Financial Performance - The group's revenue for the year ended June 30, 2023, was approximately MYR 217.8 million, a decrease of about MYR 294.5 million or 57.5% compared to MYR 512.3 million for the year ended June 30, 2022[11]. - The group recorded a loss attributable to owners of the company of approximately MYR 8.2 million for the year ended June 30, 2023, compared to a profit of approximately MYR 12.5 million for the year ended June 30, 2022[11]. - Revenue decreased by approximately 294.5 million Ringgit or 57.5% from about 512.3 million Ringgit for the year ended June 30, 2022, to about 217.8 million Ringgit for the year ended June 30, 2023[19]. - Revenue from offshore construction services accounted for approximately 84.3% of total revenue, decreasing by about 277.8 million Ringgit or 60.2% from approximately 461.4 million Ringgit to about 183.6 million Ringgit[20]. - Revenue from land reclamation and related works accounted for about 5.5% of total offshore construction services revenue, decreasing by approximately 39.5 million Ringgit or 79.8% from about 49.5 million Ringgit to about 10.0 million Ringgit[20]. - Revenue from marine transportation accounted for approximately 94.5% of total offshore construction services revenue, decreasing by about 238.3 million Ringgit or 57.9% from approximately 411.9 million Ringgit to about 173.6 million Ringgit[21]. - Revenue from building and infrastructure services increased by approximately 9.2 million Ringgit or 122.7% from about 7.5 million Ringgit to about 16.7 million Ringgit, accounting for about 7.7% of total revenue[22]. - Revenue from the marine fuel trading business decreased by approximately 25.9 million Ringgit or 59.7% from about 43.4 million Ringgit to about 17.5 million Ringgit, accounting for about 8.0% of total revenue[25]. - Gross profit decreased by approximately 16.9 million Ringgit or 57.9% from about 29.2 million Ringgit to about 12.3 million Ringgit, with a slight decrease in gross profit margin from about 5.7% to about 5.6%[26]. - Other income increased from about 1.2 million Ringgit to about 3.3 million Ringgit, mainly due to increased interest income from bank deposits[27]. Contracts and Projects - The group completed a total of 7 offshore construction contracts during the year, with original contract amounts totaling approximately MYR 52.2 million for 5 reclamation and related works contracts and MYR 80.0 million for 1 building and infrastructure contract[16]. - As of June 30, 2023, the group had 4 ongoing offshore construction contracts with an original contract total of approximately MYR 947.4 million and 4 ongoing building and infrastructure contracts totaling approximately MYR 201.6 million[16]. - The group is currently negotiating with a client regarding a terminated offshore construction contract originally valued at approximately MYR 323.9 million, with plans to commence new work in 2024[16]. - The total expected contract amount for submitted tenders as of June 30, 2023, is approximately 2,483.6 million Ringgit, with 5 tenders and 2 quotations submitted[17]. Market Conditions and Challenges - The group anticipates that recent announcements of large projects by the Malaysian government will act as a catalyst for market improvement[12]. - The group is facing challenges such as intense industry competition, inflationary pressures, and labor shortages, which may impact profitability[12]. - The group maintains a conservative outlook on recent business and financial performance due to industry competition and inflationary pressures[62]. - The overall performance of the company is influenced by the economic conditions of the markets in which it operates, as the construction industry is cyclical[108]. Governance and Compliance - The group is committed to adhering to high standards of corporate governance as outlined by the Hong Kong Stock Exchange[12]. - The group has adopted internal controls to ensure compliance with relevant laws and regulations, with no significant violations reported for the year ending June 30, 2023[115]. - The leadership team is committed to maintaining high standards of corporate governance and financial oversight[86]. Financial Position and Liquidity - As of June 30, 2023, the group had cash and cash equivalents of approximately 77.5 million MYR, down from 85.9 million MYR, primarily due to net cash outflows from operating and financing activities[37]. - The current ratio increased from approximately 1.9 times to about 2.1 times, mainly due to improved collection of trade receivables[38]. - The debt-to-equity ratio increased from approximately 10.2% to about 10.9%, attributed to an increase in total bank loans and lease liabilities from about 14.2 million MYR to approximately 14.6 million MYR[38]. - The group had unutilized bank financing of approximately 47.0 million MYR as of June 30, 2023, down from 50.7 million MYR[38]. - The group believes its liquidity position remains strong, supported by cash and cash equivalents, available bank financing, and strict cost control measures[62]. Employee and Management - The group has 55 employees as of June 30, 2023, a decrease from 57 in 2022, highlighting the importance of employee retention for future success[117]. - The company has a diversified management team with extensive experience in the construction and engineering sectors[95]. - The company emphasizes the importance of a safe and healthy work environment for employees and subcontractors[119]. - The company is focused on maintaining a strong relationship with employees, recognizing them as key assets for business growth[117]. Shareholder Matters - The board did not recommend any final dividend for the year ended June 30, 2023, consistent with the previous year[36]. - The company has approximately 130.5 million Ringgit available for distribution to shareholders as of June 30, 2023[152]. - The board will consider various factors, including financial performance and operational needs, when proposing any future dividends[123]. Risk Management - The group faces interest rate risk primarily from bank cash and loans, with cash flow interest rate risk concentrated on fluctuations in the Malaysian base lending rate[53]. - The group currently has no foreign exchange hedging policy but monitors foreign exchange risks closely[54]. - The company faces risks related to the approval timelines for offshore construction projects, which can impact project commencement and profitability[103]. Corporate Social Responsibility - The group made charitable donations totaling approximately 1.5 million Ringgit for the year ending June 30, 2023, compared to 1.1 million Ringgit in 2022[156]. - The group is committed to environmental compliance and has implemented measures such as sediment curtains and water quality monitoring[113]. - The group faces potential adverse impacts from climate change, including increased operational costs and risks to project timelines due to extreme weather events[110].
JBB Builders(01903) - 2023 - 年度财报