Financial Performance - Revenue for the six months ended June 30, 2021, was RM 773.7 million, a significant increase of approximately 133.0% compared to RM 332.1 million for the same period in 2020[11] - Gross profit for the same period was RM 46.9 million, up from RM 19.7 million in 2020, reflecting a strong recovery in profitability[11] - Net profit after tax for the six months was RM 16.2 million, compared to RM 1.6 million in the previous year, marking an increase of 912.5%[11] - The group's revenue for the six months ended June 30, 2021, was 773.7 million MYR, a 133.0% increase compared to 332.1 million MYR for the same period in 2020[19] - Gross profit for the six months ended June 30, 2021, rose by 138.1% to 46.9 million MYR from 19.7 million MYR in the same period of 2020[26] - The company reported a total comprehensive income of 93,410 thousand MYR for the six months ended June 30, 2021, compared to 16,241 thousand MYR for the same period in the previous year, indicating a substantial increase[111] - The company reported a profit before tax of 23,673 thousand MYR for the six months ended June 30, 2021, compared to 2,776 thousand MYR for the same period in 2020, marking an increase of approximately 752.5%[144] - The company reported a net profit of 16.215 million MYR for the six months ended June 30, 2021, compared to 1.552 million MYR in the previous year, reflecting a substantial growth in earnings[101] Assets and Equity - The total assets as of June 30, 2021, amounted to RM 258.8 million, an increase from RM 228.8 million as of December 31, 2020[11] - The company reported a total equity attributable to owners of RM 197.6 million, up from RM 184.2 million in the previous year[11] - The total equity attributable to the owners of the company increased to 197.6 million MYR as of June 30, 2021, from 184.2 million MYR at the end of 2020[34] - As of June 30, 2021, total equity increased to 197,597 thousand MYR from 184,249 thousand MYR at the beginning of the year, reflecting a growth of approximately 7.3%[110] Sales and Market Position - Black metal sales volume reached 417,584 tons, representing a 61.6% increase compared to the same period in 2020[14] - The sales volume of black scrap metal increased by 61.6% compared to the same period in 2020, contributing significantly to revenue growth[19] - The company anticipates facing challenges from the COVID-19 pandemic in the second half of 2021, but expects strong demand for steel products to continue[14] - The company plans to expand its supplier and customer base to enhance its market position in the black metal trading industry in Malaysia[14] - The management believes that once the movement control order is lifted, the company will quickly recover from the setbacks experienced during the pandemic[14] - The company is committed to leveraging its core competitive advantages to strengthen its market leadership in the black metal sector[14] Financial Ratios and Liquidity - The company's liquidity ratio as of June 30, 2021, was 4.1 times, down from 5.1 times as of December 31, 2020[31] - The gross profit margin slightly increased to 6.1% from 5.9% in the previous year[26] - The accounts receivable turnover period decreased significantly to 28 days from 54.1 days, reflecting improved credit control policies[33] - The inventory turnover period improved to 12.0 days from 15.0 days in the previous year, indicating better logistics management[33] Borrowings and Liabilities - The total borrowings as of June 30, 2021, were 21.5 million MYR, up from 20.0 million MYR at the end of 2020, primarily used for procurement and capital expenditures[34] - The company's debt-to-equity ratio was 11.6% as of June 30, 2021, slightly down from 11.7% at the end of 2020[35] - The group’s total liabilities increased by 7.9% from 19,962 thousand MYR to 21,535 thousand MYR, indicating a trend of increasing leverage[173] Employee and Operational Costs - As of June 30, 2021, the group employed 162 staff, an increase from 129 staff as of June 30, 2020, representing a growth of 25.6%[79] - Total employee costs and related expenses for the six months ended June 30, 2021, amounted to 10.2 million MYR, a 72.9% increase compared to 5.9 million MYR for the same period in 2020[79] Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2021, was 13,229 thousand MYR, a significant improvement compared to a net cash used of 20,721 thousand MYR in the same period of 2020[114] - Operating cash flow for the six months ended June 30, 2021, was 26,677 thousand MYR, a significant increase from 7,282 thousand MYR in the same period of 2020[200] - The company’s investment activities resulted in a net cash outflow of 2,060 thousand MYR for the six months ended June 30, 2021, compared to 5,065 thousand MYR in the same period of 2020[114] Corporate Governance and Compliance - The company has adopted high standards of corporate governance to protect shareholder interests and enhance corporate value[73] - The company has complied with all relevant laws and regulations during the reporting period, with no significant legal disputes reported[96] - The board of directors confirmed adherence to the standard code for securities trading throughout the review period[74] Share Capital and Ownership - The total number of issued ordinary shares as of June 30, 2021, was 1,000,000,000 shares[52] - Each of the Sia brothers holds a collective interest of 750,000,000 shares, representing 75% ownership[52] - 5S Holdings, in which the Sia brothers collectively hold 510,000,000 shares, accounts for 51% of the total shares[58] - Major shareholders, excluding directors, have disclosed interests in shares, with Koo Lee Ching and others holding 750,000,000 shares each, representing 75%[58] Challenges and Future Outlook - The group faces minimal foreign exchange risk as most transactions, assets, and liabilities are denominated in Malaysian Ringgit[43] - The company has plans to establish a new waste facility on the east coast of Peninsular Malaysia, with an investment of 4.546 million MYR[100] - The company has allocated 6.389 million MYR for the expansion of the Selangor waste facility, expected to be completed by Q4 2022[100]
兴合控股(01891) - 2021 - 中期财报