Revenue and Financial Performance - The Group experienced a slight revenue increase of 2.85% for the year ended May 31, 2025, compared to the previous year[18]. - For the year ended May 31, 2025, the Group's revenue increased by approximately 2.85%, from RM30.7 million to RM31.6 million, primarily due to growth in other building materials and services[29]. - Revenue from the manufacturing and trading of precast concrete junction boxes increased by approximately 0.62%, from RM29.3 million to RM29.5 million, indicating steady performance in this segment[34]. - The revenue from other building materials and services surged by approximately 26.26%, from RM1.4 million to RM1.8 million, driven by increased transportation income linked to larger precast junction box sales[35]. - The Group's gross profit rose from approximately RM8.6 million to RM9.4 million, attributed to a focus on higher-margin precast junction boxes and better expense control[40]. - The Group recorded a net profit of approximately RM82,000 for the year ended 31 May 2025, a decrease from RM108,000 in 2024[47]. Expenses and Cost Management - Administrative expenses decreased by approximately RM0.4 million or 6.69%, from RM5.9 million to RM5.5 million, due to significant efforts in expense management[41]. - Selling and distribution expenses increased by approximately RM0.5 million or 36.95%, from RM1.4 million to RM1.9 million, mainly due to higher bonuses, commissions, and expenses from new business initiatives[42]. - The total cost of sales slightly increased from RM22.1 million to RM22.2 million, representing an increase of approximately 0.21%[38]. - The total cost of sales for precast concrete junction boxes decreased from RM21.0 million to RM20.7 million, reflecting a decrease of approximately 1.61%[39]. Business Strategy and Operations - Following the acquisition of Shenzhen Wanshunfu Smart Life Service Co., Ltd., the Group entered the e-commerce platform business[18]. - The sourcing services and sale of health supplement products were discontinued due to a change in business strategy[18]. - The Group anticipates a tough operating environment in the upcoming financial year due to current economic conditions[19]. - Labour shortages and rising material costs remain challenges for the Group[19]. - The management is committed to seeking business opportunities that would generate long-term returns for shareholders[19]. - The Group remains cautiously optimistic about overall business prospects despite challenges such as labor shortages and rising production costs[30]. Financial Position and Liquidity - As of 31 May 2025, the Group's cash and cash equivalents were approximately RM22.7 million, down from RM28.2 million as of 31 May 2024[53]. - The Group had trade receivables amounting to approximately RM5.4 million as of 31 May 2025, with a trade receivables turnover of approximately 81 days[52]. - The current ratio as of 31 May 2025 was 2.71, compared to 3.00 as of 31 May 2024[54]. - The Group had no borrowings as of 31 May 2025, maintaining a gearing ratio of Nil[54]. - The Group's financial position is sound, with sufficient liquidity to meet funding requirements[55]. Acquisitions and Investments - On 16 August 2024, the Company entered into an agreement to acquire the entire equity interest of Shenzhen Wanshunfu for HK$5.5 million[67]. - The company agreed to purchase 1% of the registered capital of Shenzhen Wanshun eCar Cloud Tech & Information Co., Ltd. for a total consideration of HK$34.874 million, to be settled by issuing 1,215,630 new shares[91]. - The company plans to utilize HK$29.6 million from the net proceeds, with HK$17.4 million already utilized and HK$15.9 million remaining as of the report date[81]. - The expansion of production capacity includes HK$7.0 million for the Selangor Plant, HK$7.3 million for the new Kulaijaya Plant, and HK$2.6 million for recruiting new staff[81]. - The acquisition of land in Southern Malaysia accounted for HK$8.4 million, fully utilized for business expansion[81]. Shareholder and Capital Structure - The Group's capital structure remained unchanged during the year, with share capital amounting to approximately RM7.3 million as of 31 May 2025[59]. - The Board does not recommend the payment of a final dividend for the year ended 31 May 2025, consistent with the previous year where no dividend was paid[128]. - The Company changed its name from "SK Target Group Limited" to "WS-SK Target Group Limited" on 10 October 2024, with the new stock short name effective from 11 November 2024[119]. - The Group's reserve available for distribution is RM21.3 million, slightly up from RM21.2 million in 2024[138]. Corporate Governance and Compliance - The Group has complied with all relevant laws and regulations that significantly impact its operations during the year[115]. - There were no purchases, sales, or redemptions of the Company's listed securities for the year ended 31 May 2025[140]. - The Company has no provisions for pre-emptive rights under its articles of association or Cayman Islands law[139]. - The company has no material contingent liabilities as of 31 May 2024 and 31 May 2025[83]. Employee and Stakeholder Engagement - The company aims to attract and retain personnel through the Share Option Scheme, providing additional incentives to employees[181]. - The company has a long-term incentive scheme that includes a share option plan for employee retention and motivation[84]. - The Group recognizes employees, customers, and suppliers as key stakeholders and aims for corporate sustainability through engagement and quality service[141]. Share Option Scheme - The Share Option Scheme allows for options to be granted for up to 10% of the total number of shares in issue, which is 62,000,000 shares[183]. - The Share Option Scheme was adopted on June 27, 2017, and is valid for ten years[182]. - As of May 31, 2025, no share options were granted, exercised, lapsed, or cancelled under the Share Option Scheme[190]. - The total number of shares issuable to each participant under the Share Option Scheme in any twelve-month period shall not exceed 1% of the shares in issue[187].
万顺瑞强集团(08427) - 2025 - 年度财报