Financial Performance - For the six months ended November 30, 2025, the Company reported revenue of RM 18,905,000, an increase of 21.5% compared to RM 15,494,000 in the same period of 2024[14]. - Gross profit for the same period was RM 5,446,000, reflecting a growth of 26.3% from RM 4,311,000 in 2024[15]. - Profit before taxation increased to RM 1,406,000, up 3.9% from RM 1,353,000 in the previous year[15]. - Profit for the period from continuing operations was RM 789,000, compared to RM 747,000 in the same period last year, marking a 5.6% increase[15]. - Total comprehensive income for the period increased to RM 628,000, compared to RM 254,000 in the previous year, representing a growth of 147.2%[16]. - Basic earnings per share from continuing operations rose to 4.83 RM cents, up from 4.77 RM cents, reflecting a 1.3% increase[16]. - The company reported a profit for the period of RM 789,000, compared to RM 722,000 in the previous year, an increase of 9.3%[20]. Expenses and Costs - Administrative expenses rose to RM 2,710,000, up from RM 2,516,000, indicating a 7.7% increase year-over-year[15]. - Selling and distribution expenses increased to RM 1,213,000, compared to RM 899,000 in the previous year, representing a 35% rise[15]. - Finance costs increased to RM 104,000 from RM 46,000, showing a significant rise of 126.1%[15]. - Cost of inventories recognized as an expense was RM 8,390,000, compared to RM 7,338,000 in the prior year, representing an increase of approximately 14.4%[51]. - Staff costs, excluding directors' remuneration, amounted to RM 2,471,000, up from RM 2,154,000, indicating a rise of about 14.7%[51]. Assets and Liabilities - Non-current assets totaled RM 22,100,000 as of November 30, 2025, a slight decrease from RM 22,395,000 as of May 31, 2025[17]. - Current assets decreased to RM 31,771,000 from RM 32,768,000, indicating a decline of 3%[18]. - Total equity increased to RM 37,336,000 from RM 36,708,000, marking a growth of 1.7%[18]. - Total non-current liabilities decreased to RM 6,064,000 from RM 6,360,000, reflecting a reduction of 4.6%[18]. - The Group's total liabilities as of November 30, 2025, are RM10,101,000, compared to RM11,280,000 as of May 31, 2025[79]. Cash Flow - Net cash generated from operating activities for the six months ended 30 November 2025 was RM 3,161,000, compared to a cash used of RM 1,141,000 in the same period of 2024[21]. - Net cash used in investing activities was RM 1,706,000 for the six months ended 30 November 2025, a decrease from RM 1,930,000 in the previous year[21]. - Net cash used in financing activities amounted to RM 407,000 for the six months ended 30 November 2025, compared to a cash generated of RM 198,000 in the same period of 2024[22]. - The total cash and cash equivalents at the end of the period was RM 22,181,000, a decrease from RM 23,432,000 in the previous year[22]. Market and Operations - The company is engaged in manufacturing and trading precast concrete junction boxes and providing mobile crane rental services in Malaysia, as well as operating an e-commerce platform in China[25]. - The Group manufactures precast concrete junction boxes for telecommunication and electrical infrastructures, which are used in various construction projects in Malaysia[94]. - The Group has been a registered supplier for notable telecommunication companies since 2008 and for Tenaga National Bhd. since 2012, enhancing its market position[95]. - The Group has entered the e-commerce platform business following the acquisition of Shenzhen Wanshun eCar Cloud Tech & Information Co., Ltd., contributing approximately RM70,000 in revenue during the period[105]. Share Capital and Dividends - The company did not recommend the payment of a dividend for the six months ended 30 November 2025, consistent with the previous year[66][68]. - The Group's issued and fully paid share capital as of November 30, 2025, is RM13,081,000, with a total of 16,352,000 shares issued[85]. - The Group entered into an agreement to acquire 1% of the registered capital of a target company for a total consideration of HK$34 million, to be settled through the issuance of promissory notes[121]. Taxation - For the six months ended 30 November 2025, the Malaysia corporate income tax was calculated at a statutory rate of 24%, resulting in a tax expense of RM 617,000, compared to RM 606,000 for the same period in 2024[55][56]. - The Hong Kong Profits Tax for the six months ended 30 November 2025 was calculated at a rate of 16.5%, with no assessable profits leading to no tax provision for the period[57][58]. Risks and Compliance - The Group is exposed to credit risk and liquidity risk due to reliance on cash inflow from customers[173]. - The Group faces operational risks due to fluctuations in raw material prices, which may adversely impact financial results[172]. - The Company has complied with the Corporate Governance Code, except for the separation of roles between the chairman and CEO[179]. - The Company has complied with relevant laws and regulations that significantly impact its operations during the reporting period[193].
万顺瑞强集团(08427) - 2026 - 中期财报