Financial Performance - The total revenue for the first half of 2023 was 574.8 million MYR, a significant decrease of approximately 33.8% compared to 868.0 million MYR in the same period of 2022[9]. - The net profit for the first half of 2023 was 2.5 million MYR, down about 68.1% from 7.7 million MYR in the first half of 2022[9]. - The sales volume of black scrap metal decreased to 308,891 tons in the first half of 2023 from 384,646 tons in the same period of 2022, representing a decline of approximately 20%[9]. - The average selling price of black scrap metal per ton was approximately 1,740 MYR in the first half of 2023, down about 17% from 2,095 MYR in the same period of 2022[14]. - Gross profit for the first half of 2023 was 29.6 million MYR, a decrease of 16.1% from 35.3 million MYR in the first half of 2022[18]. - Operating profit decreased significantly to MYR 5,843 thousand, a decline of 55.5% from MYR 13,117 thousand in the prior year[71]. - Net profit for the period was MYR 2,452 thousand, representing a 68.1% decrease from MYR 7,690 thousand in the same period last year[71]. - Basic and diluted earnings per share were MYR 0.25, down from MYR 0.78 in the previous year, reflecting a decline of 67.9%[71]. Expenses and Costs - Distribution and selling expenses decreased to 11.3 million MYR in the first half of 2023, down approximately 14.4% from 13.2 million MYR in the first half of 2022[19]. - Administrative expenses increased to 13.4 million MYR in the first half of 2023, up 15.5% from 11.6 million MYR in the same period of 2022[20]. - Employee costs and related expenses for the six months ended June 30, 2023, amounted to 11.0 million MYR, an increase of 18.3% compared to 9.3 million MYR for the same period in 2022[55]. - The cost of goods sold decreased to 537,908 thousand MYR in 2023 from 824,170 thousand MYR in 2022, representing a reduction of approximately 34.8%[100]. Assets and Liabilities - Total assets as of June 30, 2023, were 315.1 million MYR, an increase from 278.5 million MYR as of December 31, 2022[7]. - Total liabilities increased to MYR 108,902 thousand from MYR 74,676 thousand, a rise of 45.7%[76]. - The total borrowings as of June 30, 2023, amounted to 75.4 million MYR, an increase from 52.3 million MYR as of December 31, 2022[28]. - The debt-to-equity ratio increased to 37.6% as of June 30, 2023, from 26.6% as of December 31, 2022[28]. - Total receivables and other receivables increased to 166,987 thousand MYR as of June 30, 2023, compared to 142,727 thousand MYR at the end of 2022, an increase of about 17.0%[110]. Cash Flow - The net cash used in operating activities was MYR (3,525) thousand, an improvement from MYR (7,717) thousand in the same period of 2022[82]. - The total cash flow from operating activities was 9,367 thousand MYR for the six months ended June 30, 2023, compared to 15,862 thousand MYR in the same period of 2022[136]. - The net cash generated from financing activities was MYR 21,014 thousand, up from MYR 14,659 thousand in the prior year, reflecting increased borrowing[82]. - The total cash and cash equivalents at the end of the period increased to MYR 39,448 thousand from MYR 29,116 thousand year-over-year, representing a growth of 35.5%[82]. Shareholder Information - The total issued shares as of June 30, 2023, amount to 1,000,000,000 ordinary shares[43]. - Major shareholders, including the Sia brothers, collectively hold 581,680,000 shares, representing 58.17% of the total shares[41]. - 5S Holdings, a related entity, holds 341,680,000 shares, accounting for 34.17% of the total shares[47]. - The company has not established any arrangements that would allow directors to benefit from purchasing shares or debt securities in the last six months[46]. Risk and Governance - The company has a robust monitoring system for overdue receivables, with historical trends indicating low default risk as long as credit ratings remain stable[39]. - The company has adhered to the corporate governance code, with no deviations reported except for the combined roles of the Chairman and CEO[53]. - There are no significant adverse changes expected in the business, financial, or economic conditions affecting the ability of receivables to meet obligations[39]. Capital Expenditures and Investments - The company has committed 6,389 thousand MYR for the expansion of its Selangor waste facility, with 5,349 thousand MYR already utilized[61]. - The group has committed capital expenditures of 11,757 thousand MYR for the purchase of two adjacent vacant land parcels as of June 30, 2023[138]. - The total cost of property, plant, and equipment acquisitions was 3,525,247 thousand MYR in 2023, compared to 2,656,854 thousand MYR in 2022, an increase of approximately 32.7%[108]. Taxation - The actual tax rate for the first half of 2023 was 42.8%, up from 36.7% in the first half of 2022, primarily due to an increase in non-deductible expenses[22]. - Income tax expense decreased to 1,995 thousand MYR in 2023 from 4,453 thousand MYR in 2022, a decline of approximately 55.2%[102].
兴合控股(01891) - 2023 - 中期财报