Financial Performance - The company's revenue for the year ended December 31, 2019, was RM 990.6 million, an increase of 10.8% compared to RM 894.4 million in 2018[22]. - The net profit for 2019 was RM 6.7 million, a significant decrease from RM 24.6 million in 2018, reflecting tighter margins in the black scrap metal trade[23]. - The gross profit for 2019 was RM 50.4 million, down from RM 58.4 million in 2018, highlighting the impact of market conditions on profitability[20]. - The group's revenue for the year ended December 31, 2019, increased by 10.8% compared to the previous year, while gross profit decreased from MYR 58.4 million to MYR 50.4 million[78]. - The gross profit margin declined to 5.1% for the year ended December 31, 2019, down from 6.5% in the previous year[78]. Sales and Market Position - The sales volume of black scrap metal reached 692,899 tons in 2019, up 19.3% from 580,911 tons in 2018[22]. - The company sold approximately 580,911 tons and 692,899 tons of black scrap metal in the fiscal years 2018 and 2019, accounting for 87.8% and 87.5% of total revenue respectively[27]. - Local sales of black scrap metal accounted for 96.7% of total sales volume, with 669,766 tons sold domestically[75]. - Export sales of black scrap metal were 23,133 tons, representing 3.3% of total sales volume[75]. - The company has established a nationwide supplier base for recyclable black scrap metal in Malaysia, enhancing its market position[22]. Assets and Liabilities - The total assets of the company as of December 31, 2019, amounted to RM 200.8 million, compared to RM 155.5 million in 2018[20]. - The total liabilities decreased to RM 24.9 million in 2019 from RM 38.1 million in 2018, indicating improved financial stability[20]. - Non-current assets totaled RM 28.5 million, while current assets amounted to RM 172.3 million as of December 31, 2019[20]. - The total equity attributable to owners as of December 31, 2019, was MYR 175.9 million, up from MYR 117.4 million in 2018[84]. Operational Challenges - The company faced challenges due to global oversupply and trade tensions, impacting the steel market and procurement prices[23]. - The average selling price of black scrap metal decreased by 7.4% due to global oversupply and ongoing tensions in US-China trade relations[74]. - The management is currently unable to reliably estimate the impact of COVID-19 on the financial performance for the year ending December 31, 2020, due to the ongoing nature of the pandemic[24]. Corporate Governance - The board consists of five executive directors and three independent non-executive directors, complying with listing rules regarding independent director appointments[109]. - The board has established a diversity policy, considering factors such as gender, age, cultural background, and professional experience in its composition[110]. - The company has arranged appropriate liability insurance for its directors and senior management, with annual reviews of coverage[106]. - The board will consider separating the roles of chairman and CEO at an appropriate time to enhance governance[123]. Future Plans and Strategies - The company plans to act prudently in the face of global and regional economic downturn risks during the highly volatile year[24]. - The company aims to achieve new milestones in the black scrap metal trading industry[24]. - The company plans to consolidate its market leadership in Malaysia's black scrap metal trade and expand its supplier and customer base in 2020[70]. - The company anticipates significant growth in revenue and profitability by leveraging its core competitive advantages in the upcoming year[70]. Shareholder Engagement - The company encourages shareholder participation in annual general meetings and ensures that all resolutions are passed[159]. - The annual general meeting provides shareholders with direct communication opportunities with the board, including the external auditor[160]. - The company aims to enhance communication with shareholders through its website, providing timely updates on business operations and financial information[169]. Donations and Community Engagement - The company made cash and in-kind donations of approximately 93,890 MYR to various charitable organizations in Malaysia, focusing on children, youth, and elderly initiatives[185].
兴合控股(01891) - 2019 - 年度财报