Revenue and Financial Performance - Air freight services generated approximately MYR 17.3 million in revenue, a decrease of about 8.0% from MYR 18.8 million in 2019[11]. - Sea freight services remained the largest revenue source with approximately MYR 26.5 million, down from MYR 34.4 million in 2019[13]. - Revenue from non-air and non-sea freight services reached approximately MYR 24.8 million, significantly up from MYR 6.2 million in 2019[14]. - The company recorded revenue of approximately 23.8 million MYR from logistics services in Hong Kong, representing about 34.5% of total revenue, a significant increase from 4.0 million MYR (6.3%) in 2019[17]. - Total revenue from integrated logistics services increased by approximately 14.6% or about 8.8 million MYR, reaching approximately 69.0 million MYR in the current fiscal year[21]. - The gross profit decreased by approximately 24.3% to 8.8 million MYR, primarily due to a 22.9% reduction in revenue from sea freight services[24]. - The company recorded a loss of approximately 1.6 million MYR in the current fiscal year, an improvement from a loss of 4.5 million MYR in 2019[28]. - The company did not recommend a final dividend for the fiscal year, consistent with the previous year[31]. - The company’s available reserves for distribution to shareholders as of December 31, 2020, amount to approximately RM 29.4 million[155]. Logistics and Business Strategy - The company focuses on exploring business opportunities in logistics services as a key growth driver amid competitive market conditions[8]. - The logistics services provided include air and sea freight forwarding, warehousing, and supply chain management[8]. - The company aims to enhance its service offerings to meet customer needs and reduce costs through comprehensive logistics solutions[8]. - The overall logistics industry in Malaysia and Hong Kong remains highly fragmented and competitive, with a focus on cross-border e-commerce[8]. - The company plans to expand its logistics business in Hong Kong and Malaysia, focusing on cross-border freight and related services[20]. - The board believes that the logistics business will broaden the revenue base and improve capital efficiency, creating additional investment returns[20]. - The company is actively seeking suitable warehouses to support its expansion strategy[58]. - The company plans to establish logistics operations in Hong Kong, with an allocation of 15 million HKD for this initiative[59]. Operational Efficiency and Human Resources - The company aims to enhance operational efficiency and integrity through strategic human capital development and system deployment[69]. - The management team is focused on expanding market presence and improving service delivery in logistics and supply chain sectors[70]. - The total employee compensation for the fiscal year reached 12.5 million MYR, a decrease from 13.5 million MYR in the previous year[53]. - Employee compensation is regularly reviewed, with discretionary bonuses provided to senior management and key employees to enhance satisfaction and retention[166]. - The company has implemented team-building and training programs to foster employee connections and enhance team spirit[166]. Governance and Compliance - The company is committed to maintaining high standards of governance and financial integrity through experienced board members and management[68]. - The company is committed to fulfilling its responsibilities to shareholders and enhancing shareholder value through good corporate governance practices[73]. - The board of directors has held 10 meetings during the fiscal year to discuss and approve the group's consolidated performance for various periods, including the year ended December 31, 2019[85]. - The board is responsible for overseeing the group's business affairs and overall performance management, ensuring necessary financial and human resources are in place[75]. - The company has adopted a set of trading rules for directors regarding securities transactions, confirming compliance with the required standards during the fiscal year[74]. - The company has established a remuneration committee to review and determine the compensation of directors and senior management, referencing industry standards[175]. - The company emphasizes collective responsibility in corporate governance, including the review of compliance with legal and regulatory requirements[116][117]. - The company has established a formal process for appointing new board members to meet business needs and enhance governance[111]. Risk Management - The company faces various risks including operational, market, liquidity, credit, and regulatory risks, and has established risk management policies to address these[41]. - The group has established a comprehensive internal control system to manage risks and ensure effective operations[124]. - The internal control system aims to maintain the company's assets and ensure accurate financial reporting[130]. - The board reviews the risk management and internal control systems at least annually to ensure their effectiveness[126]. Shareholder Relations and Capital Management - The company encourages shareholder participation through various communication channels, including annual reports and meetings[139]. - The company has confirmed that it has sufficient public float, with over 25% of its issued shares held by the public as of the report date[185]. - The company has adopted a share option scheme allowing for the issuance of up to 8,000,000 shares, representing about 6.1% of the issued shares[156]. - The company has established a dividend policy that considers factors such as overall financial condition, working capital, and market conditions before recommending any dividend distribution[140]. Audit and Financial Reporting - The independent auditor has confirmed that the consolidated financial statements reflect the company's financial position accurately as of December 31, 2020[195]. - The audit committee's main functions include reviewing financial statements, ensuring compliance with accounting standards, and overseeing the relationship with external auditors[99][103]. - The audit committee reviewed the financial performance and compliance with accounting principles during the fiscal year[105]. - The audit confirmed that management's estimates and judgments regarding impairment assessments were supported by available evidence[199]. Acquisitions and Investments - The company completed the acquisition of 51% of the issued share capital of Zhongying Limited for HKD 6,600,000, which will be settled through the issuance of 200,000,000 shares at an issue price of HKD 0.033 per share[187]. - The company entered into an agreement on November 17, 2020, to acquire 51% of the issued share capital of a target company primarily engaged in general trading and manufacturing plastic products[37]. - On February 24, 2020, the company entered into an agreement to acquire one-third of the issued share capital of a target company engaged in IPO sponsorship and advisory services[33].
盛良物流(08292) - 2020 - 年度财报