Financial Performance - Total revenue for the fiscal year ending August 31, 2021, was approximately 257.2 million MYR, an increase from 223.4 million MYR in the previous year, representing a growth of 15.1%[11] - Gross profit increased by approximately 22.0% to RM 47.5 million, with the overall gross margin rising from 17.4% to 18.5%[22] - The group's net profit for the fiscal year was RM 7.3 million, an increase from RM 3.0 million in 2020, resulting in basic and diluted earnings per share of 0.91 sen compared to 0.38 sen in 2020[32] - Total revenue for the fiscal year increased by approximately 15.1% or RM 33.8 million, driven by higher demand from major customers, despite a decrease in insert sales[20] - The contribution from the top five customers increased from RM 180.9 million in the previous year to RM 197.2 million, representing 81.0% and 76.7% of total revenue respectively[20] Revenue Breakdown - Revenue from packaging products accounted for 72.6% of total sales in 2021, up from 67.4% in 2020, indicating a stronger focus on this segment[11] - Revenue from packaging production for the fiscal year ended August 31, 2021, was approximately RM 186.6 million, accounting for about 72.6% of total revenue, compared to RM 150.6 million and 67.4% in the previous year[12] - Revenue from the production of inserts for the fiscal year ended August 31, 2021, was approximately RM 48.5 million, representing about 18.9% of total revenue, down from RM 52.8 million and 23.6% in the previous year[13] - Revenue from the production of instruction manuals for the fiscal year ended August 31, 2021, was approximately RM 22.1 million, accounting for about 8.5% of total revenue, compared to RM 19.9 million and 8.9% in the previous year[15] Operational Updates - The company has been operational throughout the pandemic, with factories in Malaysia and the Philippines fully operational as of August 2021[8] - The company continues to monitor market conditions and assess the impact of the pandemic on operations and financial performance[8] - The company has expanded its operations into the Philippines since June 2016, establishing a production line to better serve regional customers[9] - The company has implemented health and safety measures for employees, including regular testing and provision of protective equipment[8] - The management is committed to developing new customer relationships while maintaining existing ones to mitigate operational impacts from the pandemic[8] Market Position and Strategy - The company is focused on strengthening its market position in the printing and packaging industry[9] - The group aims to diversify its customer industries, expand its product line, and geographically expand, with specific activities including the recruitment of brand managers and the establishment of operational warehouses in Malaysia[52] - The company plans to strengthen its market position in the printing and packaging industry while engaging with renowned international brands to expand its business in Malaysia and the Philippines[17] Financial Health and Risks - As of August 31, 2021, the group's bank borrowings were approximately RM 120.7 million, with cash and cash equivalents of RM 12.1 million, raising concerns about the group's ability to continue as a going concern[33] - The group's current assets net value was approximately RM 0.2 million, down from RM 12.5 million in 2020, and the current ratio was about 1.0 times compared to 1.1 times in 2020[35] - The group's capital debt ratio was approximately 68.5%, slightly up from 68.3% in 2020[35] - The group faced various risks, including operational, market, liquidity, credit, and regulatory risks, and has established risk management policies to address these[44] Corporate Governance - The board is committed to good corporate governance to enhance shareholder value, adhering to GEM listing rules[75] - The board has established various committees to oversee business matters and ensure effective accountability[77] - The company has adopted a code of conduct for directors' securities trading, confirming compliance for the fiscal year[76] - The board consists of five members, including executive and independent non-executive directors, ensuring a balanced composition[82] - The company has made insurance arrangements to protect directors against legal liabilities[84] Employee and Operational Developments - The group has approximately RM 57 million of unutilized bank financing available as of the date of approval of the financial statements[36] - The group has a total of 946 full-time employees as of August 31, 2021, an increase from 864 in 2020, with employee costs amounting to approximately 37.6 million MYR, up from 33.8 million MYR in 2020[48] - The group has implemented a performance-based bonus system for employees, which is linked to individual performance and sales targets[174] Environmental and Social Responsibility - The group has obtained ISO 14001:2015 environmental management system certification for its subsidiaries in Malaysia and the Philippines, demonstrating a commitment to environmental protection[168] - The group has invested resources in building water treatment plants in its production facilities in Malaysia and the Philippines to handle water contaminated by printing chemicals[168] - The group has complied with all applicable environmental laws and regulations in Malaysia and the Philippines during the fiscal year[169] - The group made a charitable donation of approximately 50,000 MYR to Persatuan Cerebral Palsy Johor during the fiscal year[198] Shareholder Information - As of August 31, 2021, Mr. Ong holds 408,000,000 shares, representing 51.00% of the company's equity[186] - Major shareholders include Linocraft Investment and Charlecote, each holding 408,000,000 shares or 51.00% of the company[189] - The company confirms that it has sufficient public float, with over 25% of its issued shares publicly held as per GEM listing rules[195]
东骏控股(08383) - 2021 - 年度财报