthorized use is strictly prohibited[197]. - The company secretary has completed the required professional training hours as per listing rules[198].

Financial Performance - Revenue for the six months ended December 31, 2019, was RM 108,837,000, an increase of 6.5% from RM 102,489,000 in the same period of 2018[12] - Gross profit for the same period was RM 26,874,000, up from RM 25,403,000, reflecting a gross margin improvement[12] - Net profit for the period was RM 14,650,000, representing a 20.6% increase compared to RM 12,150,000 in the previous year[12] - Basic and diluted earnings per share increased to 1.66 sen from 1.62 sen[12] - The total comprehensive income for the six months ended December 31 increased from approximately 12.2 million MYR in 2018 to 14.7 million MYR in 2019[177] Assets and Liabilities - Total assets as of December 31, 2019, were RM 191,942,000, compared to RM 124,492,000 as of June 30, 2019[19] - The company reported a net asset value of RM 139,591,000 as of December 31, 2019, significantly up from RM 67,848,000[19] - The group’s total liabilities, including lease liabilities and bank borrowings, were approximately 16.9 million MYR as of December 31, 2019[185] - The company’s total liabilities related to guarantees provided by the controlling shareholder amounted to 31,222,000 MYR as of December 31, 2019, consistent with the previous period[135] Cash Flow - For the six months ended December 31, 2019, the net cash generated from operating activities was RM 15,043,000[32] - The net cash increase for cash and cash equivalents was RM 65,146,000, compared to RM 2,991,000 for the same period in 2018[33] - The total cash and cash equivalents at the end of the period was RM 77,758,000, up from RM 7,664,000 in the previous year[33] - The cash flow from investing activities was RM (6,890,000) for the period[32] Expenses - Administrative expenses increased to RM 6,707,000 from RM 2,688,000, indicating higher operational costs[12] - The total employee costs for the period were 12,256 thousand MYR, an increase from 8,246 thousand MYR in the previous year[89] - Financing costs decreased slightly to RM 461,000 from RM 542,000, reflecting improved financial management[12] Market and Business Strategy - The company is focused on expanding its market presence and exploring new product development opportunities[12] - The group aims to expand its market share by undertaking more large-scale projects in the civil and structural engineering sector in Malaysia[151] - The group is exploring opportunities outside Malaysia to expand its revenue base[157] Segment Information - The group has three reportable segments: site preparation projects, civil engineering projects, and building engineering projects[66] - Revenue from external customers for the civil engineering segment was 85,258 thousand MYR, and for the construction segment was 17,231 thousand MYR, totaling 102,489 thousand MYR[74] Employee Information - The group had 434 employees as of December 31, 2019, a decrease from 462 employees as of June 30, 2019[198] - The total remuneration for key management personnel for the six months ended December 31, 2019, was 3,138,000 MYR, up from 613,000 MYR in the same period of 2018, reflecting a substantial increase[138] Future Outlook - The outlook for the second half of the fiscal year 2020 may see a decrease in revenue due to uncertainties in the oil and gas industry[152] - The group expects to recognize revenue from unfulfilled contracts totaling 62,407 thousand MYR over the next few years[83] Corporate Governance - The financial statements were prepared in accordance with International Accounting Standards and the applicable disclosure requirements[39] - The company was incorporated on November 8, 2018, under the Cayman Islands Companies Law and listed on the Hong Kong Stock Exchange on September 30, 2019[35]

Financial Performance - The company's revenue increased by approximately 32.7% from RM 146.2 million in the fiscal year ending June 30, 2018, to RM 194.0 million in the fiscal year ending June 30, 2019[17]. - Profit attributable to owners decreased from RM 18.3 million in 2018 to RM 16.3 million in 2019, primarily due to listing expenses of approximately RM 8.2 million incurred during the fiscal year[17]. - Revenue from civil engineering projects rose from approximately MYR 107.7 million to approximately MYR 159.6 million, an increase of about 48.2%[28]. - Revenue from construction projects increased from approximately MYR 28.4 million to approximately MYR 33.4 million, reflecting a growth of about 17.6%[33]. - The company's sales costs rose from approximately MYR 114.1 million to approximately MYR 152.7 million, an increase of about 33.8%, consistent with revenue growth[35]. - Gross profit increased from approximately MYR 32.1 million to approximately MYR 41.4 million, a growth of about 29.0%[38]. - The gross profit margin slightly decreased from approximately 21.9% to 21.3%[38]. - Total comprehensive income for the years ended June 30, 2018, and 2019 was approximately MYR 18.3 million and MYR 16.3 million, respectively, with earnings per share of approximately 2.44 sen and 2.18 sen[47]. - Current ratio decreased from 1.8 to 1.7, while debt-to-equity ratio decreased from 12.8% to 1.4%[48]. - Total equity attributable to owners increased to approximately MYR 67.8 million from MYR 46.4 million[52]. Market Opportunities - The company aims to expand its market share by undertaking more large-scale projects in the civil and structural engineering sector in Malaysia[20]. - The Malaysian government has allocated 20,000 acres of land for the Pengerang Integrated Complex (PIPC), expected to be completed by 2035, which will drive demand for civil and structural engineering services[20]. - The RAPID project within PIPC has a capacity of 300,000 barrels per day and is expected to be completed in 2019 or 2020, contributing to significant business opportunities[20]. - The company anticipates continued demand for civil and structural engineering services in the oil and gas sector due to the growth of facilities like PIPC and the maintenance and upgrading of existing facilities[21]. Operational Challenges - Major risks include reliance on key customers and potential issues with subcontractors affecting operational performance[59]. - The majority of the group's revenue comes from a few major clients, with revenue from the top five clients accounting for approximately 97.0% and 92.6% of total revenue for the years ended June 30, 2018, and 2019, respectively, and revenue from the largest client representing about 30.0% and 57.4% of total revenue for the same periods[60]. - The group faces significant risks related to subcontractors, including potential non-performance, delays, or non-compliance, which could adversely affect profitability and financial performance[63]. - The group's ability to secure new projects through the bidding process is uncertain, and failure to obtain new projects could have a significant negative impact on sustainability and financial performance[64]. - A significant portion of the group's revenue is derived from PIPC projects, and any loss of business relationships or failure to secure new projects related to PIPC could adversely affect operations and financial performance[68]. Corporate Governance - The company has adopted a corporate governance code in accordance with the Stock Exchange Listing Rules, ensuring accountability and enhancing shareholder value[113]. - The board of directors is responsible for overseeing the management and overall performance of the group, ensuring necessary financial and human resources are in place to achieve its goals[115]. - A diversity policy for board members was adopted on September 5, 2019, focusing on achieving a balanced representation in relation to the company's growth[122]. - The nomination committee is tasked with ensuring diversity in skills, experience, and suitability for the company's business requirements when selecting board candidates[124]. - The company has established an audit committee, a remuneration committee, and a nomination committee as per the listing rules[115]. - The board has authorized senior management to manage daily operations and implement approved business plans and strategies[118]. - The company has committed to regular reviews of its corporate governance practices to adapt to changing circumstances and standards[113]. - The board members have the right to access group information and seek independent professional advice at the company's expense[119]. Employee and Management Structure - As of June 30, 2019, the group employed 462 staff members, an increase from 367 in 2018, with total employee costs approximately 18.5 million MYR for the fiscal year[72]. - The company's business objectives include reserving more funds for performance guarantees, expanding the workforce, acquiring machinery, and pursuing business acquisitions[73]. - Tan Chade Phang appointed as independent non-executive director on September 5, 2019, with over 15 years of financial and business analysis experience[94]. - Ng Chiou Gee Willy appointed as independent non-executive director on September 5, 2019, with approximately 25 years of experience in auditing, finance, and accounting[99]. - Sim Thean Wah serves as the group's financial director, responsible for overseeing financial management and administration since joining in May 2018[101]. - Low Yik Son has approximately 20 years of experience in the construction industry and has been the head of contracts, tenders, and procurement since 2017[106]. - Tan Yeong Li has 14 years of experience in the construction industry and is currently the head of logistics and fixed assets since October 2018[107]. Risk Management - The company has designed and implemented risk management policies to address various risks, including operational and regulatory risks[164]. - The risk management system includes procedures for identifying, analyzing, assessing, mitigating, and monitoring potential risks[164]. - The board confirmed that there are no significant uncertainties that could severely impact the company's ability to continue as a going concern[161]. - The group has established an audit committee and implemented formal arrangements for financial reporting and internal control principles to ensure compliance with listing rules and relevant laws and regulations[165]. - The internal control measures, policies, and procedures have been updated and revised to enhance the internal control system[168]. - The group has appointed an external internal control consultant to regularly review its internal control system and provide recommendations for improvement[168]. Share Issuance and Financial Planning - The net proceeds from the share issuance amount to approximately HKD 85.0 million, equivalent to MYR 45.0 million[76]. - Approximately HKD 8.9 million (10.5% of net proceeds) will be allocated for obtaining performance bonds for contracts planned for bidding in the next six months[76]. - Around HKD 13.4 million (15.8% of net proceeds) is designated for expanding the workforce to ensure sufficient human resources for new projects[76]. - Approximately HKD 17.8 million (20.9% of net proceeds) will be used for the purchase of machinery and equipment[76]. - An estimated HKD 26.7 million (31.4% of net proceeds) is expected to fund preliminary expenses for new projects[76]. - About HKD 13.4 million (15.8% of net proceeds) is anticipated for acquiring suitable and potential companies and businesses[76]. - Approximately HKD 4.8 million (5.6% of total net proceeds) will be allocated for general working capital and other corporate purposes[76]. Dividend Policy - The company did not recommend any dividend for the current fiscal year, but a mid-term dividend of MYR 5.6 million was declared by a subsidiary[54]. - The group has adopted a general annual dividend policy, declaring and paying dividends of approximately 10% of distributable profits for any specific financial year[178]. - The board does not recommend the payment of a final dividend for the financial year[186].