Financial Performance - Revenue for the six months ended June 30, 2023, was RM 59,123,000, a decrease of 18% compared to RM 72,044,000 in the same period of 2022[7] - Gross profit for the same period was RM 12,793,000, down 28% from RM 17,816,000 year-on-year[7] - The company reported a profit attributable to equity holders of RM 5,541,000, a decrease of 14% from RM 6,425,000 in the previous year[7] - Basic and diluted earnings per share for the period were 1.17 sen, compared to 1.36 sen in the prior year[7] - For the six months ended June 30, 2023, total revenue was RM 59,123,000, an increase from RM 41,273,000 in the same period of 2022, representing a growth of 43.3%[24] - The gross profit for the same period was RM 12,793,000, compared to RM 7,817,000 in 2022, reflecting a significant increase of 63.2%[24] - The company reported a pre-tax profit of RM 7,815,000, compared to RM 5,541,000 in the previous year, showing an increase of 41.0%[24] - The company reported a pre-tax profit of 9,726 thousand MYR, down from 10,726 thousand MYR in the previous year, indicating a decline of 9.3%[32] - Net profit for the period was 6,425 thousand MYR, a decrease of 6.5% from 6,425 thousand MYR in the same period of 2022[35] Assets and Equity - Total assets as of June 30, 2023, amounted to RM 165,841,000, an increase from RM 159,144,000 at the end of 2022[9] - Total equity increased to RM 154,920,000 as of June 30, 2023, compared to RM 148,603,000 at the end of 2022[9] - The total equity attributable to owners was approximately 154.9 million MYR as of June 30, 2023, compared to 148.6 million MYR as of December 31, 2022[75] Cash Flow and Financing - Cash generated from operating activities for the six months was RM 13,703,000, significantly higher than RM 7,534,000 in the same period last year[12] - The bank balance and cash at the end of the reporting period was RM 57,280,000, up from RM 22,933,000 in 2022, marking an increase of 149.5%[13] - The net cash used in financing activities was RM (430,000), slightly higher than RM (377,000) in the previous year, indicating a 14.1% increase in cash outflow[13] - The company’s lease liabilities increased to 409 thousand MYR as of June 30, 2023, from 87 thousand MYR as of December 31, 2022[47] - The group had no outstanding bank borrowings as of June 30, 2023, and lease liabilities were approximately 0.4 million MYR[75] Operational Performance - The division performance for animal feed additives generated a profit of RM 9,190,000, while the human food ingredients division contributed RM 2,249,000, totaling RM 11,439,000[24] - Distribution revenue for the same period was 41,273 thousand MYR, down 20% from 51,697 thousand MYR in 2022[30] - Production revenue decreased to 17,850 thousand MYR from 20,347 thousand MYR, representing a decline of 12%[30] - The distribution business generated revenue of approximately MYR 41.3 million, accounting for about 69.8% of total revenue, a decrease of approximately MYR 10.4 million or 20.1% from the previous year[65] - Manufacturing business revenue was approximately MYR 17.9 million, representing about 30.2% of total revenue, a decrease of approximately MYR 2.4 million or 11.8% from the previous year[65] Expenses and Cost Management - The total administrative and other operating expenses were RM (5,530,000), which impacted the overall profitability[24] - Administrative and other operating expenses decreased to approximately MYR 5.5 million, down about 15.4% from approximately MYR 6.5 million in the same period of 2022[70] - The company did not incur any capital expenditures for property, plant, and equipment during the reporting period[24] - Capital expenditures for property, plant, and equipment reached approximately 1,283 thousand MYR, up from 976 thousand MYR in the previous year, reflecting a growth of 31.3%[26] Strategic Initiatives - The company plans to focus on market expansion and new product development to drive future growth[7] - The company continues to focus on expanding its distribution of animal feed additives and human food ingredients in the Malaysian market[16] - The company entered into a cooperation agreement to invest up to RMB 25 million in a development project in Wenchang City, China, as part of its strategy to expand into new markets[59] - The company has adopted a cautious approach to business expansion due to the adverse effects of the COVID-19 pandemic on global growth prospects[92] - The company is actively exploring suitable business and investment opportunities while closely monitoring the global economy[92] Governance and Compliance - The board members collectively control 337.5 million shares, representing 71.5% of the company's total issued share capital[94] - Garry-Worth Investment Limited, controlled by the chairman, holds 53.37% of the shares in the company[95] - The company has adopted the principles of the corporate governance code revised and effective from January 1, 2022, to ensure effective accountability and enhance shareholder value[106] - The roles of the chairman and the CEO are held by the same individual, Datuk Seri Lee Haw Yih, which the board believes provides strong and consistent leadership[108] - The company has maintained compliance with applicable provisions of the corporate governance code during the six months ended June 30, 2023, except for the aforementioned deviation regarding the roles of chairman and CEO[108] Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[36] - The group did not declare any interim dividends for the six months ended June 30, 2023[78] - The company has adopted a share option scheme approved by shareholders on April 8, 2020, aimed at incentivizing employees and other qualified individuals for their contributions to the group's development[99] - As of June 30, 2023, the total number of shares available for issuance under the share option scheme is 50,000,000, representing approximately 10.6% of the company's total issued share capital[103] Risk Management - The provision for losses on trade receivables increased to 1,304 thousand MYR in 2023 from 1,144 thousand MYR in 2022, indicating a rise in credit risk[39] - The aging analysis of trade receivables shows that 30 days overdue receivables decreased by 16.5% to 8,854 thousand MYR in 2023 from 10,605 thousand MYR in 2022[40] - The company maintains a cautiously optimistic outlook for long-term development while prioritizing prudent financial management and cost control measures[64]
利特米(01936) - 2023 - 中期财报