Financial Performance - The group's revenue increased from approximately MYR 329.3 million for the year ended June 30, 2024, to approximately MYR 427.0 million for the year ended June 30, 2025, representing a growth of about 29.6%[13]. - The net profit attributable to the owners of the company decreased to approximately MYR 1.3 million for the year ended June 30, 2025, down from approximately MYR 3.0 million for the year ended June 30, 2024, indicating a decline of about 56.7%[13]. - Gross profit increased by approximately 9.4 million Ringgit or 113.3% to about 17.7 million Ringgit for the year ending June 30, 2025, compared to approximately 8.3 million Ringgit for the year ending June 30, 2024[32]. - Overall gross margin improved from approximately 2.5% for the year ending June 30, 2024, to about 4.1% for the year ending June 30, 2025[32]. - Other income decreased from approximately 5.8 million Ringgit for the year ending June 30, 2024, to about 5.7 million Ringgit for the year ending June 30, 2025, primarily due to a reduction in income from subcontractors and suppliers[33]. - Net other income for the year ending June 30, 2025, was approximately 1.5 million Ringgit, compared to about 0.5 million Ringgit for the year ending June 30, 2024[34]. - General and administrative expenses increased by approximately 3.5 million Ringgit or 21.6% to about 19.7 million Ringgit for the year ending June 30, 2025[37]. - Financial costs decreased from approximately 1.0 million Ringgit for the year ending June 30, 2024, to about 0.6 million Ringgit for the year ending June 30, 2025[38]. - Income tax expense increased to approximately 1.7 million Ringgit for the year ending June 30, 2025, from about 0.8 million Ringgit for the year ending June 30, 2024[39]. - Cash and cash equivalents decreased to approximately 71.5 million Ringgit as of June 30, 2025, from 94.1 million Ringgit as of June 30, 2024[42]. - The current ratio decreased from approximately 1.7 times as of June 30, 2024, to about 1.6 times as of June 30, 2025, primarily due to a significant increase in contract liabilities[43]. Revenue Breakdown - Revenue from offshore construction services accounted for approximately 89.1% of total revenue, increasing by about 71.7 million MYR or 23.2% from approximately 308.8 million MYR to about 380.5 million MYR[28]. - Revenue from reclamation and related works increased by approximately 82.6 million MYR or 307.1% from approximately 26.9 million MYR to about 109.5 million MYR, primarily due to new contracts awarded since June 30, 2024[28]. - Revenue from marine transportation decreased by approximately 10.9 million MYR or 3.9% from about 281.9 million MYR to about 271.0 million MYR, mainly due to a decrease in sand transportation volume from Singapore contracts[29]. - Revenue from building and infrastructure services increased by approximately 28.3 million MYR or 155.5% from about 18.2 million MYR to about 46.5 million MYR, driven by new contracts executed since June 2024[30]. - Revenue from the largest and top five customers accounted for approximately 63.5% and 99.8% of the group's total revenue for the year ending June 30, 2025[153]. Contracts and Tenders - The group completed three offshore construction contracts with a total original contract value of approximately MYR 53.4 million and one building and infrastructure contract valued at approximately MYR 18.3 million during the fiscal year[19]. - As of June 30, 2025, the group had three ongoing offshore construction contracts with a total original contract value of approximately MYR 1,312.1 million and three ongoing building and infrastructure contracts valued at approximately MYR 152.4 million[19]. - The group submitted three tenders and two quotations with an expected total contract value of approximately 176.9 million MYR as of June 30, 2024[20]. - The group has submitted two quotations for offshore construction contracts and seven tenders and two quotations for building and infrastructure contracts with an original total contract value of approximately 717.3 million MYR for the year ending June 30, 2025[20]. - The group is focused on executing existing contracts, including a reclamation project in Johor with a total contract value of approximately MYR 0.6 million[66]. - The group has been selected as a shortlisted bidder for a large solar photovoltaic power plant project in Johor, with a capacity of 99.99 MW[69]. Market Outlook and Challenges - The group remains optimistic about the construction industry in Malaysia and Singapore, driven by the recent signing of the Johor-Singapore Economic Zone agreement and the anticipated launch of the Johor-Singapore MRT system in early 2027[14]. - The group faces challenges such as labor shortages and inflationary pressures that negatively impact profitability[14]. - The Johor-Singapore Economic Zone agreement aims to promote trade and strengthen economic ties, providing opportunities for growth in the construction sector[67]. - The group is optimistic about the construction industry in Malaysia and Singapore, despite facing competition and inflationary pressures[67]. Corporate Governance and Management - The group aims to enhance shareholder returns through high standards of corporate governance and transparency[15]. - The company emphasizes corporate governance through the appointment of experienced independent directors[87][89][91]. - The company has independent non-executive directors overseeing the audit, remuneration, and nomination committees, ensuring independent judgment and governance[87][89][91]. - The company has a strong focus on risk management and compliance through its audit and risk management committees[89][91]. - The board has received written annual confirmations regarding the independence of all independent non-executive directors[157]. - The company has established a remuneration policy for directors based on the group's performance and the directors' individual contributions[162]. Employee and Community Engagement - The total number of full-time employees increased from 64 to 68 from June 30, 2024, to June 30, 2025, indicating business expansion efforts[64]. - The group has implemented policies to ensure a safe and healthy work environment for employees and subcontractors[112]. - The company is actively involved in community service and has members participating in various advisory committees[92]. - The company made charitable contributions of approximately 0.4 million Ringgit during the fiscal year ending June 30, 2025, compared to 0.5 million Ringgit in 2024[152]. Risk Management - The group faces interest rate risk primarily from bank cash and loans, with cash flow interest rate risk concentrated on fluctuations in the Malaysian base lending rate[58]. - The group has no foreign exchange hedging policy but closely monitors foreign exchange risks, maintaining them at acceptable levels[59]. - Credit risk and liquidity may increase due to delays in client payments, impacting the group's financial condition and operational performance[105]. - Environmental and climate-related risks may affect the group's assets and operations, with extreme weather events expected to become more frequent[107]. - The group emphasizes environmental compliance and sustainability, aiming to reduce urban waste and energy usage while promoting recycling[108]. Shareholder Information - The board does not recommend any final dividend for the year ending June 30, 2025, consistent with the previous year[114]. - The board will continue to review the dividend policy and retains the right to update or modify it at any time[118]. - As of June 30, 2025, the reserves available for distribution to shareholders amount to approximately 114.0 million Ringgit[146]. - The company has not purchased, sold, or redeemed any of its listed securities during the fiscal year ending June 30, 2025[141]. - The company does not have any provisions regarding preemptive rights in its amended and restated articles of association[142]. Stock Option Plan - The group has established a stock option plan to incentivize employees and align their interests with the company's performance[126]. - The stock option plan allows the board to grant options to eligible participants for a period of ten years[128]. - The subscription price for shares under the stock option plan will be determined by the board but cannot be lower than the higher of the closing price on the specific date or the average closing price over the previous five trading days[129]. - The company has a maximum share limit for stock options, which cannot exceed 10% of the issued share capital at the time of listing, equating to 50,000,000 shares[130]. - The stock option plan has a remaining term of approximately three years and six months, expiring on April 10, 2029[137]. - The company has not granted, exercised, lapsed, or cancelled any stock options under the stock option plan since its adoption[138]. Ownership and Control - The total shares held by directors and senior management in the company amounted to 181,816,500 shares, representing approximately 36.36% of the issued share capital[169]. - The combined control of the company by Wong and Ngooi is approximately 71.10% of the total issued share capital[171]. - The non-competition agreement signed by the controlling shareholders ensures they will not engage in any competing business[177]. - The beneficial ownership of JBB Jade Investment Limited is entirely held by Wong, while JBB Berlian Investment Limited is fully owned by Ngooi[175][176]. - The company has confirmed compliance with the non-competition agreement from the listing date to the report date[179].
JBB Builders(01903) - 2025 - 年度财报