Financial Performance - Total revenue for the fiscal year 2020 was 868,312 thousand MYR, a decrease of 12.3% compared to 990,604 thousand MYR in 2019[15] - Net profit for the year was 8,392 thousand MYR, representing a 25.7% increase from 6,672 thousand MYR in 2019[15] - Total revenue for the fiscal year ended December 31, 2020, was 868.3 million MYR, a decrease of 12.4% from 990.6 million MYR in 2019[24] - Net profit for the fiscal year ended December 31, 2020, was 8.4 million MYR, an increase of 1.7 million MYR from 6.7 million MYR in 2019, attributed to improved gross margin due to rising global steel prices in the second half of 2020[24] - The group's gross profit margin increased from 5.1% in the fiscal year ended December 31, 2019, to 5.6% in the fiscal year ended December 31, 2020, primarily due to better pricing for black scrap metal supply and higher gross margins from export sales[17] - Other income rose from 0.09 million MYR in the fiscal year ended December 31, 2019, to 2.8 million MYR in the fiscal year ended December 31, 2020, mainly due to logistics services provided to customers and government wage subsidies[17] - The group's net profit attributable to shareholders increased from 6.7 million MYR in the fiscal year ended December 31, 2019, to 8.4 million MYR in the fiscal year ended December 31, 2020, in line with the increase in profit before tax[17] Assets and Liabilities - Total assets increased to 228,779 thousand MYR in 2020, up from 200,774 thousand MYR in 2019, marking a growth of 13.9%[18] - Non-current assets rose to 36,294 thousand MYR in 2020, compared to 28,500 thousand MYR in 2019, reflecting a growth of 27.5%[18] - Current assets totaled 192,485 thousand MYR, an increase from 172,274 thousand MYR in 2019, which is a growth of 11.5%[18] - Total liabilities increased to 44,530 thousand MYR in 2020, up from 24,917 thousand MYR in 2019, indicating an increase of 78.5%[18] - The group's current ratio decreased from 9.3 times in 2019 to 5.1 times in 2020, indicating a decline in liquidity[89] - The asset-to-liability ratio increased from 6.8% in 2019 to 11.7% in 2020, reflecting a rise in total borrowings[89] - Total borrowings as of December 31, 2020, amounted to 20.0 million MYR, up from 10.5 million MYR in 2019, primarily used for procurement and capital expenditures[93] Operational Challenges - The company faced significant operational disruptions due to the COVID-19 pandemic, with a nationwide movement control order implemented from March 18 to May 3, 2020[21] - The conditional movement control order was in effect from May 4 to June 9, 2020, followed by a recovery movement control order until August 31, 2020[22] - Black scrap metal sales volume decreased by 7.7% to 639,871 tons in 2020 from 692,899 tons in 2019[24] - The sales volume of black scrap metal decreased by 7.7% year-on-year due to temporary business closures during the COVID-19 lockdown[76] - The average selling price of black scrap metal fell by 4.3% compared to the previous year, contributing to the overall revenue decline[76] - The company is focused on improving operational efficiency and maintaining profitability despite lower revenue conditions[71] - The company has implemented standard operating procedures and strategies to mitigate risks associated with production and supply chain disruptions[71] Corporate Governance - The company has a commitment to corporate governance and compliance with regulatory standards[57] - The board includes members who have held significant positions in reputable financial institutions and companies[62] - The company has adopted the corporate governance code to ensure proper regulation of business activities and decision-making processes[110] - The board of directors consists of five executive directors and three independent non-executive directors[116] - The company has arranged appropriate liability insurance for its directors and senior management to cover responsibilities arising from corporate activities[114] - The company has established a practice of maintaining detailed records of board and committee meetings, ensuring transparency and accountability[135] - The board has established three committees: audit, nomination, and remuneration, to strengthen its governance practices[138] Environmental, Social, and Governance (ESG) Initiatives - The ESG report highlights the company's commitment to integrating sustainability measures across all business aspects, particularly in the procurement of recyclable black metal for steel mills[178] - The report covers the period from January 1, 2020, to December 31, 2020, focusing on the company's ESG initiatives in response to changes in its core business in Malaysia[179] - The company emphasizes stakeholder engagement, actively seeking feedback to improve operations and service delivery[188] - The company is committed to continuous improvement in its ESG activities, ensuring compliance with existing and new regulations[186] - The ESG report is prepared in accordance with the Hong Kong Stock Exchange's guidelines, emphasizing transparency and accountability[179] Shareholder Communication - The company emphasizes effective communication with shareholders to strengthen investor relations and ensure timely and non-selective disclosure of information[164] - The company has adopted a shareholder communication policy to enhance mutual relationships and communication with shareholders, including a dedicated website for updates[166] - All resolutions presented at the 2020 Annual General Meeting were passed, with independent voting conducted for each matter[163] - The company ensures that all voting results from shareholder meetings are promptly published on its website and the stock exchange[167] - The company has established procedures for convening special shareholder meetings upon request from shareholders holding at least 10% of the paid-up capital[168]
兴合控股(01891) - 2020 - 年度财报