Proceeds from IPO - The net proceeds from the initial public offering amounted to approximately HKD 105.2 million[1]. - The remaining unutilized proceeds as of December 31, 2023, total HKD 74.0 million[1]. Utilization of Proceeds - As of December 31, 2023, the actual use of proceeds includes HKD 50.3 million for enhancing distribution and sales capabilities, HKD 19.0 million for proprietary product business development, HKD 7.3 million for e-commerce mobile platform development, and HKD 18.1 million for strategic acquisitions and investments[1]. - The actual usage of proceeds for enhancing distribution and sales capabilities was HKD 8.4 million, while HKD 10.5 million was allocated for general working capital[1]. - The company plans to utilize the proceeds for various business purposes by December 2024[1].

Financial Performance - The company's revenue increased by approximately RM 96.0 million or 11.5% from RM 835.9 million in 2022 to RM 931.9 million in 2023[20] - The net profit for the year was approximately RM 27.1 million, compared to RM 26.8 million in 2022[21] - The company reported a gross profit of RM 110.3 million in 2023, slightly down from RM 111.6 million in 2022[17] - Gross profit margin decreased to approximately 11.8% from about 13.4% in the previous year, primarily due to competitive pricing strategies and inflationary pressures[27] - Other income rose by approximately 3.4 million MYR or 103.0% to about 6.7 million MYR, mainly due to the recovery of previously provided for trade receivables and interest income from fixed deposits[28] - Selling and distribution expenses increased by approximately 5.1 million MYR or 10.7% to about 52.8 million MYR, driven by rising salaries and increased vehicle maintenance costs due to revenue growth[29] - Administrative and other operating expenses increased by approximately 5.9 million MYR or 30.9% to about 25.0 million MYR, mainly due to professional fees and provisions for bad debts following the IPO[30] - Financing costs rose by approximately 0.8 million MYR or 53.3% to about 2.3 million MYR, attributed to increased interest rates and short-term borrowings[31] - Net profit for the reporting period was approximately 27.1 million MYR, with a net profit margin decreasing to 2.9% from 3.2% in the previous year[34] Assets and Liabilities - The total assets decreased from RM 369.1 million in 2022 to RM 349.1 million in 2023[17] - The total liabilities decreased from RM 156.2 million in 2022 to RM 121.5 million in 2023[17] - As of December 31, 2023, the company's current assets net value was approximately 189.3 million MYR, an increase from about 169.5 million MYR in the previous year[40] - The debt-to-equity ratio as of December 31, 2023, was approximately 24.1%, a decrease from 35.0% as of December 31, 2022, primarily due to an increase in the equity base[42] - As of December 31, 2023, the bank borrowings amounted to approximately RM 49.7 million, with a weighted average effective annual interest rate of about 4.00%[41] - The total available bank financing as of December 31, 2023, was approximately RM 122.8 million, of which RM 34.0 million was utilized and RM 88.8 million remained unutilized[41] Business Expansion and Strategy - The company plans to actively expand its business by purchasing new warehouses and seeking new suppliers[21] - The company aims to expand its private label products into Indonesia and China[21] - The company has obtained new distribution rights for dairy products in Northern Peninsula Malaysia and for sauces and condiments in Eastern Peninsula Malaysia[20] - The company distributes a wide range of products, including over 200 well-known international and domestic brands[23] - The company emphasizes strategic acquisitions and investments to enhance inventory capabilities[21] - The company continues to implement strategies to enhance market penetration in various regions to reduce reliance on specific markets[175] Human Resources - The group employed 840 full-time employees in Malaysia as of December 31, 2023, compared to 779 employees as of December 31, 2022[43] - The group did not encounter any significant issues in employee recruitment or retention during the reporting period[43] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with applicable governance provisions[76] - The board consists of seven members, including three executive directors and four independent non-executive directors[87] - The company held a total of five board meetings during the reporting period, with all executive directors attending all meetings[96] - The company has established a mechanism to ensure the board receives independent opinions and information, which is reviewed annually[85] - The company has complied with listing rules regarding the appointment of independent non-executive directors, with at least one possessing appropriate professional qualifications[84] - The chairman and CEO roles are currently held by Soon See Beng, who is considered the best candidate for these positions[93] - The company has implemented a standard code of conduct for directors' securities transactions, confirming compliance during the reporting period[79] - The board is responsible for strategy, business development, risk management, and compliance, among other duties[81] - The company has arranged appropriate liability insurance for directors concerning legal proceedings[86] - The board's composition reflects independence, with independent non-executive directors making up at least one-third of the board[84] - The company has a robust internal control system and regularly reviews management performance and functions[83] Risk Management - The board has established a risk management framework aimed at minimizing risks rather than eliminating them entirely[150] - The risk management framework consists of five elements: internal environment monitoring, risk management, control activities, information and communication, and monitoring and improvement[151] - Identified risks are analyzed and assessed using established risk assessment criteria, which include both qualitative and quantitative techniques[154] - The annual risk assessment results indicate that significant risks identified during the reporting period showed limited variation in nature and extent[154] - The board reviewed the effectiveness of the risk management and internal control systems for the year ending December 31, 2023, and found them to be effective and adequate[156] - The internal control consultant will conduct an annual review of the internal control system's adequacy and effectiveness, reporting findings to the audit committee[155] Shareholder Communication and Dividends - The company has established multiple communication channels with shareholders to ensure timely and non-selective disclosure of information[165] - The board will consider various factors, including financial performance and cash flow, when proposing dividends to shareholders[143] - The company has no predetermined dividend payout ratio, and the declaration and payment of dividends are at the board's discretion[145] - The company is committed to maintaining sufficient reserves for future development while providing returns to shareholders[142] - A special dividend of HKD 0.023 per ordinary share was paid on June 30, 2023, totaling HKD 23,003,450 (approximately MYR 13,702,000)[146] - No final dividend was recommended for the reporting period, consistent with the previous year[147] Compliance and Training - The company has established procedures for handling and communicating insider information, ensuring timely and consistent disclosure[158] - Anti-bribery and anti-corruption training is provided to all managerial staff, covering topics such as integrity, confidentiality, and conflicts of interest[162] - The audit committee is responsible for overseeing the whistleblowing policy and has delegated daily responsibilities to the Chief Financial Officer[161] - The company has implemented a whistleblowing policy to encourage employees to report potential misconduct, with all reports treated confidentially[161] Appointments and Board Diversity - The company appointed Tan Teow Choon as an independent non-executive director in July 2022, who has extensive experience in strategic planning and business operations[61] - Ooi Guan Hoe was appointed as the Chief Financial Officer in June 2023, responsible for the company's financial functions and human resources[68] - Teh Mun Ning joined the company as Sales Director in September 2023, bringing over 30 years of business development and marketing experience[71] - The board currently consists of seven members, including one female director, reflecting a commitment to diversity[120] - The Nomination Committee is responsible for reviewing the board's structure, size, composition, and diversity at least annually[117] - The board has adopted a diversity policy that considers various factors such as skills, industry experience, and gender when appointing directors[120] - The company aims to gradually increase the proportion of female members in the board and senior management as suitable candidates are identified[120]

Financial Performance - Revenue for the year ended December 31, 2023, increased by approximately 11.5% to approximately 931.9 million MYR, compared to 835.9 million MYR for the year ended December 31, 2022[2]. - Profit attributable to owners of the company for the reporting period was approximately 27.1 million MYR, slightly up from 26.8 million MYR in the previous year[2]. - Basic earnings per share for the reporting period was 2.71 sen, down from 3.25 sen in the previous year[2]. - Total comprehensive income for the year was 28.3 million MYR, compared to 25.98 million MYR in the previous year[13]. - The company reported a decrease in gross profit to 110.34 million MYR from 111.62 million MYR in the previous year[13]. - The company's net profit margin decreased from 3.2% in the previous year to 2.9% during the reporting period, with net profit recorded at approximately 27.1 million MYR compared to 26.8 million MYR in the prior year[49]. - Other income for the year was 6.66 million MYR, significantly higher than 3.32 million MYR in the previous year[13]. - Financing costs increased to 2.28 million MYR in 2023 from 1.55 million MYR in 2022[13]. - The group reported a decrease in income tax expenses from approximately 12.8 million MYR in the previous year to about 9.6 million MYR, a reduction of 25.0%[115]. Equity and Liabilities - Total equity as of December 31, 2023, was 227.53 million MYR, up from 212.93 million MYR in 2022[5]. - Non-current liabilities increased to 27.16 million MYR in 2023 from 16.41 million MYR in 2022, primarily due to an increase in interest-bearing loans[5]. - As of December 31, 2023, bank borrowings amounted to approximately 4.97 million MYR, with a weighted average effective interest rate of about 4.00%[58]. - The group's debt-to-equity ratio as of December 31, 2023, was approximately 24.1%, a decrease from 35.0% as of December 31, 2022, mainly due to an increase in equity[137]. Dividends - The company did not recommend any final dividend payment to shareholders for the reporting period[2]. - The company declared a special dividend of HKD 0.023 per ordinary share for 2023, totaling 13,702 thousand HKD, compared to zero in 2022[62]. - The company does not recommend the distribution of any final dividend for the year ending December 31, 2023[168]. Trade Receivables and Payables - The total trade receivables as of December 31, 2023, were 52,337 thousand MYR, down from 60,462 thousand MYR in the previous year[46]. - Trade receivables from third parties amounted to 120,617 thousand MYR in 2023, slightly up from 120,100 thousand MYR in 2022[94]. - Trade payables to third parties decreased from 60,462 thousand MYR in 2022 to 52,337 thousand MYR in 2023[82]. - The company recorded a loss provision of 4,892 thousand MYR for trade receivables in 2023, compared to 3,807 thousand MYR in 2022[94]. Business Operations - The group operates a single reportable segment focused on food and beverage distribution and sales, as well as logistics and warehousing services in Malaysia[26]. - All revenue for the fiscal year ending December 31, 2023, and 2022, was generated from external customers in Malaysia, with no single external customer accounting for 10% or more of total revenue[27]. - The company reported a revenue of 922,215 thousand MYR for the food and beverage distribution and sales segment, with additional logistics and warehousing services contributing 9,705 thousand MYR, totaling 931,920 thousand MYR[41]. - Revenue from third-party brand distribution increased by approximately 92.6 million MYR, primarily due to growth in dairy products, sauces, oils, and frozen foods, which contributed approximately 113.4 million MYR[91]. - The company has strategic distribution rights for dairy products and sauces in various regions of Malaysia, impacting revenue positively for 2023[91]. Future Plans and Investments - The company plans to continuously evaluate and explore new business opportunities to achieve sustainable growth and long-term benefits for shareholders[50]. - The company plans to enhance distribution and sales capabilities with a budget of HKD 50.3 million, with an expected completion date of December 2024[183]. - The company aims to develop its proprietary product business with a budget of HKD 19.0 million, also expected to be completed by December 2024[183]. - The company is investing HKD 7.3 million in the development of an e-commerce mobile platform, with a completion target of December 2024[183]. - Strategic acquisitions and investments are budgeted at HKD 18.1 million, with an expected completion date of December 2024[183]. Governance and Compliance - The board of directors consists of three executive directors and four independent non-executive directors, ensuring a balance of power and authority[151]. - The company has adhered to the corporate governance code, with no deviations reported during the reporting period[150]. - The audit committee is responsible for overseeing the company's financial reporting system and ensuring compliance with legal and regulatory requirements[160]. - The company confirmed that all directors complied with the standard code of conduct for securities trading during the reporting period[152]. Miscellaneous - The company has not engaged in any purchases, sales, or redemptions of its listed securities during the reporting period[157]. - There were no significant subsequent events reported after December 31, 2023, until the date of this announcement[153]. - The company has no taxable profits in Hong Kong for the years ended December 31, 2023, and 2022, thus no provision for Hong Kong profits tax was made[170]. - The group has not encountered any significant difficulties or liquidity issues due to foreign exchange fluctuations during the reporting period[122].

Financial Position - As of June 30, 2023, the group's net current assets amounted to approximately RM 180.8 million, an increase from RM 169.5 million as of December 31, 2022[2]. - The group's cash and cash equivalents were approximately RM 38.0 million as of June 30, 2023, compared to RM 23.0 million as of December 31, 2022[2]. - The debt-to-equity ratio as of June 30, 2023, was approximately 29.8%, down from 35.0% as of December 31, 2022, primarily due to an increase in equity and a decrease in lease liabilities[3]. - The company’s total assets as of June 30, 2023, amounted to 215,576 thousand MYR, an increase from 212,927 thousand MYR at the beginning of the year[43]. - The company’s total liabilities decreased from 79,678 thousand MYR as of December 31, 2022, to 76,122 thousand MYR as of June 30, 2023, reflecting a reduction of approximately 3.2%[101]. - The total interest-bearing borrowings as of June 30, 2023, were 63,269 thousand MYR, compared to 48,721 thousand MYR for the current portion and 14,548 thousand MYR for the non-current portion[122]. Revenue and Profitability - The company reported a profit before tax of 23,662 thousand MYR for the six months ended June 30, 2023, compared to 22,630 thousand MYR for the same period in 2022, representing an increase of 4.6%[44]. - The total comprehensive income for the period was 16,351 thousand MYR, compared to 15,808 thousand MYR for the same period in 2022, indicating a growth of 3.4%[43]. - The company's revenue for the six months ended June 30, 2023, increased by approximately MYR 81.8 million or 20.5% to about MYR 481.7 million, compared to approximately MYR 399.9 million for the same period in 2022[181]. - Revenue from the distribution and sale of food and beverages for the six months ended June 30, 2023, was MYR 6,005,000, an increase from MYR 5,237,000 in the same period of 2022[141]. - The increase in revenue was primarily driven by a rise in distribution income from third-party brands, which increased by approximately MYR 79.8 million, mainly due to growth in dairy products, sauces, oils, and seasonings[181]. - Net profit for the period was approximately 16.5 million MYR, compared to about 16.0 million MYR in the same period last year, with a net profit margin decreasing from 4.0% to 3.4%[188]. Expenses and Costs - Employee costs, including directors' remuneration, totaled RM 20,326 thousand for the six months ended June 30, 2023, up from RM 17,885 thousand in the previous year[32]. - The cost of inventory for the six months ended June 30, 2023, was RM 415,637 thousand, compared to RM 336,360 thousand for the same period in 2022[32]. - Selling and distribution expenses rose by approximately 4.5 million MYR or 20.4% to about 26.6 million MYR, driven by increased salaries and transportation costs due to revenue growth of approximately 20.5%[185]. - Administrative and other operating expenses increased by approximately 1.8 million MYR or 21.2% to about 10.3 million MYR, mainly due to higher professional fees and director remuneration[186]. - Financing costs increased by approximately 0.5 million MYR or 71.4% to about 1.2 million MYR, attributed to rising interest rates following the Bank Negara Malaysia's actions to curb inflation[187]. Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2023, was 21,279 thousand MYR, significantly up from 5,228 thousand MYR in the same period of 2022[44]. - The company’s net cash from investing activities was 5,170 thousand MYR for the six months ended June 30, 2023, compared to a net outflow of (2,679) thousand MYR in the same period of 2022[44]. - Total lease cash outflow for the six months ended June 30, 2023, was approximately MYR 10,147,000, compared to MYR 904,000 for the same period in 2022, with MYR 9,450,000 related to the settlement of remaining consideration for a leasehold land acquired in the year ended December 31, 2022[126]. Inventory and Receivables - The company’s inventory increased by 5,203 thousand MYR during the first half of 2023, compared to a decrease of (13,358) thousand MYR in the same period of 2022[44]. - Trade receivables from third parties amounted to MYR 121,033,000 as of June 30, 2023, compared to MYR 120,100,000 as of December 31, 2022[95]. - The group’s inventory as of June 30, 2023, was valued at MYR 97,898,000, compared to MYR 102,630,000 as of December 31, 2022[94]. - Trade receivables aged analysis showed that MYR 70,300,000 was not overdue as of June 30, 2023[83]. Corporate Actions and Future Plans - The company declared a special dividend to shareholders listed as of July 17, 2023, with the dividend fully paid on August 14, 2023[35]. - The company plans to utilize IPO proceeds for enhancing distribution capabilities, developing proprietary products, and strategic acquisitions, with a total of 105.2 million HKD allocated for these purposes[190]. - The company successfully listed on the Main Board of the Hong Kong Stock Exchange on August 19, 2022, marking a significant milestone for future development[181]. Market Position and Strategy - The company operates in the FMCG trading and distribution sector, focusing on sustainable practices and extensive experience in last-mile delivery in Malaysia[171]. - The company has established partnerships with key retailers in Malaysia, leveraging over 40 years of industry experience to enhance brand presence and market reach[171]. - The company aims to drive sustainable growth while fostering production practices and enhancing client relationships through strategic initiatives[171]. - The company is recognized as one of the top 10 most promising FMCG trading and distribution companies in Malaysia for 2023[172]. - The board of directors includes experienced members with over 30 years in the F&B distribution industry, ensuring strong leadership and strategic direction[171]. Other Financial Metrics - Gross profit margin decreased to approximately 12.1% from about 14.2% in the same period last year, primarily due to competitive pricing strategies and inflationary pressures not fully passed on to customers[184]. - Other income increased by approximately 2.9 million MYR or 580.0% to about 3.4 million MYR, mainly due to higher interest income and foreign exchange gains[185]. - The company confirmed that the capital reserve represents the excess of the net proceeds from the issuance of shares over their par value, which can be distributed to shareholders[134].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 Swang Chai Chuan Limited 雙 財 莊 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2321） 截 至2023年6月30日 止 六 個 月 的 中 期 業 績 公 告 財務摘要 截至2023年6月30日止六個月（「本期間」）： • 本集團（定義見下文）錄得未經審核收益約481.7百萬令吉，較截至2022年 6月30日止六個月（「上一年度同期」）的約399.9百萬令吉增加約20.5%； • 本 集 團 於 本 期 間 錄 得 期 內 溢 利 約16.5百 萬 令 吉，較 上 一 年 度 同 期 的 約 16.0百萬令吉增加約3.1%； • 扣 除 非 經 常 性 上 市 開 支，本 集 團 於 本 期 間 錄 得 期 內 溢 利 約16.5百 萬 令 吉，於上一年度同期則錄得約19.5百萬令吉； • 本集團於本期間錄得未經審核本公司擁有人應佔每股盈利約1.64仙， ...

Board Composition and Governance - The board has established a nomination committee on July 14, 2022, consisting of three members, with the majority being independent non-executive directors[1]. - The nomination committee is required to meet at least once a year, with a quorum of at least two members[2]. - The board diversity policy includes considerations of skills, regional and industry experience, cultural and educational background, professional qualifications, race, gender, age, and tenure[4]. - The current board composition includes eight directors, with one female director, reflecting a commitment to increasing female representation[4]. - The nomination committee will regularly review the nomination and diversity policies to ensure their effectiveness[6]. - The company has adopted a nomination policy that outlines the selection criteria and procedures for recommending suitable candidates for the board[3]. - The board is responsible for ensuring that directors receive adequate training and professional development to fulfill their duties[14]. - The company has not held any meetings of the nomination committee for the year ending December 31, 2022, as it was only listed on August 19, 2022[13]. - The board is committed to appointing directors based on merit while considering the benefits of diversity[5]. - The board will gradually increase the proportion of female members in both the board and senior management as suitable candidates are identified[4]. - Khoo Chee Siang appointed as independent non-executive director on July 14, 2022, and serves as chairman of the remuneration committee and member of the audit and nomination committees[140]. - Ooi Guan Hoe appointed as independent non-executive director on July 14, 2022, and serves as chairman of the audit committee and member of the nomination and remuneration committees[143]. - The company has adhered to all applicable corporate governance code provisions since its listing date until December 31, 2022, with exceptions explained in the report[126]. - The group has confirmed compliance with the standards of conduct regarding securities trading by directors[128]. - The company has adopted the corporate governance code provisions as its own corporate governance code[126]. - The company has established mechanisms to ensure the board receives independent opinions and information on various aspects, including the time commitment of independent non-executive directors[161]. - The company has held two board meetings and one audit committee meeting since its listing date, with detailed attendance records maintained[166]. - The company has adopted a code of conduct for directors regarding securities trading as per the listing rules[157]. - The company has a commitment to maintaining robust corporate governance and effective internal control systems to enhance corporate value and accountability[156]. - The board has established an audit committee on July 14, 2022, in compliance with the corporate governance code[172]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, which are responsible for their respective duties as per the relevant terms of reference[192]. - The Audit Committee held one meeting since the listing date to assess the independence of the external auditor and review risk management[195]. - The Remuneration Committee is composed of three members, with the majority being independent non-executive directors, ensuring compliance with listing rules[198]. - The company adopted a remuneration policy that links bonuses and other incentives to the group's performance and individual performance of directors and senior management[199]. - The board of directors meets at least four times a year to review the financial and operational performance of the group[186]. - Independent non-executive directors confirmed their independence, complying with the independence guidelines of the listing rules[180]. - The company has a three-year service contract with each executive director, which can be terminated with three months' written notice[190]. - The board is responsible for strategic direction, business development, corporate governance, risk management, and compliance[179]. - The company has not held any meetings of the Remuneration Committee for the year ending December 31, 2022, as it was listed on August 19, 2022[200]. - The board of directors includes both executive and independent non-executive directors, ensuring a diverse composition[182]. Financial Performance - The company's revenue for the year ended December 31, 2022, increased by approximately 167.2 million MYR or 25.0% to about 835.9 million MYR, compared to approximately 668.7 million MYR for the previous year[42]. - The increase in revenue was primarily driven by a rise in distribution revenue from third-party brands and unbranded products, which increased by approximately 143.0 million MYR and 16.2 million MYR respectively[42]. - The growth in revenue was also attributed to the relaxation of Covid restrictions, which led to increased consumer spending, particularly in beverages and unbranded products[42]. - The distribution revenue increase was significantly driven by dairy products, sauces, oils, and condiments, which grew by approximately 108.6 million MYR[42]. - The company recorded a net profit of approximately 26.8 million MYR for the year ending December 31, 2022, compared to 23.6 million MYR for the year ending December 31, 2021, representing an increase of 9.0%[58]. - Adjusted net profit (excluding listing expenses) increased by approximately 5.2 million MYR or 18.2% to 33.8 million MYR for the year ending December 31, 2022, from 28.6 million MYR for the year ending December 31, 2021[58]. - Total revenue for the year 2022 was 835.9 million MYR, up from 668.7 million MYR in 2021, marking a growth of approximately 25%[54]. - The company's total assets increased significantly to 369.1 million MYR in 2022 from 213.0 million MYR in 2021, reflecting a growth of approximately 73.3%[54]. - The company’s total liabilities rose to 156.2 million MYR in 2022 from 102.8 million MYR in 2021, indicating an increase of approximately 52.0%[54]. - The company’s effective tax expense increased by approximately 3.6 million MYR or 39.1% to about 12.8 million MYR, mainly due to the increase in profit before tax[66]. - The company’s net profit margin decreased from 3.5% in the previous year to 3.2% in the reporting period, primarily due to a decline in gross margin[67]. - The gross profit margin decreased to approximately 13.4% from about 14.1% in the previous year, attributed to competitive pricing strategies and inflationary pressures[89]. - Administrative and other operating expenses rose by approximately RM 3.1 million or 19.4% to about RM 19.1 million, mainly due to professional fees and public utility costs incurred post-IPO[91]. - Financing costs increased by approximately RM 0.1 million or 7.1% to about RM 1.5 million, primarily due to rising interest rates[92]. - As of December 31, 2022, the company's current assets net value was approximately RM 169.5 million, up from RM 84.5 million as of December 31, 2021[97]. - The company's cash and cash equivalents were approximately RM 23.0 million as of December 31, 2022, compared to RM 4.5 million as of December 31, 2021[97]. - The total available bank financing amounted to approximately RM 99.6 million, with RM 73.7 million utilized and RM 25.9 million available[99]. - The company's debt-to-equity ratio decreased to approximately 35.0% from 40.7% the previous year, due to an increase in equity base[100]. - The company faced foreign currency risks but did not encounter significant difficulties or liquidity issues during the reporting period[101]. - Other income increased by approximately 2.0 million MYR or 153.8% to about 3.3 million MYR during the reporting period, primarily due to the reversal of provisions for overdue debts[64]. Business Strategy and Development - The company plans to continue expanding its business by seeking new suppliers, investing in product development, and enhancing inventory capabilities, with a focus on strategic acquisitions and investments[39]. - The company aims to expand its private label products into Indonesia and China[39]. - The company is committed to sustainable development goals through technological innovation and talent strength[31]. - The group has expanded its business to include seafood and frozen food distribution[135]. - The company successfully listed on the Hong Kong Stock Exchange on August 19, 2022, marking a significant milestone in its history[38]. - The company plans to utilize approximately 105.2 million HKD from its IPO proceeds for various business purposes, with 50.3 million HKD allocated for enhancing distribution and sales capabilities[70].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 Swang Chai Chuan Limited 雙 財 莊 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2321） 截 至2022年12月31日 止 年 度 的 全 年 業 績 公 告 財務摘要 截至2022年12月31日止年度（「報告期間」）： • 報告期間收益同比增加約25.0%至約835.9百萬令吉，而截至2021年12月 31日止年度（「上一年度」）的收益約為668.7百萬令吉。 • 本公司擁有人應佔報告期間溢利約為26.8百萬令吉（2021年：本公司擁有 人應佔溢利約23.6百萬令吉）。 • 扣除上市開支，本集團錄得本公司擁有人應佔報告期間溢利約33.8百萬 令吉，於上一年度則錄得約28.6百萬令吉。 • 報告期間每股基本盈利為3.25仙，而上一年度每股基本盈利為3.26仙。 • 本公司董事不建議向本公司股東就報告期間派付任何股息。 ...

Financial Performance - Revenue for the six months ended June 30, 2022, increased by approximately 79.2 million MYR or 24.7% to approximately 399.9 million MYR compared to 320.7 million MYR in the same period last year[11] - Gross profit rose by approximately 19.5% from approximately 47.6 million MYR to approximately 56.9 million MYR, while the gross margin decreased to about 14.2% from 14.8% due to competitive pricing strategies[18] - Profit before tax increased to approximately 22.6 million MYR from 19.0 million MYR, representing a growth of about 8.7%[11] - Net profit for the period was approximately 16.0 million MYR, up from 13.9 million MYR, marking an increase of about 15.3%[11] - Revenue for the six months ended June 30, 2022, was 399,932 thousand MYR, representing a 24.6% increase from 320,744 thousand MYR in 2021[53] - Gross profit increased to 56,943 thousand MYR, up 19.7% from 47,565 thousand MYR in the previous year[53] - Profit before tax rose to 22,630 thousand MYR, a 19.1% increase compared to 18,976 thousand MYR in 2021[53] - Net profit for the period was 15,999 thousand MYR, reflecting a 15.4% increase from 13,867 thousand MYR in the same period last year[53] Expenses and Costs - Sales and distribution expenses increased by approximately 3.9 million MYR or 21.4% to about 22.1 million MYR, primarily due to increased marketing and advertising costs[20] - Administrative and other operating expenses rose by approximately 0.5 million MYR or 6.3% to about 8.5 million MYR, driven by higher employee costs and public facility expenses[22] - Financing costs decreased by approximately 32,000 MYR or 4.2% to about 726,000 MYR, mainly due to reduced interest on lease liabilities[23] - Employee costs, including directors' remuneration, increased to 17,885 thousand MYR in the first half of 2022 from 16,116 thousand MYR in 2021, representing an increase of about 10.9%[75] Taxation - Income tax expense increased by approximately 1.5 million MYR or 29.4% to about 6.6 million MYR compared to the previous year, primarily due to an increase in profit before tax[24] - The total income tax expense for the six months ended June 30, 2022, was RM 6,631,000, an increase of 29.7% compared to RM 5,109,000 for the same period in 2021[7] Assets and Liabilities - As of June 30, 2022, the group's net current assets were approximately 97.1 million MYR, an increase from approximately 84.5 million MYR as of December 31, 2021[28] - Cash and cash equivalents as of June 30, 2022, were approximately 9.6 million MYR, up from approximately 4.5 million MYR as of December 31, 2021[28] - The group's debt-to-equity ratio as of June 30, 2022, was approximately 39.8%, a decrease from 40.7% as of December 31, 2021, mainly due to an increase in equity[29] - Total assets as of June 30, 2022, were 212,125 thousand MYR, compared to 169,467 thousand MYR at the end of 2021, marking a 25.1% increase[54] - Current liabilities increased to 114,992 thousand MYR from 85,015 thousand MYR, a rise of 35.2%[54] - The group reported a net cash inflow from operating activities of 5,228 thousand MYR, slightly down from 5,760 thousand MYR in the previous year[57] Shareholder Information - The company successfully listed on the Hong Kong Stock Exchange on August 19, 2022, which is expected to significantly benefit future development[14] - As of the report date, Mr. Soon See Beng, Mr. Soon Chiew Ang, and Mr. Soon See Long each hold 686,850,000 shares, representing 71.25% of the company's equity[43] - The company has adopted a share option scheme on July 14, 2022, but has not granted any options under this scheme since its adoption[48] - No interim dividend is recommended for the reporting period[49] - The company issued 241,000,000 new ordinary shares at HKD 0.56 per share on August 19, 2022, with no over-allotment option exercised[50] Operational Overview - The company operates a total of 8 owned warehouses and 4 leased warehouses, with a total designated storage capacity of approximately 25,600 cubic meters[14] - The company has over 140 self-operated logistics vehicles, of which about 100 are refrigerated, enhancing service quality[14] - The company operates primarily in Malaysia, with all revenue derived from external customers located in the country[69] - The company has a single operating and reportable segment focused on food and beverage distribution and sales, along with logistics and warehousing services[69] Future Outlook and Commitments - The net proceeds from the global offering are expected to provide additional funding for future cash needs, with an estimated net amount of approximately 87.0 million HKD from the issuance of 241,000,000 shares[27] - The group has a capital expenditure commitment of RM 10,473,000 as of June 30, 2022, significantly higher than RM 1,023,000 in 2021, indicating a strategic expansion[127] - The group entered into a sale agreement to purchase a factory in Terengganu, Malaysia, for RM 10,500,000, with a 10% deposit already paid[127] Financial Instruments and Fair Value - The fair value of financial assets measured at fair value through profit or loss included a non-listed money market fund valued at RM 234,000 as of June 30, 2022, slightly up from RM 233,000 in 2021[124] - The group reported no transfers between Level 1 and Level 2 fair value measurements during the reporting period[124] - The group has not experienced any transfers into or out of Level 3 fair value measurements during the reporting period[124]