Financial Performance - The group recorded unaudited revenue of approximately RM 471.8 million for the six months ended June 30, 2024, a decrease of about 2.1% compared to RM 481.7 million for the same period in 2023[1]. - The group reported a profit of approximately RM 14.3 million for the current period, down approximately 13.2% from RM 16.5 million in the previous year[1]. - The basic earnings per share attributable to the owners of the company were approximately 1.43 cents, compared to 1.64 cents for the same period last year[1]. - The gross profit for the six months ended June 30, 2024, was RM 55.5 million, down from RM 58.5 million in the previous year[2]. - Total comprehensive income for the period was RM 17.45 million, compared to RM 16.35 million for the same period in 2023[2]. - The group reported a total income of 1,086 thousand MYR for the six months ended June 30, 2024, down from 3,407 thousand MYR in the same period of 2023, representing a decline of 68.1%[14]. - The group’s profit attributable to shareholders for the six months ended June 30, 2024, was 14,283,000 MYR, compared to 16,450,000 MYR for the same period in 2023, reflecting a decrease of approximately 13%[18]. - The group recorded a profit of approximately 14.3 million MYR for the current period, down from approximately 16.5 million MYR in the same period last year, with a net profit margin declining from 3.4% to 3.0%[40]. Assets and Liabilities - Non-current assets as of June 30, 2024, amounted to RM 62.83 million, a decrease from RM 65.39 million as of December 31, 2023[3]. - Current assets net worth was RM 206.96 million, compared to RM 189.29 million in the previous year[4]. - Total liabilities decreased from RM 94.38 million to RM 99.00 million in the current period[4]. - The company's net assets increased to RM 244.98 million from RM 227.53 million in the previous year[5]. - The aging analysis of trade receivables showed that 113,532,000 MYR were within 30 days as of June 30, 2024, compared to 63,635,000 MYR as of December 31, 2023[24]. - The group had cash and cash equivalents of approximately 27.9 million MYR as of June 30, 2024, down from approximately 45.2 million MYR on December 31, 2023[43]. - The debt-to-equity ratio as of June 30, 2024, was approximately 16.7%, a decrease from 24.1% on December 31, 2023, due to an increase in equity base and a reduction in bank borrowings[44]. Expenses - The group incurred a total tax expense of 4,377 thousand MYR for the six months ended June 30, 2024, compared to 7,212 thousand MYR for the same period in 2023, reflecting a decrease of 39.5%[16]. - The group’s finance costs for the six months ended June 30, 2024, were 839 thousand MYR, down from 1,259 thousand MYR in the same period of 2023, indicating a reduction of 33.2%[15]. - The group’s employee costs, including directors' remuneration, amounted to 21,531 thousand MYR for the six months ended June 30, 2024, compared to 20,326 thousand MYR in the same period of 2023, an increase of 5.9%[15]. - Selling and distribution expenses decreased by approximately 2.4 million Ringgit (9.0%) to about 24.2 million Ringgit, mainly due to improved warehouse maintenance and reduced reliance on third-party logistics[36]. - Administrative and other operating expenses increased by approximately 2.6 million Ringgit (25.2%) to about 12.9 million Ringgit, primarily due to rising employee costs and foreign exchange losses[37]. - Financing costs decreased by approximately 0.4 million Ringgit (33.3%) to about 0.8 million Ringgit, mainly due to a reduction in bank financing utilization[38]. Dividends - The board of directors does not recommend the payment of an interim dividend for the current period[1]. - The company declared a special dividend of 0 HKD per ordinary share for the six months ended June 30, 2023, amounting to 13,702,000 MYR, which was paid on August 14, 2023[21]. - The company announced a special dividend of HKD 0.0135 per share, totaling approximately HKD 13,502,025 (equivalent to about MYR 8,137,589) to be paid on August 26, 2024[64]. - The company has not declared an interim dividend for the current period[63]. Corporate Governance - All directors have complied with the standards set forth in the Standard Code for trading the company's listed securities during the period[51]. - The company has adhered to the corporate governance code, with the chairman and CEO roles currently held by Soon See Beng, deemed the best candidate for these positions[52]. - The audit committee, established on July 14, 2022, consists of three independent non-executive directors and is responsible for overseeing the group's financial reporting process[54]. - The audit committee has reviewed the group's unaudited consolidated results for the period and discussed accounting principles and internal controls with management[55]. - The company’s board of directors consists of both executive and independent non-executive directors, ensuring a balanced governance structure[65]. Strategic Initiatives - The company aims to expand its core strengths and explore more business opportunities while implementing prudent cost control measures in a high-inflation business environment[32]. - The group plans to utilize the net proceeds from the global offering for various business purposes, including enhancing distribution and sales capabilities, developing proprietary products, and strategic acquisitions[41]. - The group is actively seeking strategic investments but has faced challenges in finding suitable opportunities[41]. Shareholder Information - As of the announcement date, Soon See Beng and other directors hold 723,000,000 shares, representing 72.29% of the company's equity[56]. - Soon Holdings Limited, which holds the shares, is owned by Soon See Beng (70%), Soon Chiew Ang (10%), Soon See Long (10%), and Soon Lee Shiang (10%)[57]. - The company has a significant shareholder, Soon Holdings Limited, holding 723,000,000 shares, which represents approximately 72.29% of the total equity[59]. - The company’s issued share capital is primarily held by Soon See Beng, Soon Chiew Ang, Soon See Long, and Soon Lee Shiang, with respective ownership stakes of 70%, 10%, 10%, and 10%[60]. Operational Insights - The company operates a total of 9 owned warehouses and 4 leased warehouses, with a total designated storage capacity of approximately 30,900 cubic meters as of June 30, 2024[32]. - The company has 166 self-operated logistics vehicles, enhancing service quality[32]. - The group employed 895 full-time employees in Malaysia as of June 30, 2024, emphasizing the importance of maintaining good relationships with employees to ensure operational efficiency[45]. Compliance and Reporting - The company has disclosed no other significant interests or short positions in shares as per the Securities and Futures Ordinance[61]. - The company has not conducted any significant post-period events from June 30, 2024, until the announcement date[64]. - The company’s mid-term performance announcement and report will be published on the Hong Kong Stock Exchange and the company’s website[65].
双财庄(02321) - 2024 - 中期业绩