Financial Performance - The company's revenue increased by approximately 32.7% from RM 146.2 million in the fiscal year ending June 30, 2018, to RM 194.0 million in the fiscal year ending June 30, 2019[17]. - Profit attributable to owners decreased from RM 18.3 million in 2018 to RM 16.3 million in 2019, primarily due to listing expenses of approximately RM 8.2 million incurred during the fiscal year[17]. - Revenue from civil engineering projects rose from approximately MYR 107.7 million to approximately MYR 159.6 million, an increase of about 48.2%[28]. - Revenue from construction projects increased from approximately MYR 28.4 million to approximately MYR 33.4 million, reflecting a growth of about 17.6%[33]. - The company's sales costs rose from approximately MYR 114.1 million to approximately MYR 152.7 million, an increase of about 33.8%, consistent with revenue growth[35]. - Gross profit increased from approximately MYR 32.1 million to approximately MYR 41.4 million, a growth of about 29.0%[38]. - The gross profit margin slightly decreased from approximately 21.9% to 21.3%[38]. - Total comprehensive income for the years ended June 30, 2018, and 2019 was approximately MYR 18.3 million and MYR 16.3 million, respectively, with earnings per share of approximately 2.44 sen and 2.18 sen[47]. - Current ratio decreased from 1.8 to 1.7, while debt-to-equity ratio decreased from 12.8% to 1.4%[48]. - Total equity attributable to owners increased to approximately MYR 67.8 million from MYR 46.4 million[52]. Market Opportunities - The company aims to expand its market share by undertaking more large-scale projects in the civil and structural engineering sector in Malaysia[20]. - The Malaysian government has allocated 20,000 acres of land for the Pengerang Integrated Complex (PIPC), expected to be completed by 2035, which will drive demand for civil and structural engineering services[20]. - The RAPID project within PIPC has a capacity of 300,000 barrels per day and is expected to be completed in 2019 or 2020, contributing to significant business opportunities[20]. - The company anticipates continued demand for civil and structural engineering services in the oil and gas sector due to the growth of facilities like PIPC and the maintenance and upgrading of existing facilities[21]. Operational Challenges - Major risks include reliance on key customers and potential issues with subcontractors affecting operational performance[59]. - The majority of the group's revenue comes from a few major clients, with revenue from the top five clients accounting for approximately 97.0% and 92.6% of total revenue for the years ended June 30, 2018, and 2019, respectively, and revenue from the largest client representing about 30.0% and 57.4% of total revenue for the same periods[60]. - The group faces significant risks related to subcontractors, including potential non-performance, delays, or non-compliance, which could adversely affect profitability and financial performance[63]. - The group's ability to secure new projects through the bidding process is uncertain, and failure to obtain new projects could have a significant negative impact on sustainability and financial performance[64]. - A significant portion of the group's revenue is derived from PIPC projects, and any loss of business relationships or failure to secure new projects related to PIPC could adversely affect operations and financial performance[68]. Corporate Governance - The company has adopted a corporate governance code in accordance with the Stock Exchange Listing Rules, ensuring accountability and enhancing shareholder value[113]. - The board of directors is responsible for overseeing the management and overall performance of the group, ensuring necessary financial and human resources are in place to achieve its goals[115]. - A diversity policy for board members was adopted on September 5, 2019, focusing on achieving a balanced representation in relation to the company's growth[122]. - The nomination committee is tasked with ensuring diversity in skills, experience, and suitability for the company's business requirements when selecting board candidates[124]. - The company has established an audit committee, a remuneration committee, and a nomination committee as per the listing rules[115]. - The board has authorized senior management to manage daily operations and implement approved business plans and strategies[118]. - The company has committed to regular reviews of its corporate governance practices to adapt to changing circumstances and standards[113]. - The board members have the right to access group information and seek independent professional advice at the company's expense[119]. Employee and Management Structure - As of June 30, 2019, the group employed 462 staff members, an increase from 367 in 2018, with total employee costs approximately 18.5 million MYR for the fiscal year[72]. - The company's business objectives include reserving more funds for performance guarantees, expanding the workforce, acquiring machinery, and pursuing business acquisitions[73]. - Tan Chade Phang appointed as independent non-executive director on September 5, 2019, with over 15 years of financial and business analysis experience[94]. - Ng Chiou Gee Willy appointed as independent non-executive director on September 5, 2019, with approximately 25 years of experience in auditing, finance, and accounting[99]. - Sim Thean Wah serves as the group's financial director, responsible for overseeing financial management and administration since joining in May 2018[101]. - Low Yik Son has approximately 20 years of experience in the construction industry and has been the head of contracts, tenders, and procurement since 2017[106]. - Tan Yeong Li has 14 years of experience in the construction industry and is currently the head of logistics and fixed assets since October 2018[107]. Risk Management - The company has designed and implemented risk management policies to address various risks, including operational and regulatory risks[164]. - The risk management system includes procedures for identifying, analyzing, assessing, mitigating, and monitoring potential risks[164]. - The board confirmed that there are no significant uncertainties that could severely impact the company's ability to continue as a going concern[161]. - The group has established an audit committee and implemented formal arrangements for financial reporting and internal control principles to ensure compliance with listing rules and relevant laws and regulations[165]. - The internal control measures, policies, and procedures have been updated and revised to enhance the internal control system[168]. - The group has appointed an external internal control consultant to regularly review its internal control system and provide recommendations for improvement[168]. Share Issuance and Financial Planning - The net proceeds from the share issuance amount to approximately HKD 85.0 million, equivalent to MYR 45.0 million[76]. - Approximately HKD 8.9 million (10.5% of net proceeds) will be allocated for obtaining performance bonds for contracts planned for bidding in the next six months[76]. - Around HKD 13.4 million (15.8% of net proceeds) is designated for expanding the workforce to ensure sufficient human resources for new projects[76]. - Approximately HKD 17.8 million (20.9% of net proceeds) will be used for the purchase of machinery and equipment[76]. - An estimated HKD 26.7 million (31.4% of net proceeds) is expected to fund preliminary expenses for new projects[76]. - About HKD 13.4 million (15.8% of net proceeds) is anticipated for acquiring suitable and potential companies and businesses[76]. - Approximately HKD 4.8 million (5.6% of total net proceeds) will be allocated for general working capital and other corporate purposes[76]. Dividend Policy - The company did not recommend any dividend for the current fiscal year, but a mid-term dividend of MYR 5.6 million was declared by a subsidiary[54]. - The group has adopted a general annual dividend policy, declaring and paying dividends of approximately 10% of distributable profits for any specific financial year[178]. - The board does not recommend the payment of a final dividend for the financial year[186].
TBKS HLDGS(01960) - 2019 - 年度财报