Financial Performance - For the six months ended February 29, 2020, the total revenue was approximately MYR 115.7 million, an increase of about 23.2% compared to the same period in 2019[4]. - The gross profit for the same period was approximately MYR 21.6 million, reflecting a significant increase of about 55.6% year-on-year[4]. - The net profit recorded for the six months was approximately MYR 3.5 million, compared to MYR 1.5 million in the previous year[5]. - The operating profit for the six months was approximately MYR 8.5 million, up from MYR 5.6 million in the prior year, indicating a year-on-year growth of about 51.5%[5]. - The basic and diluted earnings per share for the six months were 0.44 sen, compared to 0.19 sen in the same period last year, representing an increase of approximately 131.6%[5]. - The total comprehensive income for the six months was approximately MYR 2.9 million, compared to MYR 1.6 million in the previous year[11]. - Revenue for the three months ended February 29, 2020, was 56,587 thousand MYR, an increase of 27% compared to 44,533 thousand MYR for the same period in 2019[35]. - Revenue for the six months ended February 29, 2020, was 115,733 thousand MYR, up 23% from 93,929 thousand MYR in the same period of 2019[35]. - The company reported a pre-tax profit of 10,444 thousand MYR for the six months ended February 29, 2020, compared to 13,888 thousand MYR in the same period of 2019, reflecting a decrease of 25%[42]. - The company reported a profit attributable to owners of 3,494 thousand MYR for the six months ended February 29, 2020, compared to 1,522 thousand MYR for the same period in 2019, representing a year-over-year increase of 129%[52]. Revenue Breakdown - Revenue from packaging products was approximately MYR 65.8 million, accounting for 56.8% of total revenue, consistent with the previous year[82]. - Revenue from inserts was approximately MYR 36.0 million, representing 31.1% of total revenue, up from 25.8% in the previous year[83]. - Revenue from brochures was approximately MYR 14.0 million, which accounted for 12.0% of total revenue, down from 17.2% in the previous year[85]. - Revenue from labels was approximately MYR 0.1 million, representing 0.1% of total revenue, a slight decrease from 0.2% in the previous year[86]. - Major customer A contributed 28,141 thousand MYR in revenue for the six months ended February 29, 2020, compared to 24,744 thousand MYR in 2019, marking a 14% increase[37]. - Major customer F's revenue increased significantly to 32,730 thousand MYR for the six months ended February 29, 2020, from 17,223 thousand MYR in 2019, representing a growth of 90%[37]. - Revenue contribution from the top five customers rose from approximately 69.1 million MYR for the six months ended February 28, 2019, to 94.9 million MYR for the six months ended February 29, 2020, accounting for 73.6% and 82.0% of total revenue respectively[92]. Assets and Liabilities - As of February 29, 2020, total non-current assets amounted to MYR 134.9 million, an increase from MYR 118.5 million as of August 31, 2019[7]. - Current assets totaled MYR 136.7 million, slightly down from MYR 141.2 million in the previous period[7]. - The total liabilities as of February 29, 2020, were MYR 183.3 million, compared to MYR 174.3 million as of August 31, 2019[8]. - Trade receivables as of February 29, 2020, amounted to 60,461 thousand MYR, slightly up from 59,136 thousand MYR as of August 31, 2019[54]. - The company reported trade payables of 15,886 thousand MYR as of February 29, 2020, down from 17,526 thousand MYR in the previous year, reflecting a decrease of 9.3%[56]. - The group's current assets net value was approximately 14.0 million MYR as of February 29, 2020, down from 21.9 million MYR as of August 31, 2019[103]. - The group's bank borrowings and lease liabilities were approximately 121.2 million MYR and 32.7 million MYR respectively as of February 29, 2020[103]. Cash Flow and Investments - Operating cash flow for the six months ended February 29, 2020, was RM 10,020,000, a significant improvement from a cash outflow of RM 13,579,000 in the same period of 2019[13]. - Cash flow from investing activities was a net outflow of RM 5,121,000 for the six months ended February 29, 2020, compared to RM 1,160,000 in the previous year[13]. - Financing activities resulted in a net cash outflow of RM 15,471,000 for the six months ended February 29, 2020, compared to RM 3,478,000 in the same period of 2019[13]. - The company has capital commitments of 5,948 thousand MYR as of February 29, 2020, compared to 5,747 thousand MYR in 2019, showing a slight increase in future investment obligations[65]. - The company acquired property, plant, and equipment at a cost of approximately 7.4 million MYR for the six months ended February 29, 2020, compared to 4.3 million MYR in 2019, indicating a 72% increase in capital expenditure[52]. Corporate Governance and Compliance - The audit committee was established to assist the board in reviewing financial information and internal controls[138]. - The company confirmed compliance with corporate governance codes, except for the absence of the chairman at the annual general meeting[136]. - No major shareholders or directors have interests in competing businesses during the reporting period[132]. - The mid-term financial statements have not been audited but were reviewed by the audit committee[138]. Future Plans and Market Position - The company is focusing on strengthening its market position in the offset printing and packaging industry while negotiating with several well-known international brands to expand its business in Malaysia and the Philippines[87]. - The company plans to diversify its customer industries, with 10.1% of the net proceeds allocated for this purpose, amounting to HKD 6 million, but only HKD 5 million was utilized[120]. - The expansion of the product line was allocated 23.3% of the net proceeds, equating to HKD 14.2 million, with actual usage at HKD 10.1 million[120]. - Regional expansion accounted for 45.8% of the net proceeds, or HKD 28.1 million, with actual usage at HKD 23.1 million[120]. Employee and Remuneration - The company has a total of 783 employees as of February 29, 2020, compared to 755 employees on August 31, 2019, indicating a growth in workforce[113]. - Employee costs, including directors' remuneration, amounted to approximately MYR 19.4 million for the six months ended February 29, 2020, up from MYR 18.5 million for the same period in 2019[113]. - The total remuneration for executive directors for the six months ended February 29, 2020, was 2,103 thousand MYR, down from 2,325 thousand MYR in 2019, representing a decrease of 9.5%[67]. Shareholding and Securities - Ong Mr. holds 80.50% of Linocraft Investment, while Tan Woon Chay Mr. holds 19.50%[125]. - Linocraft Investment has a beneficial ownership of 408,000,000 shares, representing 51.00% of the company[127]. - Charlecote also holds 51.00% of the company through its ownership of Linocraft Investment[128]. - Stan Cam Holdings Limited and Ralexi Investment Holdings Limited each hold 15.00% of the company[127]. - No share buyback or redemption of company securities occurred during the six months ending February 29, 2020[131]. - The company has not adopted any share option schemes[130].
东骏控股(08383) - 2020 - 中期财报