Financial Performance - The total revenue for the fiscal year 2018 was 894.4 million MYR, representing a 21% increase compared to the previous year[12]. - The attributable profit for the same period was 24.6 million MYR, reflecting a growth of 6.5% year-on-year[12]. - The gross profit for 2018 was 58.4 million MYR, compared to 53.8 million MYR in 2017[10]. - The company reported a pre-tax profit of 32.3 million MYR for the fiscal year 2018, up from 31.0 million MYR in 2017[10]. - The company's revenue for the year ended December 31, 2018, was MYR 894.4 million, an increase of 21.0% compared to MYR 739.4 million in 2017[57]. - Net profit for the same period was MYR 24.6 million, up from MYR 23.1 million in 2017, reflecting a positive performance[57]. - The gross profit for the year ended December 31, 2018, increased to MYR 58.4 million from MYR 53.8 million in 2017, with a gross profit margin of 6.5%[71]. - Profit attributable to owners for the year ended December 31, 2018, was 24.6 million MYR, an increase from 22.8 million MYR in 2017[80]. Sales and Market Dynamics - The sales volume of ferrous metals reached 580,911 tons, an increase from 519,069 tons in 2017[10]. - The company sold approximately 580,911 tons of ferrous scrap metal in the fiscal year 2018, accounting for 87.8% of total revenue[16]. - Black metal scrap sales volume reached 580,911 tons in 2018, representing an increase of 11.9% from 519,069 tons in 2017[57]. - The local supply of black metal scrap is expected to grow at a compound annual growth rate (CAGR) of 9.7% from 2018 to 2022, driven by increasing production needs of local steel mills[57]. - The company anticipates continued strong demand for ferrous scrap metal due to the recovery of the local steel industry following protective measures implemented by the Malaysian government[17]. - The company aims to increase its market share in the Malaysian ferrous scrap metal market, which is currently experiencing high demand[16]. Assets and Liabilities - Total assets as of December 31, 2018, were 155.5 million MYR, while total liabilities were 38.1 million MYR[10]. - The company’s equity attributable to owners increased to 117.4 million MYR from 70.0 million MYR in the previous year[10]. - The total borrowings as of December 31, 2018, were 10.7 million MYR, down from 12.5 million MYR in 2017, primarily used for procurement and capital expenditures[84]. - The current ratio improved significantly to 4.0 times in 2018 from 1.7 times in 2017, indicating better liquidity[82]. Operational Developments - The company has established a national supplier base for scrap metal in Malaysia, enhancing its ability to procure recyclable ferrous scrap metal[16]. - The company operates three scrap yards with a total area of about 35,000 square meters, strategically located near steel mills in Melaka, Selangor, and Johor[16]. - The company has a fleet of 33 trucks, with 18 trucks having a capacity of 20 tons or more, enabling timely logistics support for suppliers[16]. - The company plans to expand its waste processing facilities and replace its truck fleet to enhance operational efficiency[57]. - The company intends to invest MYR 12.6 million (15.6%) in constructing a new recycling yard and office near the existing Selangor recycling yard[1]. Governance and Management - The board of directors consists of experienced individuals, ensuring effective governance and oversight[118]. - The company has established three board committees: the audit committee, nomination committee, and remuneration committee to strengthen governance practices[131]. - The audit committee, composed of independent non-executive directors, has the responsibility to review the company's financial status and internal controls[134]. - The company provides independent professional advice to directors when fulfilling their responsibilities[130]. - The company has implemented various internal control and risk management policies to safeguard shareholder investments and assets[150]. Shareholder Relations and Communication - The company emphasizes effective communication with shareholders to enhance investor relations and ensure timely disclosure of information[160]. - The company will hold its annual general meeting on June 15, 2019, providing shareholders an opportunity to communicate directly with the board[159]. - The company has established a website to provide the public with updated information on its business operations and financial data[160]. Future Outlook and Strategic Initiatives - The company believes that the favorable macroeconomic environment in the Malaysian steel industry will provide business development opportunities[13]. - The company is positioned to benefit from the shift of scrap recyclers from China to Southeast Asia and South Asia due to recent import restrictions imposed by the Chinese government[57]. - The company aims to leverage its financial resources, logistics support, and supplier network to capitalize on the anticipated growth in the Malaysian scrap metal industry[57].
兴合控股(01891) - 2018 - 年度财报