Financial Performance - The total revenue for the fiscal year ending December 31, 2024, was approximately 122.5 million MYR, representing a slight increase of about 4.0% from 117.8 million MYR in the previous fiscal year[13]. - The distribution segment contributed 94.8 million MYR (77.3% of total revenue), while the manufacturing segment generated 27.8 million MYR (22.7% of total revenue) for the fiscal year 2024[19]. - The net profit after tax decreased to approximately 7.7 million MYR, down about 30.0% from 11.0 million MYR in the previous fiscal year, primarily due to additional project expenses incurred by a subsidiary[13]. - The manufacturing revenue decreased by approximately 19.0% or about 6.5 million MYR, from approximately 34.3 million MYR in the previous fiscal year to about 27.8 million MYR in the current fiscal year, attributed to intense price competition in the market[20]. - Distribution revenue increased from approximately 83.5 million MYR to about 94.8 million MYR, representing a growth of approximately 13.5% or about 11.3 million MYR[21]. - Gross profit slightly decreased from approximately 26.1 million MYR to about 25.8 million MYR, a decline of about 1.1%[23]. - Other income and gains rose from approximately 3.7 million MYR to about 5.3 million MYR, primarily due to increased bank interest income and foreign exchange gains[24]. - Administrative and other operating expenses increased by approximately 3.3 million MYR or 25.4% to about 16.3 million MYR, mainly due to additional project expenses from investments in Wenchang, Hainan[25]. - Profit for the fiscal year decreased from approximately 11.0 million MYR to about 7.7 million MYR, with earnings per share dropping from approximately 2.42 MYR to about 1.76 MYR[28]. - The effective tax rate increased from approximately 26.7% to about 33.0% due to an increase in non-deductible expenses[27]. Economic Outlook - The company anticipates continued economic challenges in 2025, including a sluggish outlook for major trading partners and ongoing geopolitical conflicts[15]. - The company is committed to monitoring global economic developments while maintaining a cautiously optimistic outlook[15]. - The company will maintain a vigilant cost management approach to mitigate adverse impacts while seeking domestic and international opportunities[15]. Corporate Governance - The company has a structured governance framework with committees for remuneration and audit, ensuring compliance and strategic oversight[63]. - The board consists of six members, with three being female, achieving a gender ratio of approximately 1.1:1[115]. - The board has adopted a nomination policy to ensure a balanced composition of skills, experience, and diversity[119]. - The company has established mechanisms to ensure the board receives independent opinions and advice, which are reviewed annually[127]. - The board has achieved all measurable targets set for diversity in the current financial year[118]. - The company has adopted a zero-tolerance policy towards bribery and corruption, aligning with the Malaysian Anti-Corruption Commission (Amendment) Act 2018[128]. - The board held a total of four meetings during the fiscal year, with all directors attending 100% of the meetings[135]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of its operations[141]. Environmental, Social, and Governance (ESG) Initiatives - The company reported a commitment to sustainable development through the establishment of an ESG working group to coordinate and implement sustainability initiatives[71]. - The ESG report indicates no legal or regulatory violations reported in Malaysia, the company's operational region[71]. - The company has maintained a consistent reporting scope and framework in the ESG report to ensure meaningful comparisons with the previous year[75]. - The company has a strong focus on stakeholder engagement, utilizing various communication channels to address their concerns and expectations[76]. - The company has adopted appropriate risk management policies to mitigate potential financial or reputational damage related to ESG performance[71]. - Total greenhouse gas emissions for the fiscal year 2024 were 529.0 tons of CO2 equivalent, slightly up from 522.6 tons in 2023, with Scope 1 emissions decreasing from 229.9 tons to 201.3 tons[78]. - The company achieved a reduction in nitrogen oxides (NOx) emissions from 0.9 kg in 2023 to 0.8 kg in 2024, and sulfur oxides (SOx) emissions decreased from 4.5 kg to 3.9 kg[77]. - The company has implemented waste management principles focusing on reduction, reuse, and recycling, and encourages employees to use reusable containers[82]. - There were no significant environmental violations reported in the fiscal year 2024, with no fines or penalties from the Malaysian Ministry of Environment[87]. Employee and Training Initiatives - The company has a total of 52 full-time employees, with 48% male and 52% female representation[94]. - Employee turnover rate is 16.0% for those under 30 years old, 25.9% for those aged 30 to 50, and 5.8% for those over 50[93]. - In the fiscal year 2024, a total of 37 employees participated in training, averaging 3 hours of training per employee[98]. - The percentage of trained employees is 46% male and 54% female, with 29% from senior management and 71% from middle management[99]. - Average training hours per employee are 17.0 hours for males and 20.0 hours for females[100]. Risk Management - The group has identified key risks including animal disease outbreaks and fluctuations in product demand and market prices, which could adversely affect financial performance[40]. - The group has implemented risk management policies to address various potential risks associated with its business operations[154]. - The board has confirmed the effectiveness and sufficiency of the group's risk management and internal control systems, which are designed to manage rather than eliminate risks[157]. Shareholder and Financial Policies - The company declared a special dividend of approximately 29.5 million MYR, equivalent to 0.11 HKD per share, to be paid on January 15, 2025[31]. - The company does not recommend a final dividend for the fiscal year, consistent with the previous year where no dividend was declared[174]. - The company has adopted a share option scheme to incentivize employees and other contributors, allowing the board to grant options at a price of HKD 1.00[182]. - The maximum number of shares that may be issued under the share option scheme is capped at 30% of the total issued shares at any time[183]. - The company will suspend share transfer registration from June 20 to June 25, 2025, to determine eligibility for the upcoming annual general meeting[175].
利特米(01936) - 2024 - 年度财报