Financial Performance - The company reported a revenue of 15,494 thousand HKD for the six months ending November 30, 2024, compared to 15,308 thousand HKD for the same period in 2023, representing an increase of approximately 1.22%[6]. - Gross profit for the period was 4,311 thousand HKD, up from 4,189 thousand HKD year-over-year, indicating a growth of about 2.92%[6]. - The net profit from continuing operations was 747 thousand HKD, compared to 718 thousand HKD in the previous year, reflecting an increase of approximately 4.04%[6]. - The total comprehensive income for the period was 254 thousand HKD, down from 672 thousand HKD in the same period last year, showing a decline of about 62.25%[9]. - Basic earnings per share from continuing operations was 4.77 cents, compared to 5.31 cents in the previous year, a decrease of approximately 10.18%[9]. - The company incurred a loss of 25 thousand HKD from discontinued operations, compared to a loss of 142 thousand HKD in the previous year, indicating an improvement[6]. - The company reported other income of 506 thousand HKD, down from 609 thousand HKD year-over-year, a decrease of about 16.87%[6]. - Administrative expenses were 2,516 thousand HKD, a decrease from 2,743 thousand HKD in the previous year, reflecting a reduction of approximately 8.27%[6]. - The company experienced a foreign exchange loss of 468 thousand HKD from overseas operations during the period[9]. Assets and Liabilities - Total assets minus current liabilities increased to 38,274 million Ringgit as of November 30, 2024, compared to 36,393 million Ringgit on May 31, 2024[12]. - Non-current liabilities totaled 485 million Ringgit, with lease liabilities accounting for 390 million Ringgit[12]. - Net assets rose to 37,789 million Ringgit from 36,298 million Ringgit[12]. - Current assets reached 42,601 million Ringgit, up from 40,195 million Ringgit[11]. - Cash and cash equivalents decreased to 5,312 million Ringgit from 7,142 million Ringgit[11]. - Inventory increased to 2,072 million Ringgit from 1,800 million Ringgit[11]. - Trade receivables and prepayments amounted to 12,485 million Ringgit, compared to 13,417 million Ringgit previously[11]. - Total equity increased to 37,789 million Ringgit from 36,298 million Ringgit[12]. - Current liabilities decreased to 14,214 million Ringgit from 11,855 million Ringgit[11]. - The company reported a total of 9,934 million Ringgit in non-current assets, up from 8,006 million Ringgit[11]. Cash Flow and Financing - The company reported a net cash outflow from operating activities of RM 1.141 million for the six months ended November 30, 2024, compared to RM 1.346 million in the same period last year[15]. - The company raised RM 605 million through the issuance of new ordinary shares as of November 30, 2024, compared to RM 1,237 million in the previous year[15]. - The company's total liabilities increased to RM 37.789 million as of November 30, 2024, compared to RM 36.452 million in the previous year, reflecting a rise of approximately 3.7%[14]. - The company recorded a foreign exchange loss of RM 468 million for the six months ended November 30, 2024, compared to a gain of RM 96 million in the previous year[14]. - The company's total equity as of November 30, 2024, was RM 36.298 million, a decrease from RM 36.452 million in the previous year, indicating a decline of approximately 0.4%[14]. Revenue Breakdown - For the six months ending November 30, 2024, the group reported total revenue of 15,494 thousand Ringgit, with 14,515 thousand Ringgit from manufacturing and trading, and 979 thousand Ringgit from other building materials and services[27]. - The company’s total revenue from sales of goods was RM 137 million for the six months ended November 30, 2024, compared to RM 158 million in the previous year, indicating a decrease of approximately 13.3%[15]. - Revenue from the manufacturing and trading of precast concrete junction boxes slightly decreased by about 0.77%, from approximately 14.6 million MYR to about 14.5 million MYR during the same periods, indicating strong and stable demand in Malaysia[56]. - Revenue from the parts and pipeline trading, as well as mobile crane rental and ancillary services, increased by approximately 43.97% from about 680,000 MYR for the six months ended November 30, 2023, to about 979,000 MYR for the six months ending November 30, 2024[57]. Operational Highlights - The company is focused on expanding its market presence and enhancing its product offerings in the upcoming quarters[6]. - The company has been a registered supplier for major telecommunications companies since 2008, including Celcom Axiata Berhad and Telekom Malaysia, and has been a registered supplier for Tenaga National Bhd since 2012[53]. - The company plans to diversify its existing business portfolio and seek potential investment opportunities to enhance shareholder value[54]. - The company is involved in the manufacturing and sales of precast concrete junction boxes used for telecommunications and electrical infrastructure upgrades and expansions in Malaysia[52]. - The company has entered into a non-binding memorandum of understanding to acquire equity in Wan Shun New Energy Automotive Technology (Wuhan) Co., Ltd.[50]. Shareholder Information - The company’s director, Loh Swee Keong, holds 2,982,750 shares, representing 18.24% of the issued share capital as of November 30, 2024[76]. - Major shareholders include Merchant World Investments Limited and Woon Sow Sum, each holding 18.24% of the company[77]. - Li Mingfeng holds 16.67% of the company's shares, while Greater Elite Holdings Limited, controlled by Loh Feng Yuan, holds 14.38%[77]. Corporate Governance - The company believes that the dual role of the Chairman and CEO is in the best interest of the group, despite deviations from corporate governance guidelines[90]. - The company has adopted a code of conduct for directors' securities transactions, confirming compliance with the relevant trading rules as of November 30, 2024[99]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ended November 30, 2024, and believes they comply with applicable standards and GEM listing rules[103]. Risks and Challenges - The company faces operational risks related to competition and overall economic conditions affecting construction projects[85]. - The group faces potential adverse impacts on financial performance due to fluctuations in the prices of key raw materials[86]. - The group relies on cash inflows from customers to meet payment obligations to suppliers, facing credit and liquidity risks[87]. - The company will closely monitor foreign currency risks, particularly fluctuations in the Malaysian Ringgit, which could impact financial performance[81].
万顺瑞强集团(08427) - 2025 - 中期业绩