Project Completion and Revenue - The Group successfully completed several projects during FY2023, including the notable handover of the Setia SPICE hotel project in Penang[17]. - The Group successfully completed and handed over the Setia SPICE hotel project in December 2022, leading to new tender opportunities for similar projects[35]. - For the fiscal year 2023, the Group's consolidated revenue from the Construction Services sector was RM107.5 million, accounting for 97.6% of total revenue, compared to RM275.9 million or 96.5% for the previous 18-month period[34]. - The Group's total revenue for FY2023 was RM110.1 million, a significant decrease from RM285.8 million in FPE2022, primarily due to the shorter reporting period of 12 months in FY2023 compared to 18 months in FPE2022[60]. - The Group achieved a gross profit of RM4.3 million in FY2023, improving from a gross loss of RM50.1 million in FPE2022, resulting in a gross profit margin of 3.9% compared to -17.5% in FPE2022[62]. - Net profit attributable to owners of the Company was approximately RM11.9 million in FY2023, a turnaround from a net loss of RM56.5 million in FPE2022, driven by securing extensions of time for major projects and lower impairment losses[63]. Economic Environment - Malaysia achieved an impressive economic growth rate of 5.6% in Q1 2023, indicating optimism for a better-than-expected year[19]. - Malaysia's economy grew by 5.6% in the first quarter of 2023, indicating a positive outlook for economic performance[21]. - The Malaysian economy is expected to recover gradually in 2023, with a reported economic growth of 5.6% in Q1 2023, enhancing confidence and attracting foreign direct investment[112]. - Malaysia's economy is expected to gradually recover and stabilize in 2023, with a reported 5.6% economic growth in Q1 2023, enhancing public confidence and attracting foreign direct investment[114]. Challenges and Strategies - The construction industry faced challenges such as global supply chain disruptions, high core inflation, and economic impacts from geopolitical tensions[18]. - The Group faced challenges due to global supply chain disruptions, geopolitical tensions, and economic instability, impacting the construction and concession industries[21]. - The Group implemented strategies to source alternative options and optimize delivery processes to mitigate risks during challenging times[19]. - The Group's strategy focuses on enhancing efficiency and optimizing delivery processes to mitigate risks during challenging times[21]. - The Group did not secure any new contracts during FY2023, highlighting the competitive challenges in the construction sector[36]. - The Group did not secure any new projects in FY2023, focusing instead on increasing productivity for ongoing projects and preserving resources for suitable future projects[42]. Order Book and Future Opportunities - The Group has an outstanding order book of RM158.6 million as of March 31, 2023, which is expected to sustain operations for another 18 months[36]. - The Group aims to leverage its existing track record and expertise to capitalize on future opportunities in the construction and concession sectors[26]. - The Group's focus on the Building and Structures segment is expected to enhance future revenue contributions as other segments face challenges in procurement activities[46]. - The Group plans to invest more resources to procure new projects similar to the disposed LSSPV power plant, indicating a strategic shift rather than an exit from the sector[54]. - The Group continues to seek opportunities in the construction and concession industry to ensure sustainability and growth[113]. Financial Management and Costs - Other income decreased significantly from RM50.7 million in FPE2022 to RM1.2 million in FY2023, primarily due to one-off gains from debt extinguishment in the previous period[64]. - Administrative and other expenses were reduced from RM35.5 million in FPE2022 to RM15.7 million in FY2023, attributed to lower staff costs and professional fees[69]. - Finance costs decreased to RM1.1 million in FY2023 from RM3.9 million in FPE2022, due to repayments of bank borrowings[70]. - The net gearing ratio increased to 0.28 times as of March 31, 2023, from 0.01 times a year earlier, influenced by advances received for project development costs[72]. - Cash and bank balances decreased to RM29.9 million as of March 31, 2023, down from RM37.3 million a year prior, reflecting a reduction of RM7.4 million[73]. - The Group's net current assets stood at RM107.8 million as of March 31, 2023, compared to RM118.9 million as of March 31, 2022[74]. - The Group did not acquire any significant investments or construction machinery in FY2023, focusing instead on internal funding for capital expenditures[83][91]. Human Resources - As of March 31, 2023, the Group's employee count was 107, down from 130 in the previous year, with total employee costs for FY2023 amounting to 10.6 million Ringgit compared to 18.4 million Ringgit in FY2022[93]. - The Group's overall business is supervised by Dato' Michael Teh, who serves as the Executive Director and Chief Executive Officer[136]. - Chiang Wai Lam, the Project Director, has approximately 16 years of experience in the construction field, overseeing construction projects for the Group[137]. - Joan Ong May Ean, the Chief Financial Officer, has over 7 years of experience in accounting and finance, ensuring overall financial management of the Group[142]. Environmental, Social, and Governance (ESG) - The Group aims to integrate ESG concepts into its business and growth strategies, continuously improving performance in relevant areas[150]. - The Group has adopted specific ESG objectives, policies, and procedures to enhance its sustainability management[151]. - The Group's sustainability management strategy includes allocating resources for ESG and embedding ESG objectives into its operational systems[152]. - The Group has established ESG objectives focusing on environmental sustainability, social sustainability, and good corporate governance practices[153]. - The Board is responsible for evaluating ESG-related risks and ensuring effective ESG risk management and internal control systems are in place[156]. - The proprietary Qube System 2.0 includes eight elements, two of which emphasize ESG: Waste Reduction Policy and Emission Reduction Policy[160]. - The Group promotes environmental sustainability through the motto "Sustaining Together," which includes initiatives to reduce air pollutants and waste[166]. - The Group's commitment to community investments is encapsulated in the motto "Caring Together," supporting charities and employee welfare initiatives[166]. Environmental Performance - The Group has implemented an emission reduction policy aimed at decreasing air pollutants and greenhouse gas emissions through efficient vehicle and machinery use, conscious energy consumption, and rainwater harvesting systems[176]. - The Group's waste reduction policy focuses on minimizing hazardous and non-hazardous waste through methods such as dip trays and bund walls, and promoting recycling practices[177]. - Compliance with the Environmental Quality Act 1974 of Malaysia governs the emission of air pollutants and the handling of hazardous and non-hazardous wastes[178]. - The main sources of air pollutants in the Group's operations are construction machinery and motor vehicles, with specific amounts and intensities of emissions detailed in the report[179]. - Total GHG emissions for the year amounted to 2,545.38 tonnes, with direct emissions from mobile and stationary combustion at 1,573.81 tonnes and indirect emissions from purchased electricity at 968.88 tonnes[187]. - The Group produced 58.031 tonnes of hazardous wastes at project sites, resulting in a hazardous waste intensity of 0.00015218 tonnes/m²[191]. - Non-hazardous wastes produced by project sites totaled 3,281.220 tonnes, with an intensity of 0.0086 tonnes/m²[194]. - Energy consumed by project sites reached 6,468,810.543 kWh, translating to an energy intensity of 16.963 kWh/m²[199]. - The amount of air pollutants emitted by the Group's operations was 1.67 tonnes, with an intensity of 4.380 grammes/m²[183].
璋利国际(01693) - 2023 - 年度财报