Financial Performance - For the first half of 2025, Heng Hup Holdings Limited reported revenue of RM 725.0 million, a decrease of 16.2% compared to RM 865.2 million in the same period of 2024[8]. - The net profit after tax for the first half of 2025 was RM 7.2 million, a decline of approximately 29.1% from RM 10.1 million in the same period of 2024[11]. - In the first half of 2025, the group reported sales volume of 434,385 tons and revenue of 628,143 thousand MYR, compared to 471,580 tons and revenue of 787,399 thousand MYR in the first half of 2024, indicating a decrease in both sales volume and revenue[18]. - Gross profit slightly decreased from 61.8 million MYR in the first half of 2024 to 61.7 million MYR in the first half of 2025, a reduction of approximately 0.1%, while the gross profit margin improved from 7.1% to 8.5%[19]. - Operating profit decreased to 14,536 thousand MYR from 18,897 thousand MYR, reflecting a decline of 23.5% year-over-year[60]. - Net profit for the period was 7,167 thousand MYR, down 29.0% from 10,114 thousand MYR in the previous year[60]. - Basic and diluted earnings per share were 0.85 sen, compared to 1.15 sen for the same period in 2024, representing a decrease of 26.1%[60]. - The company reported a total comprehensive income of 8,471 thousand MYR for the six months ended June 30, 2025, compared to 11,456 thousand MYR for the same period in 2024[66]. - For the six months ended June 30, 2025, the company reported a profit attributable to owners of the company of 8,471 thousand MYR, a decrease of 26.0% compared to 11,456 thousand MYR for the same period in 2024[91]. Sales and Market Conditions - The sales volume of black scrap metal decreased by approximately 7.9%, from 471,580 tons in the first half of 2024 to 434,385 tons in the first half of 2025[9]. - The average selling price of black scrap metal fell by about 13.4%, from RM 1,670.00 per ton in the first half of 2024 to RM 1,446.00 per ton in the first half of 2025[10]. - Future market conditions are expected to remain challenging due to domestic and global factors affecting the scrap metal industry[11]. - Selected public infrastructure projects under the National Energy Transition Roadmap (NETR) and New Industrial Master Plan (NIMP 2030) are anticipated to support a moderate recovery in scrap metal consumption in the second half of 2025[11]. - The company is focusing on diversifying its product portfolio and regional markets to mitigate risks associated with price and sales fluctuations[12]. Expenses and Cost Management - Distribution and selling expenses increased by approximately 20.9% to 31.5 million MYR in the first half of 2025, up from 26.0 million MYR in the first half of 2024, primarily due to rising fuel prices and increased reliance on third-party logistics services[20]. - Administrative expenses decreased by approximately 5.6% to 15.8 million MYR in the first half of 2025, down from 16.7 million MYR in the first half of 2024, due to ongoing cost optimization measures[21]. - Employee costs and related expenses totaled 17.6 million MYR, an increase of 5.4% from 16.7 million MYR in the previous year[51]. Assets and Liabilities - Total assets as of June 30, 2025, were RM 379.997 million, slightly down from RM 380.346 million as of December 31, 2024[8]. - The total liabilities decreased from RM 145.693 million as of December 31, 2024, to RM 138.177 million as of June 30, 2025[8]. - The company's equity attributable to owners increased to 246,908 thousand MYR from 238,437 thousand MYR, marking a growth of about 3.2%[62]. - The total amount of trade payables and other payables decreased to MYR 50,301 as of June 30, 2025, down 16.5% from MYR 60,391 as of December 31, 2024[101]. Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2025, was (6,218) thousand MYR, compared to a net cash inflow of 25,996 thousand MYR in the same period of 2024[68]. - Cash and cash equivalents decreased to 34,628 thousand MYR from 45,063 thousand MYR, a decline of approximately 23.2%[68]. - The company has a total bank financing of approximately MYR 337.5 million as of June 30, 2025, unchanged from December 31, 2024[105]. - The company’s borrowings increased to 80,427 thousand MYR from 76,925 thousand MYR, reflecting a rise of approximately 4.9%[64]. Trade Receivables and Credit Risk - The expected credit loss rate for trade receivables as of June 30, 2025, is 2.4%, up from 1.7% as of December 31, 2024[36]. - The provision for trade receivables in the first half of 2025 is MYR 3.87 million, compared to MYR 2.92 million as of December 31, 2024[36]. - As of June 30, 2025, 84% of the total trade receivables are concentrated from black scrap metal customers, an increase from 66% as of December 31, 2024[37]. - The company assesses credit risk by only transacting with reputable banks, which have a near-zero expected credit loss on cash[36]. Shareholder Information - The total issued shares as of June 30, 2025, is 1,000,000,000 ordinary shares[39]. - Major shareholders, including the Sia brothers, collectively hold 681,680,000 shares, representing 68.17% of the company[39]. - 5S Holdings, a related entity, holds 441,680,000 shares, accounting for 44.17% of the company[43]. Other Information - The company has not written off any trade receivables in the first half of 2025 or the first half of 2024[37]. - The company did not declare any interim dividends for the six months ended June 30, 2025, consistent with the previous year[55]. - There were no significant events affecting the group that required disclosure after June 30, 2025, up to the report date[56]. - The company has not engaged in any purchase, sale, or redemption of its listed securities during the six-month period[53].
兴合控股(01891) - 2025 - 中期财报