Financial Performance - For the year ended December 31, 2019, the company's revenue was RM 68,327,729, a decrease of 14% compared to RM 79,989,035 in 2018[5]. - The company reported a loss before taxation of RM 2,209,758 for 2019, compared to a profit of RM 8,904,163 in 2018[5]. - The Group's revenue for FY2019 was approximately RM68.3 million, a decrease of about 14.6% or RM11.7 million compared to RM80.0 million for FY2018[47]. - The Group's cost of sales decreased by approximately 3.7% or RM2.0 million from approximately RM54.2 million in FY2018 to approximately RM52.2 million in FY2019[48]. - Total gross profit for FY2019 decreased by approximately 37.4% or RM9.6 million compared to FY2018[48]. - The decrease in sales volume of coconut-related products was attributed to increased competition and lower coconut prices in 2019[42]. Assets and Liabilities - The total assets of the company as of December 31, 2019, were RM 167,084,721, an increase of 18% from RM 141,812,902 in 2018[5]. - Total liabilities increased significantly to RM 46,839,641 in 2019, up from RM 19,058,746 in 2018, representing a 146% increase[5]. - The net assets of the company decreased slightly to RM 120,245,080 in 2019 from RM 122,754,156 in 2018[5]. - The company attributed a loss of RM 1,844,444 to equity shareholders for the year ended December 31, 2019[5]. Market and Growth Strategy - The company aims to be the preferred global supplier of coconut food products, focusing on quality and nutritional attributes[1]. - The Group is focused on manufacturing and distributing coconut-based food products, with a growing demand for coconut milk and beverages, particularly in Asian countries[23][28]. - Despite the challenges, the Group is optimistic about the growth of coconut-based products, driven by increasing consumer trends towards vegan food and recognition of the nutritional benefits of coconut[25][29]. - The Group aims to enhance brand recognition through aggressive marketing strategies, including rebranding and appointing specialized distributors[32][37]. - Currently, the Group exports products to over 40 countries, with the export market anticipated to be a key source of revenue growth[33][37]. - The Group's strategy includes widening its range of coconut products and enhancing its marketing efforts to become the preferred global supplier[26][29]. Operational Challenges - The global economic environment remains challenging, influenced by the ongoing trade war and the COVID-19 pandemic, which has affected over 100 countries[24][28]. - The Group's operations faced challenges due to the COVID-19 pandemic and related government measures, impacting supply chain and customer ordering processes[40]. - The Group's factory operations continued during the Movement Control Order as it is involved in the food supply sector[43]. Management and Team Experience - Tang Koon Fook has over 20 years of experience in the food industry and has been responsible for overall management and financial management since the group's establishment[60]. - Lee Sieng Poon has over 35 years of experience in the food industry, focusing on sales, marketing, and factory operations[64]. - Yap Boon Teong has over 25 years of experience in the food industry, primarily responsible for implementing new projects and providing technical support[66]. - Wong Yuen Lee has over 15 years of experience in the food industry, overseeing human resources and compliance matters[72]. - The company has a strong management team with extensive experience in various aspects of the food industry, ensuring effective operational oversight[75]. Sustainability and Environmental Practices - The company is committed to sustainable practices, utilizing renewable energy resources and implementing recycling measures[34][36]. - The company emphasizes sustainability as a core value, integrating it into daily operations and committing to environmental protection, community investment, and quality control[141][143]. - The Environmental, Social and Governance (ESG) report outlines sustainability approaches and ESG performances for the period from January 1, 2019, to December 31, 2019[118]. - The company adheres to the ESG Reporting Guide set out by the Hong Kong Exchanges and Clearing Limited to disclose sustainability issues during the reporting period[120]. - The Group has implemented a sustainability policy enforced by the Environmental Performance Monitoring Committee[155]. Product Quality and Innovation - The company focuses on manufacturing and distributing coconut cream powder, low fat desiccated coconut, coconut milk, and related products, which account for the majority of total revenue during the reporting period[119]. - The Group has established an in-house chemical and microbiological testing laboratory to ensure high food quality and safety, critical for customer satisfaction[164]. - The production system is fully automated and centrally monitored, enabling consistent delivery of high-quality products[164]. - The company has invested in technological advancements and systematic manufacturing processes to enhance product quality and freshness[133]. Compliance and Risk Management - The Board of Directors oversees risk management, including ESG-related risks, ensuring that identified risks are prioritized and mitigation actions are implemented[145][146]. - The company is actively involved in compliance and regulatory matters to ensure operational integrity[72]. - During the reporting period, there were no known instances of non-compliance with applicable laws and regulations, including Malaysia's Food Hygiene Regulations 2009[165]. Environmental Impact - In 2019, total greenhouse gas emissions amounted to 9,915.06 tonnes of CO2e, an increase from 8,838.95 tonnes in 2018[188]. - Total energy consumption reached 26,028.34 MWh in 2019, compared to 22,261.27 MWh in 2018, indicating a significant rise in energy usage[188]. - The intensity of greenhouse gas emissions per tonne of production unit rose to 2.33 tonnes of CO2e in 2019, compared to 1.93 tonnes in 2018[188]. - Non-hazardous waste totaled 653.60 tonnes in 2019, an increase from 523.99 tonnes in 2018[191].
椰丰集团(01695) - 2019 - 年度财报