Financial Performance - For the six months ended November 30, 2024, the Group reported revenue of RM 15,494,000, an increase of 1.22% compared to RM 15,308,000 in the same period of 2023[14]. - Gross profit for the same period was RM 4,311,000, reflecting a growth of 2.91% from RM 4,189,000 in the previous year[15]. - Profit before taxation decreased slightly to RM 1,353,000, down 5.25% from RM 1,428,000 in the prior year[15]. - Profit for the period from continuing operations was RM 747,000, a marginal increase of 4.05% compared to RM 718,000 in the previous year[15]. - The Group's total profit for the period was RM 722,000, an increase of 25.35% compared to RM 576,000 in the same period of 2023[15]. - For the six months ended November 30, 2024, total comprehensive income was RM 254,000, a decrease of 62.2% compared to RM 672,000 for the same period in 2023[16]. - Basic earnings per share from continuing operations was RM 4.77 cents, down 10.2% from RM 5.31 cents in the previous year[16]. - The company reported a profit for the period of RM 722,000, an increase from RM 576,000 in the previous period[21]. Operational Efficiency - The Company continues to focus on enhancing operational efficiency and exploring new market opportunities to drive future growth[13]. - Administrative expenses decreased to RM 2,516,000, down 8.27% from RM 2,743,000 in the previous year[15]. - Finance costs were reduced to RM 46,000, down 33.33% from RM 69,000 in the previous year[15]. - For the six months ended November 30, 2024, net cash used in operating activities was RM 1,141,000, a decrease from RM 1,346,000 in the same period of 2023, indicating improved operational efficiency[23]. - The company’s cash flow from operating activities remains negative, indicating ongoing challenges in generating cash from core operations[23]. Assets and Liabilities - Non-current assets increased to RM 9,934,000 as of November 30, 2024, up 24.1% from RM 8,006,000 as of May 31, 2024[17]. - Current assets decreased to RM 40,195,000 from RM 42,601,000, reflecting a decline of 5.7%[18]. - Total equity increased to RM 37,789,000 as of November 30, 2024, compared to RM 36,298,000 as of May 31, 2024, representing a growth of 4.1%[18]. - The total non-current liabilities rose to RM 485,000, compared to RM 95,000 in the previous period, indicating a significant increase[18]. - The net current assets remained stable at RM 28,340,000, slightly down from RM 28,387,000[18]. Revenue Segmentation - Segment revenue from manufacturing and trading of precast concrete junction boxes was RM 14,515,000, while revenue from other building materials and services was RM 979,000[45]. - Revenue from the trading of accessories and pipes and mobile crane rental services surged by approximately 43.97%, rising from RM 680,000 to RM 979,000 during the same period[116][118]. - The revenue from the manufacturing and trading of precast concrete junction boxes slightly decreased by approximately 0.77%, from RM 14.6 million to RM 14.5 million, indicating stable demand in Malaysia[113][115]. Cash Flow and Investments - Cash generated from investing activities showed a significant decline, with a net cash outflow of RM 1,930,000 compared to a net inflow of RM 12,000 in the previous year, primarily due to increased purchases of property, plant, and equipment totaling RM 2,479,000[24]. - The total cash and cash equivalents at the end of the period were RM 23,432,000, down from RM 25,951,000 in the previous year, primarily due to a net decrease in cash and cash equivalents of RM 2,873,000[24]. - The company completed the acquisition of 100% equity of the target company for HK$5.5 million on December 2024[134]. - The company entered into a Sale and Purchase Agreement for land use rights at a consideration of approximately RM 7.95 million, with RM 4.68 million already paid as a deposit[142][145]. Share Capital and Equity - The company issued subscription shares amounting to RM 1,237,000 during the period, contributing to the increase in share capital[21]. - The share capital attributable to owners increased to approximately RM 7.3 million as of November 30, 2024, from RM 6.0 million on May 31, 2024[141][144]. - The weighted average number of ordinary shares increased to 15,666,591 for the six months ended November 30, 2024, compared to 13,518,053 in the previous year, representing an increase of approximately 15.9%[68]. Risks and Challenges - The Group's income and profit are significantly denominated in Malaysian Ringgit (RM), exposing it to foreign currency risk[181]. - The Group faces operational risks due to fluctuations in raw material prices, which may adversely impact financial results[191]. - The Group's cash inflow is dependent on prompt settlements from customers, exposing it to credit and liquidity risks[192]. - The Group's ability to pay dividends may be affected by foreign exchange controls and fluctuations in currency values[181]. Corporate Governance - The Board did not recommend the payment of a dividend for the six months ended 30 November 2024, consistent with the previous year[73]. - The company is committed to ensuring accurate reporting and compliance with the Securities and Futures Ordinance (SFO)[177]. - No other interests or short positions in shares or debentures were reported by directors and chief executives as of November 30, 2024[168].
万顺瑞强集团(08427) - 2025 - 中期财报