Financial Performance - Total revenue for the fiscal year ending August 31, 2019, was approximately MYR 205.3 million, compared to MYR 180.0 million for the previous year, representing a growth of about 14%[11] - Revenue for the fiscal year increased by approximately 14.1% or about 25.3 million MYR, driven by higher demand from major customers[21] - Net profit for the year ended August 31, 2019, was 6.6 million MYR, down from 7.0 million MYR in 2018, with earnings per share at 0.83 sen compared to 0.88 sen in 2018[36] - Gross profit decreased by approximately 17.9% to 30.0 million MYR, with the overall gross margin declining from about 20.3% to approximately 14.6%[24] - The group's net current assets amounted to approximately RM 21.9 million, an increase from RM 19.7 million in 2018[37] - The group's cash and cash equivalents were approximately RM 18.8 million, down from RM 20.0 million in 2018[37] - The group's bank borrowings and finance lease liabilities were approximately RM 126.0 million and RM 21.2 million, respectively, compared to RM 93.8 million and RM 16.9 million in 2018[37] - The group's debt-to-equity ratio was approximately 65.0%, up from 62.0% in 2018[37] - The total equity attributable to owners of the company reached RM 85.4 million, an increase from RM 78.7 million in 2018[37] - The group's distributable reserves as of August 31, 2019, amounted to approximately RM 82.2 million[149] Revenue Breakdown - Revenue from packaging products was approximately MYR 124.7 million, accounting for 60.7% of total revenue, compared to MYR 117.0 million and 65.0% in the previous year[13] - Revenue from inserts increased to approximately MYR 58.5 million, representing 28.5% of total revenue, up from MYR 41.7 million and 23.2% in the previous year[14] - Revenue from brochures was approximately MYR 21.9 million, making up 10.7% of total revenue, compared to MYR 20.6 million and 11.5% in the previous year[15] - Revenue from labels decreased to approximately MYR 0.3 million, representing 0.1% of total revenue, down from MYR 0.7 million and 0.3% in the previous year[16] - Revenue contribution from the top five customers rose from approximately 130.1 million MYR for the year ended August 31, 2018, to 154.7 million MYR for the year ended August 31, 2019, accounting for 72.3% and 75.4% of total revenue respectively[21] - The top five customers represented approximately 75.4% of the group's total revenue, with the largest customer accounting for about 26.7%[155] Cost and Expenses - Sales costs increased by approximately 22.2% or 31.9 million MYR due to rising material costs and increased manufacturing expenses[23] - Distribution costs decreased by approximately 42.1% to 9.8 million MYR, primarily due to reduced transportation expenses for fulfilling orders from a contract manufacturer in the Philippines[26] - Financing costs rose to approximately 5.4 million MYR from 4.3 million MYR, attributed to higher bank borrowings and finance lease amounts[28] - The total employee cost, including directors' remuneration, was approximately RM 27.4 million, up from RM 26.5 million in 2018[50] Operational Developments - The company has over 47 years of experience in the printing and packaging industry, focusing on contract manufacturing for direct clients and internationally renowned brands[8] - The company expanded its operations to the Philippines in June 2016, establishing a printing and packaging production line to better serve regional customers[8] - The company offers product development services for packaging design, allowing clients to see prototypes before mass production[13] - The company utilizes advanced technology and color management systems in its packaging production to meet international standards[13] - The company has established a production facility in the Philippines for post-printing processes, which began operations in October 2017[21] - The new warehouse in Malaysia, covering approximately 72,000 square feet, has commenced operations, enhancing inventory management efficiency[21] - The company plans to open a post-printing facility in northern Malaysia, which has not yet commenced[53] Corporate Governance - The company emphasizes good corporate governance to enhance shareholder value, adhering to GEM listing rules[74] - The board is responsible for monitoring the group's business and overall performance, setting the group's mission and standards[76] - The board includes five members, with independent non-executive directors making up more than one-third of the board[82] - The company has implemented a code of conduct for directors regarding securities trading, ensuring compliance throughout the fiscal year[75] - The board has established various committees to delegate responsibilities and ensure effective governance[76] - The company provides training for newly appointed directors to ensure understanding of their roles and responsibilities[84] - The board's functions include monitoring management performance and reviewing financial reports[83] - The company has made insurance arrangements to protect directors against legal liabilities[83] - The independent non-executive directors confirmed their independence, meeting the guidelines set by GEM listing rules[82] - The board held 6 meetings during the fiscal year and approved the consolidated performance for the year ending August 31, 2018, and quarterly results for the periods ending November 30, 2018, February 28, 2019, and May 31, 2019[85] - The company has adopted a board diversity policy to ensure a variety of skills, experiences, and perspectives among board members[98] - The company has implemented a nomination policy to identify and nominate suitable candidates for board positions, considering factors such as integrity, industry experience, and diversity[99] Risk Management - The group has established risk management policies to address various operational risks, including market and liquidity risks[44] - The company has established a continuous procedure to identify, assess, and manage significant risks faced by the group post-listing[122] - The board is responsible for reviewing the risk management and internal control systems at least annually[123] - The group has engaged an independent internal control consultant to review its internal control systems and procedures, including financial, operational, and compliance monitoring[122] - The company is not aware of any significant uncertainties that may severely affect its ability to continue as a going concern[119] Shareholder Information - The company has confirmed compliance with non-competition commitments from its controlling shareholders during the fiscal year[191] - The independent auditor has confirmed that the financial statements reflect the group's financial position accurately as of August 31, 2019[200] - The company maintains a sufficient public float of over 25% of its issued shares as per GEM listing rules[195] - No significant events requiring disclosure have occurred after August 31, 2019[197]
东骏控股(08383) - 2019 - 年度财报