Financial Performance - The group recorded total revenue of RM 191.1 million, a decrease of 11.9% compared to the previous year[9]. - The decline in revenue was primarily due to the sale of the Chinese production unit and a reduction in large projects in the energy efficiency segment[9]. - Despite the revenue drop, the group achieved a total profit of RM 20.1 million, up from RM 16.8 million in the previous year, indicating improved profitability[9]. - The overall profitability was impacted by a RM 7.9 million impairment loss related to the overdue consideration from the sale of the Chinese production unit[9]. - The group's overall profit decreased from RM 12.5 million in 2023 to RM 9.0 million in 2024[9]. - The production segment's revenue for the fiscal year was approximately 92.4 million MYR, a decrease of about 3.7 million MYR or 3.9% compared to the previous year[16]. - The energy efficiency segment's revenue was approximately 98.6 million MYR, a decrease of 21.9 million MYR or 18.2% compared to the previous year[18]. - The gross profit for the fiscal year was approximately 52.7 million MYR, a decrease of about 2.1 million MYR or 3.8% compared to the previous year[22]. - The gross profit margin increased from 25.3% in the previous year to 27.6% in the current fiscal year[22]. - The profit for the fiscal year was 9.0 million MYR, a decrease of approximately 3.5 million MYR or 28.0% compared to 12.5 million MYR in the previous year[26]. Cost Management - The company implemented cost-cutting measures and continuous improvement methods (Kaizen) to manage costs and operating expenses more effectively[9]. - The company plans to optimize capital expenditures and control variable costs while maintaining profitability in response to ongoing trade wars and business risks[12]. - Administrative expenses for the fiscal year were 30.4 million MYR, a decrease of 1.8 million MYR or 5.6% compared to the previous year[25]. - Sales and service costs were approximately 138.4 million MYR, a decrease of about 23.6 million MYR or 14.6% compared to the previous year[21]. Market Challenges - The group faced challenges from supply chain disruptions due to trade wars, ongoing inflation, and foreign exchange fluctuations[8]. - The shortage of high-tech talent hindered business growth in Singapore[8]. - The global economic outlook remains uncertain due to ongoing inflation, interest rate fluctuations, and geopolitical conflicts, impacting manufacturing costs and supply chains[43]. Strategic Initiatives - The company is implementing strategies to reduce risks and promote sustainable growth, including market repositioning, pricing strategies, and enhancing production efficiency through automation and digitization[43]. - The energy efficiency sector is expected to continue expanding, driven by fluctuating global energy prices and stricter environmental policies, with the company strengthening its position in this market[44]. - The group maintained a cautious strategy by strictly controlling capital expenditures and adopting other risk mitigation measures[8]. Shareholder and Investment Activities - The company proposed a final dividend of 0.01 HKD per share for the year ending December 31, 2024, compared to no dividend in the previous year[36]. - The company has entered into a conditional sale agreement to purchase 50 multi-storey units in Malaysia for a total consideration of MYR 61,982,000 (approximately HKD 109,689,545.40), with part of the payment made in cash and the rest through the issuance of new shares[47]. - The deadline for the completion of the purchase agreement has been extended to June 30, 2025, or a longer period as mutually agreed, pending approval from independent shareholders[48]. - A loan agreement was established with PRG Holdings for a principal amount of MYR 5 million, originally due for repayment on November 10, 2024[52]. - A loan extension agreement was signed on November 11, 2024, maintaining all other terms and conditions of the original loan agreement[53]. - The loan repayment due date has been extended by two years from November 11, 2024, to November 10, 2026, with an annual interest rate of 6% applicable during the extension period[55]. Governance and Compliance - The company has complied with all provisions of the corporate governance code during the fiscal year[162]. - The board consists of four independent non-executive directors, with Ho Ming Hon serving as the chairman of the audit committee[149]. - The company has established a risk management committee consisting of three independent non-executive directors and one executive director to monitor major risks and ensure effective risk management procedures[135]. - The company has a whistleblowing policy to identify and report misconduct, enhancing workplace communication and ethical standards[168]. - The company has adopted strict trading standards for directors, confirming full compliance with these standards during the fiscal year[169]. Employee Relations and Diversity - The group emphasizes the importance of employee relations and is committed to providing a fair and diverse work environment, regularly reviewing compensation and benefits policies[119]. - The company has achieved a gender diversity ratio of approximately 69.8% male to 30.2% female employees as of December 31, 2024, compared to 69.2% male to 30.8% female in the previous year[199]. - The board has set measurable goals for diversity, including ensuring at least one member has accounting qualifications and that at least 50% hold a bachelor's degree or higher[198]. - The company aims to improve the female representation at all levels to achieve gender equality in senior management and board positions[199]. Risk Management - The company faces various risks including operational, market, liquidity, credit, and regulatory risks, with a risk management policy in place to identify and manage these risks[111]. - The group generates a substantial portion of its revenue in USD, and fluctuations in exchange rates may lead to foreign exchange gains or losses due to the revaluation of assets and liabilities denominated in other currencies[116]. - The company is actively monitoring foreign exchange trends and may consider hedging measures to mitigate risks, including financial instruments and potential price increases for products[42]. Board and Management - The board of directors includes both executive and independent non-executive members, with specific terms of service and compliance with independence guidelines[127]. - The company’s financial management is overseen by the Chief Financial Officer, who has over 20 years of experience in financial management and auditing[86]. - The company has established four committees: audit, remuneration, nomination, and risk management, to oversee specific aspects of its operations[189]. - The company is responsible for arranging suitable training for all directors to ensure they continue to contribute effectively to the board[187].
飞霓控股(08480) - 2024 - 年度财报