Financial Performance - The group's revenue for the fiscal year ending June 30, 2024, decreased by approximately 79.8 million MYR or 21.7% to about 288.1 million MYR from approximately 367.9 million MYR in the previous fiscal year[7]. - The group recorded a loss attributable to shareholders of approximately 32.7 million MYR, compared to a loss of 8.7 million MYR in the previous fiscal year[12]. - The expected credit loss for trade receivables, contract assets, and other receivables amounted to approximately RM 22.1 million for the fiscal year, a significant increase from RM 1.7 million in 2023[56]. - Current ratio decreased to 2.3 in 2024 from 3.4 in 2023, indicating a decline in liquidity[62]. - The quick ratio also decreased to 2.3 in 2024 from 3.0 in 2023, reflecting a similar trend in short-term financial health[62]. - Total equity attributable to owners was approximately RM 110.9 million in 2024, down from RM 143.0 million in 2023[72]. - The company reported a loss attributable to owners of approximately RM 32.7 million for the fiscal year, compared to RM 8.7 million in 2023, with a loss per share of RM 0.0327[62]. Revenue Breakdown - Revenue from civil and structural engineering in Malaysia increased from approximately 50.9 million MYR to about 56.0 million MYR, with a gross profit rising from approximately 2.0 million MYR to about 3.6 million MYR, resulting in a gross margin of approximately 6.4% compared to 3.9% in the previous year[8]. - Revenue from civil and structural engineering in China increased from approximately 40.8 million MYR to about 52.5 million MYR, but gross profit decreased from approximately 3.9 million MYR to about 0.8 million MYR, leading to a gross margin of approximately 1.5% compared to 9.6% in the previous year[10]. - Revenue from oil and related products trade in China decreased significantly by 35.0% from approximately 276.2 million MYR to about 179.6 million MYR for the fiscal year[11]. - Revenue from site preparation projects rose from approximately 0.5 million MYR to about 2.9 million MYR, primarily due to the completion of project 53[21]. - Revenue from civil engineering projects increased by approximately 17.4% from about 43.9 million MYR to approximately 51.5 million MYR, driven by the completion of four projects[22]. - Revenue from construction projects decreased from approximately 6.6 million MYR to about 1.5 million MYR, mainly due to the completion of two projects in the previous year[24]. Challenges and Market Conditions - The group faced significant challenges in Malaysia due to insufficient new projects, rising material costs, and narrowing profit margins, attributed to intense bidding competition and unrealistic pricing targets set by project owners[8]. - In China, the economic environment remained challenging, with prolonged payment terms and increased credit losses on trade receivables and contract assets, which rose by approximately 19.3 million MYR compared to the previous year[10]. - The overall performance of the group was adversely affected by geopolitical tensions, inflationary pressures, and a sluggish property market in China[6]. - The company maintains a cautious approach in light of challenging market conditions and geopolitical tensions, actively seeking new projects and diversifying its business[14]. Strategic Focus and Future Plans - The group is closely monitoring economic conditions and adjusting business strategies as necessary to respond to changing market conditions and improve business performance[6]. - The group is focusing on completing existing projects in China and improving cash flow and financial stability through better communication with clients regarding project timelines and payment processes[10]. - The company plans to allocate approximately 6.2 million HKD for pre-project expenses and 5.8 million HKD for future investment opportunities, expected to be fully utilized by June 30, 2025[97]. - Future investment opportunities include sectors such as petrochemicals, mineral resources, and oil logistics[95]. - The group aims to expand its workforce, including hiring project directors, managers, and engineers, to meet business goals[92]. Corporate Governance - The company has adopted a board diversity policy to ensure a balanced approach in selecting candidates based on gender, age, cultural and educational background, professional qualifications, skills, knowledge, and industry experience[132]. - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, providing a diverse perspective aligned with the company's business needs[132]. - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, with specific written terms of reference available on the stock exchange and the company's website[126]. - The board has confirmed compliance with the corporate governance code throughout the fiscal year, with regular reviews to adapt to changing standards[123]. - The company emphasizes maintaining ethical and responsible practices as a core value, with all directors acting with integrity and promoting the desired culture[122]. Risk Management - The company has implemented a risk management policy to address various potential risks, including operational and environmental, social, and governance risks[173]. - The company has conducted a review of its risk management and internal control systems, deeming them effective and sufficient[175]. - The company has taken additional internal control measures to ensure compliance with applicable laws and regulations[174]. Shareholder Communication - The company is committed to effective communication with shareholders and stakeholders, providing accessible information through its website[186]. - The company held its annual general meeting on December 15, 2023, allowing shareholders to communicate directly with the board[187]. - The company has established a communication policy to facilitate effective engagement with shareholders and encourage their participation[186].
TBKS HLDGS(01960) - 2024 - 年度财报