Financial Performance - The company reported a total revenue of 1,418.2 million MYR for the fiscal year ended December 31, 2021, representing a 63.3% increase from 868.3 million MYR in the previous year[20]. - The net profit attributable to the company owners was 25.5 million MYR, a significant increase of 202.4% compared to 8.4 million MYR in the fiscal year ended December 31, 2020[20]. - The company's gross profit for the fiscal year was 77.6 million MYR, compared to 49.0 million MYR in the previous year[12]. - The net profit after tax reached 25.4 million MYR, representing a significant growth of 202.4% compared to 8.4 million MYR for the fiscal year ending December 31, 2020[70]. - Other income rose from 2.8 million MYR in 2020 to 4.2 million MYR in 2021, primarily due to an increase in transportation income[90]. - The group's total equity attributable to shareholders was 206.8 million MYR as of December 31, 2021, compared to 184.2 million MYR in 2020[96]. Sales and Operations - The sales volume of ferrous scrap metal reached 701,846 tons, up 9.7% from 639,871 tons in the previous fiscal year[20]. - In the fiscal years 2020 and 2021, the company sold approximately 639,871 tons and 701,846 tons of ferrous scrap metal, accounting for 88.2% and 90.9% of total revenue, respectively[30]. - The sales volume of black scrap metal increased by 9.5% compared to the previous year, driven by strong demand and pricing[78]. - The company operates three scrap yards covering approximately 51,000 square meters, strategically located to ensure a steady supply of ferrous scrap metal[30]. - The company has a fleet of 67 trucks, with 52 trucks having a capacity of 20 tons or more, enabling timely logistics support for small and medium suppliers[30]. - During the COVID-19 pandemic in 2021, the company successfully delivered goods to steel mills without significant incidents, demonstrating effective logistics management[199]. Financial Position - Total assets increased to 280.0 million MYR from 228.8 million MYR in the previous year, reflecting a growth of 22.5%[17]. - The company's total liabilities rose to 73.2 million MYR, up from 44.5 million MYR in the previous year[17]. - The current ratio decreased to 3.6 times in 2021 from 5.1 times in 2020, indicating a tighter liquidity position[94]. - The debt-to-equity ratio increased to 16.7% in 2021 from 11.7% in 2020, reflecting higher borrowing levels[97]. - The company has sufficient liquidity and financial resources to meet operational funding needs and support future expansion plans[97]. Strategic Goals - The company aims to achieve sustainable profitability through cost reduction and operational efficiency improvements[19]. - The company plans to continue focusing on the growing demand for steel products in the market[20]. - The company aims to expand its business across the region and diversify its business portfolio, focusing on human resources strategy to enhance sustainability and competitiveness[25]. - The company plans to enhance operational efficiency and expand its supplier and customer base to strengthen its market position in the black scrap metal trade in Malaysia[71]. - The company is committed to reviewing its strategies to further improve operational efficiency and achieve greater success[26]. Governance and Management - The company recognizes the importance of good governance and aims to maintain its market leadership while providing substantial returns to shareholders[25]. - The board consists of five executive directors and three independent non-executive directors, ensuring compliance with listing rules regarding independent director appointments[124]. - The company has established three board committees: Audit and Risk Committee, Remuneration Committee, and Nomination Committee to oversee specific areas of corporate affairs[119]. - The company has adopted the corporate governance code to ensure proper regulation of business activities and decision-making processes, with a commitment to high standards of corporate governance[117]. - The company has implemented a diversity policy for board members, considering various factors such as gender, age, and professional experience in appointments[125]. Risk Management - The company has implemented various internal control and risk management policies, including asset depreciation provision management and inventory management policies[161]. - The Audit and Risk Committee reviews the financial reporting system and compliance procedures, ensuring the adequacy of resources and training for accounting and financial reporting functions[147]. - The company has established a policy for handling and disclosing inside information to prevent any individual from having an advantage in securities trading[163]. - The company faces minimal foreign exchange risk as most transactions, assets, and liabilities are denominated in Malaysian Ringgit[108]. Environmental, Social, and Governance (ESG) - The company emphasizes its role in the recycling industry, contributing to environmental protection and resource conservation[183]. - The ESG report outlines sustainability measures and highlights the impact of ESG initiatives on the company[183]. - Key ESG issues identified include energy efficiency, environmental compliance, employment, occupational health and safety, and corporate governance[198]. - The company is committed to continuous improvement in its ESG activities and compliance with regulations[189]. - The governance structure includes a board of directors, an audit and risk committee, and a working group to oversee sustainability efforts[187].
兴合控股(01891) - 2021 - 年度财报