Financial Performance - For the nine months ended May 31, 2020, the group's total revenue was approximately MYR 148.3 million, an increase of about 0.5% compared to the same period in 2019[4]. - For the nine months ended May 31, 2020, the gross profit was approximately MYR 21.1 million, a decrease of about 8.0% compared to the same period in 2019[4]. - The group recorded a net profit of approximately MYR 0.8 million for the nine months ended May 31, 2020[4]. - For the three months ended May 31, 2020, the group reported a revenue of MYR 32.6 million, compared to MYR 53.7 million in the same period of 2019, reflecting a significant decline[5]. - The operating loss for the three months ended May 31, 2020, was MYR 0.2 million, compared to an operating profit of MYR 6.5 million in the same period of 2019[5]. - The total comprehensive loss for the nine months ended May 31, 2020, was MYR 1.6 million, compared to a total comprehensive income of MYR 6.9 million in the same period of 2019[7]. - The basic and diluted loss per share for the three months ended May 31, 2020, was 0.33 sen, compared to earnings of 0.55 sen in the same period of 2019[5]. - The group reported a foreign exchange loss of MYR 2.5 million for the nine months ended May 31, 2020[7]. - Revenue for the nine months ended May 31, 2020, increased by approximately 0.5% or 0.7 million MYR compared to the same period in 2019, driven by increased demand from major customers[68]. - Net profit for the nine months ended May 31, 2020, was 0.8 million MYR, a decrease from 5.9 million MYR in 2019, with earnings per share of 0.11 sen compared to 0.74 sen in the previous year[78]. Revenue Breakdown - Revenue from Malaysia for the three months ended May 31, 2020, was RM 22,082,000, a decrease from RM 39,390,000 in the same period of 2019, representing a decline of approximately 44%[24]. - Revenue from Singapore for the nine months ended May 31, 2020, increased to RM 5,075,000 from RM 3,684,000 in 2019, marking a growth of approximately 37.9%[24]. - Revenue from packaging production for the nine months ended May 31, 2020, was approximately RM 87.6 million, accounting for about 59.1% of total revenue[49]. - Revenue from the production of inserts for the nine months ended May 31, 2020, was approximately RM 41.7 million, representing about 28.1% of total revenue[50]. - Revenue from the production of instruction manuals for the nine months ended May 31, 2020, was approximately RM 18.9 million, accounting for about 12.7% of total revenue[53]. - Revenue from label production for the nine months ended May 31, 2020, was approximately RM 0.1 million, representing about 0.1% of total revenue[54]. - Revenue contribution from the top five customers rose from approximately 110.2 million MYR for the nine months ended May 31, 2019, to 119.2 million MYR for the same period in 2020, accounting for 80.4% of total revenue[68]. Expenses and Costs - The cost of goods sold for the nine months ended May 31, 2020, was 127.2 million MYR, compared to 124.7 million MYR in 2019, reflecting an increase of 2.0%[31]. - Employee costs for the nine months ended May 31, 2020, were 27.7 million MYR, an increase of 12.1% from 24.7 million MYR in 2019[31]. - The company incurred tax expenses of 1.0 million MYR for the nine months ended May 31, 2020, compared to 0.3 million MYR in 2019, reflecting an increase of 243.0%[35]. - The company reported depreciation expenses of 3.4 million MYR for owned assets for the nine months ended May 31, 2020, compared to 3.2 million MYR in 2019, indicating a slight increase of 6.0%[31]. - Cost of sales increased by approximately 2.0% or 2.5 million MYR for the nine months ended May 31, 2020, due to higher depreciation, foreign labor costs, and maintenance expenses[70]. - Distribution expenses increased by approximately 26.8% to 8.1 million MYR for the nine months ended May 31, 2020, compared to 6.4 million MYR in the same period in 2019[72]. - Administrative expenses rose to approximately 11.9 million MYR for the nine months ended May 31, 2020, compared to 10.7 million MYR in 2019[73]. - Financing costs increased to approximately 6.4 million MYR for the nine months ended May 31, 2020, from 5.9 million MYR in the previous year[76]. Dividends and Shareholder Information - The board did not recommend the payment of an interim dividend for the nine months ended May 31, 2020[4]. - The company did not recommend an interim dividend for the nine months ended May 31, 2020, consistent with the previous year[34]. - Linocraft Investment holds a 51.00% stake in the company, with 408,000,000 shares[87]. - Stan Cam Holdings Limited also holds a 15.00% stake, with 120,000,000 shares[87]. - The company has not adopted any share option schemes as of May 31, 2020[91]. - No purchases, sales, or redemptions of the company's securities occurred during the nine months ending May 31, 2020[92]. - The company has complied with the corporate governance code, except for the chairman's absence at the annual general meeting[97]. - The audit committee, consisting of three members, has reviewed the financial statements for the third quarter[99]. - The company has no knowledge of any other entities holding significant interests in its shares as of May 31, 2020[90]. - The compliance advisor has no interests in the company's securities[95]. - The company confirmed that major shareholders do not have interests in any competing businesses[93]. - The company has established a set of trading rules for directors regarding securities transactions[96]. Operational Developments - The company has been focusing on strengthening its market position in the offset printing and packaging industry, with operations established in the Philippines since June 2016[47]. - The company has established a production facility in the Philippines for post-printing processes, enhancing operational efficiency and reducing transportation costs[57]. - The new warehouse in Malaysia, covering approximately 72,000 square feet, has commenced operations, improving inventory management efficiency[57]. - The company is in discussions with several renowned international brands to expand its business in Malaysia and the Philippines[55]. - The Malaysian factory resumed operations on May 4, 2020, after receiving approval from the Ministry of International Trade and Industry[62]. - The company has implemented safety measures in its factories in both Malaysia and the Philippines to ensure employee health during the pandemic[64]. - The company anticipates that the pandemic will negatively impact its operational and financial performance in the second half of the year due to disruptions and weakened consumer sentiment[64]. Compliance and Standards - The group adopted the revised Hong Kong Financial Reporting Standards effective from September 1, 2019, which did not significantly impact the group's performance and financial position[13]. - The group is currently evaluating the impact of newly issued or revised Hong Kong Financial Reporting Standards that have not yet come into effect[21]. - As of August 31, 2019, the group had irrevocable operating lease commitments amounting to approximately RM 5,450,000[16]. - The right-of-use assets recognized on September 1, 2019, totaled RM 37,086,000, which includes RM 10,434,000 for newly recognized operating leases and RM 26,652,000 reclassified from finance leases[19]. - The group recognized lease liabilities of RM 30,860,000 on September 1, 2019, after adjustments for previously recognized finance lease liabilities and future interest expenses[19]. - The average incremental borrowing rate for lease liabilities ranged from 4.56% to 9.3% as of September 1, 2019[16].
东骏控股(08383) - 2020 Q3 - 季度财报