Revenue Performance - The group's revenue decreased by approximately 66.2% from RM 288.1 million in the fiscal year ending June 30, 2024, to RM 97.4 million in the current fiscal year[8]. - Revenue from civil and structural engineering in Malaysia increased from RM 56.0 million to RM 81.2 million, with a gross profit rising from RM 3.6 million to RM 5.9 million, maintaining a gross margin of approximately 7.3%[10]. - Revenue from civil and structural engineering in China dropped significantly from RM 52.5 million to RM 15.8 million, with a gross profit decline from RM 0.8 million to RM 0.1 million, resulting in a gross margin of approximately 0.4%[13]. - Revenue from oil and related products trade in China decreased significantly by 99.8% from approximately RM 179.6 million in the fiscal year ending June 30, 2024, to about RM 0.4 million in the current fiscal year[14]. - The revenue from civil engineering projects rose by approximately 54.0% from RM 51.5 million in the fiscal year ending June 30, 2024, to RM 79.3 million in the current fiscal year[24]. - The revenue from civil and structural engineering in China decreased by approximately 69.9% to about MYR 15.8 million for the fiscal year, down from approximately MYR 52.5 million[28]. - Revenue from oil and related product trading in China dropped significantly by 99.8% to approximately MYR 0.4 million for the fiscal year, down from approximately MYR 179.6 million[32]. - In Malaysia, revenue from civil and structural engineering increased by approximately 45.0% to about MYR 81.2 million for the fiscal year, up from approximately MYR 56.0 million[34]. Financial Performance - The company recorded a loss attributable to shareholders of approximately RM 28.3 million in the current fiscal year, an improvement from a loss of RM 32.7 million in the previous fiscal year[15]. - The net impairment loss on trade receivables, contract assets, and other receivables decreased significantly from approximately RM 22.1 million in the fiscal year ending June 30, 2024, to RM 17.4 million in the current fiscal year[15]. - The group reported a net impairment loss of expected credit losses of approximately RM 17.4 million for the fiscal year, compared to RM 22.1 million in 2024[49]. - The income tax expense for the fiscal year was approximately RM 447,000, an increase from RM 77,000 in 2024, primarily due to increased revenue and profits from civil and structural engineering in Malaysia[52]. - The current ratio as of June 30, 2025, was 1.9, down from 2.3 in 2024, indicating a decrease in liquidity[54]. - The group’s total equity attributable to owners was approximately RM 80.7 million, down from RM 110.9 million in 2024[62]. - The group did not recommend a final dividend for the fiscal year, consistent with the previous year[58]. Strategic Focus and Challenges - The economic environment remains challenging due to geopolitical uncertainties, inflation pressures, and a weak property market in China, impacting the group's overall performance[7]. - The group is focusing on completing ongoing projects in China and prioritizing the recovery of trade receivables to enhance liquidity and financial stability[12]. - The group is adopting strategic pricing measures to maintain customer relationships and market share amid increasing competition in the bidding environment[10]. - The group plans to adjust its business strategies in response to changing economic trends to improve performance[7]. - The group is shifting focus towards smaller construction and renovation projects in China to reduce payment delays and expedite project completion[12]. - The outlook for the fiscal year 2025/2026 anticipates similar challenges as the previous year, including trade tensions and geopolitical uncertainties[17]. - The company aims to maintain a prudent and risk-aware approach while seeking opportunities in Malaysia and neighboring countries[17]. Operational Developments - The company completed 56 civil engineering projects in the current fiscal year, contributing to the revenue increase[24]. - The group completed 9 projects in the fiscal year, contributing approximately MYR 5.1 million to revenue, while ongoing projects from the previous fiscal year contributed approximately MYR 22.5 million[29]. - The group has 10 ongoing projects in China, with completion dates extending from March 2025 to March 2026[31]. - As of June 30, 2025, the group has 7 ongoing projects in Malaysia, down from 10 in 2024, with completion dates ranging from September 2025 to December 2025[26]. - The group has strategically shifted focus to smaller construction and renovation projects in China to reduce payment delays and improve cash flow[28]. Human Resources and Management - The group has 461 employees as of June 30, 2025, down from 513 in 2024, with employee costs approximately 26.7 million MYR compared to 30.0 million MYR in the previous year[76]. - The total employee costs include basic salaries, discretionary bonuses, and allowances, reflecting the company's commitment to managing human capital effectively[76]. - The management team includes executives with extensive backgrounds in resource trading and project management, enhancing operational capabilities[89]. - The management team is committed to continuous professional development, with members pursuing advanced degrees and certifications in relevant fields[95][100]. - The company is actively recruiting for various positions to expand its workforce, including project directors and quality assurance engineers[78]. Corporate Governance - The board is committed to good corporate governance to enhance shareholder value and ensure effective accountability[103]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee various aspects of governance[106]. - The board emphasizes the importance of risk management and compliance with legal and regulatory requirements[107]. - The company has complied with all applicable corporate governance codes during the fiscal year[103]. - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors, ensuring over one-third independence as per listing rules[120]. Risk Management - The company has implemented risk management policies to address various identified risks, including operational and regulatory risks[146]. - The management is monitoring foreign currency risks and considering hedging activities to mitigate the impact of currency fluctuations on operational performance[75]. - The company acknowledges the importance of ongoing compliance training for responsible personnel to prevent future non-compliance incidents[196]. Shareholder Relations - The group recognizes the importance of shareholder privacy and will not disclose shareholder information without consent, except as required by law[161]. - The group has a communication policy aimed at promoting effective communication with shareholders and stakeholders, which is regularly reviewed for effectiveness[160]. - The group will hold its annual general meeting on December 20, 2024, providing shareholders the opportunity to communicate directly with the board[161].
TBKS HLDGS(01960) - 2025 - 年度财报