Financial Performance - Revenue for the six months ended June 30, 2019, was RM 498.973 million, an increase of 20.7% compared to RM 413.496 million for the same period in 2018[10]. - Net profit for the same period was RM 7.830 million, a decrease of 29.3% from RM 11.089 million in 2018[10]. - Adjusted net profit, excluding listing expenses, was RM 11.494 million, down 17.9% from RM 13.998 million in the previous year[10]. - The company's revenue for the six months ended June 30, 2019, was 499.0 million MYR, an increase of 20.7% compared to 413.5 million MYR for the same period in 2018[25]. - The sales revenue from black scrap metal for the six months ended June 30, 2019, was 441.3 million MYR, compared to 353.4 million MYR for the same period in 2018[28]. - The group's revenue increased by 20.7%, but gross profit decreased from 29.2 million MYR in the same period last year to 29.1 million MYR[32]. - The gross profit margin declined to 5.8% for the six months ended June 30, 2019, compared to 7.1% for the same period in 2018[32]. - Shareholders' profit attributable to the company was 7.8 million MYR for the six months ended June 30, 2019, down from 11.1 million MYR in the same period last year[36]. - Basic and diluted earnings per share for the period were both 0.87 sen, compared to 1.48 sen in the previous year, indicating a decline of 41.2%[103]. - The pre-tax profit for the six months ended June 30, 2019, was 11,468 thousand MYR, compared to 16,053 thousand MYR in the same period of 2018, indicating a decline of approximately 28.9%[198]. Sales and Production - Black metal sales volume increased by 25.4% to 333,270 tons compared to 265,864 tons in the same period of 2018[13]. - The sales volume of black scrap metal increased by 25.4% during the review period, primarily due to a diversified customer base strategy and increased demand in Malaysia[27]. Assets and Equity - Total assets as of June 30, 2019, amounted to RM 218.024 million, up from RM 155.487 million as of December 31, 2018[10]. - Total equity attributable to shareholders was 179.9 million MYR as of June 30, 2019, up from 117.4 million MYR on December 31, 2018[41]. - The total borrowings amounted to 12.9 million MYR as of June 30, 2019, compared to 10.7 million MYR on December 31, 2018[41]. - The debt-to-equity ratio was 0.07 times as of June 30, 2019, down from 0.09 times on December 31, 2018[43]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2019, was negative at (17,879) thousand MYR, compared to a positive cash flow of 7,740 thousand MYR in 2018[118]. - Net cash used in investing activities was (2,811) thousand MYR, a decrease from (3,714) thousand MYR in the previous year[118]. - Financing activities generated a net cash inflow of 52,294 thousand MYR, a significant increase from a net cash outflow of (5,857) thousand MYR in 2018[118]. - The company reported a net increase in cash and cash equivalents of 31,604 thousand MYR, compared to a decrease of (1,831) thousand MYR in the same period last year[118]. - The company raised 65,081 thousand MYR from share issuance, which was not present in the previous year[118]. Shareholder Information - Major shareholders, including 5S Holdings, hold 51% of the shares, while the Sia brothers collectively hold 75% each[62]. - The company has adopted a share option scheme effective from February 19, 2019, with a maximum number of shares to be issued under the scheme capped at 100,000,000 shares, representing approximately 10% of the issued share capital as of June 30, 2019[68]. - No share options have been granted, exercised, cancelled, or lapsed under the share option scheme as of June 30, 2019[71]. - The company did not declare any dividends for the six months ended June 30, 2019, but announced a special dividend of 0.005 HKD per share on September 23, 2019[93]. Corporate Governance and Compliance - The board confirmed compliance with the corporate governance code, except for the deviation regarding the roles of the chairman and CEO[74]. - The company has complied with relevant laws and regulations during the reporting period and is not involved in any significant legal proceedings[97]. Future Plans and Strategies - The company plans to utilize the raised funds primarily for operational expansion and enhancing logistics support[13]. - The company aims to expand its supplier and customer base in the black scrap metal trade, leveraging favorable macroeconomic conditions in the Malaysian steel industry[17]. - The company plans to allocate approximately 35.5 million HKD or 45.1% of the net proceeds from the share sale for additional working capital to purchase black scrap metal[21]. - The company intends to invest about 12.3 million HKD or 15.6% of the net proceeds to build a new recycling facility and office in Selangor[21]. Employee Information - The group employed 112 employees in Malaysia as of June 30, 2019, an increase from 109 employees as of June 30, 2018[81]. - Employee costs and related expenses totaled 5.3 million MYR for the six months ended June 30, 2019, a decrease of 4.8% compared to 5.6 million MYR for the same period in 2018[81]. Accounting and Financial Reporting - The financial statements are presented in Malaysian Ringgit (MYR) and comply with International Financial Reporting Standards (IFRS) and applicable disclosure requirements[152]. - The company adopted several new accounting standards effective from January 1, 2019, including IFRS 9 (Financial Instruments) and IFRS 16 (Leases), which impact the recognition and measurement of leases[156]. - The company has not restated comparative information for 2018 under the new standards, continuing to report under IAS 17 for that period[157].
兴合控股(01891) - 2019 - 中期财报