Revenue Performance - Air freight services generated approximately MYR 18.8 million in revenue, a decrease of about 42.3% compared to MYR 32.6 million in 2018[12]. - Sea freight services remained the largest revenue source, generating approximately MYR 34.4 million, unchanged from 2018[14]. - Revenue from non-air and non-sea freight services was approximately MYR 6.2 million, up from MYR 3.8 million in 2018[15]. - The total revenue from integrated logistics services for the fiscal year ended December 31, 2019, was approximately 60.2 million MYR, a decrease of about 16.1% or 11.6 million MYR compared to 71.8 million MYR in 2018[21]. - Revenue from air freight services accounted for approximately 29.2% of total revenue, while sea freight services contributed about 53.4% in the fiscal year 2019[21]. - The company recorded revenue of approximately 4.1 million MYR from the second-hand mobile phone trading business, representing about 6.4% of total revenue, an increase from 2.5 million MYR in 2018[17]. - The logistics services in Hong Kong generated approximately 4.0 million MYR in revenue, accounting for about 6.3% of total revenue, with no revenue recorded in 2018[18]. Operational Performance - The volume of air freight exports decreased from 5,933 tons in 2018 to 4,575 tons in 2019, while imports fell from 3,507 tons to 2,862 tons[13]. - Sea freight export volume increased from 7,214 twenty-foot equivalent units (TEUs) in 2018 to 9,744 TEUs in 2019, while imports decreased from 11,772 TEUs to 10,537 TEUs[14]. - Gross profit from integrated logistics services decreased to 11.4 million MYR, down approximately 5.8% from 12.1 million MYR in 2018, primarily due to a 42.3% decrease in revenue from air freight services[24]. - The gross margin for integrated logistics services improved from 16.9% in 2018 to 18.9% in 2019[24]. - The company reported an operating loss of approximately 4.5 million MYR for the fiscal year, compared to a loss of 3.9 million MYR in 2018[29]. Financial Position - The group's net current assets amounted to approximately RM 29.4 million, down from RM 35.1 million in 2018[31]. - Cash and bank balances were approximately RM 21.3 million, compared to RM 24.2 million in 2018[31]. - The group's debt-to-equity ratio increased to approximately 40.8% from 34.4% in 2018[31]. - The group has no significant investments or acquisitions during the fiscal year[33][34]. - The group has pledged assets with a net book value of RM 13.2 million as collateral for bank loans[36]. Strategic Initiatives - The company established logistics services and mobile trading businesses in Hong Kong during the fiscal year[9]. - The company aims to strengthen its market position in Hong Kong amidst a highly competitive logistics industry in Malaysia[10]. - The company plans to expand its logistics business in Hong Kong to attract more Chinese and international clients, aligning with its overall business strategy[20]. - The group has engaged a market research team to study railway freight services, aligning with the "Belt and Road" initiative[54]. - The group has allocated 15 million HKD for establishing logistics operations in Hong Kong, which was not initially planned in the IPO strategy[57]. Human Resources - The group has a total of 179 full-time employees as of December 31, 2019, down from 196 in 2018, with total employee compensation reaching 13.5 million MYR, a decrease from 13.9 million MYR in 2018[53]. - Employee compensation policies are regularly reviewed, with discretionary bonuses provided to senior management and key employees to enhance motivation[160]. Corporate Governance - The company has established a nomination policy and a dividend policy in response to the revised corporate governance code effective from January 1, 2019[71]. - The independent non-executive directors are members of the audit committee and the remuneration committee, ensuring oversight and accountability[62]. - The company has adopted a board diversity policy to ensure a mix of skills, experience, and perspectives among board members[87]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific affairs[89]. - The board is committed to maintaining ongoing dialogue with shareholders, particularly through annual general meetings and other communications[134]. Risk Management - The group has established risk management policies to address operational, market, liquidity, credit, and regulatory risks[41]. - The group relies heavily on information technology systems for operations, with potential risks associated with system failures[49]. - The group has implemented a disaster recovery plan covering critical applications and external server backups[50]. - The internal control system is designed to manage risks rather than eliminate them, providing reasonable assurance against significant misstatements or losses[127]. Audit and Compliance - The independent auditor's report indicates that reasonable assurance was obtained regarding the absence of material misstatements due to fraud or error in the consolidated financial statements[196]. - The audit committee assists the board in overseeing the financial reporting process[195]. - The independent auditor communicated significant audit findings and any material weaknesses in internal controls to the audit committee[199]. - The company acknowledges its responsibility to prepare financial statements that fairly reflect its affairs and performance for the fiscal year[117]. Shareholder Information - The company did not recommend the payment of a final dividend for the fiscal year[143]. - The five largest suppliers accounted for approximately 13.3% of the group's cost of sales, with the largest supplier accounting for about 3.6%[154]. - The five largest customers contributed approximately 19.0% of the group's total revenue, with the largest customer accounting for about 4.5%[155]. - As of December 31, 2019, the company's distributable reserves amounted to approximately 35.3 million MYR[150].
盛良物流(08292) - 2019 - 年度财报