Financial Performance - For the fiscal year 2021, Rimbaco Group recorded revenue of 282.1 million MYR, an increase of approximately 56.5% from 180.3 million MYR in the fiscal year 2020[9]. - The net profit after tax for the fiscal year 2021 was approximately 12.8 million MYR, up 106.5% from 6.2 million MYR in the fiscal year 2020[9]. - The group's revenue increased from approximately 180.3 million MYR in FY2020 to approximately 282.1 million MYR in FY2021, representing a growth of about 56.5%[21]. - The group's gross profit rose from approximately 22.7 million MYR in FY2020 to approximately 25.3 million MYR in FY2021, an increase of about 11.5%, but the gross profit margin decreased from approximately 12.6% to 9.0%[24]. - The group reported a profit attributable to owners of the company of approximately 12.8 million MYR for FY2021, an increase of about 106.5% compared to approximately 6.2 million MYR in FY2020[31]. - Gross profit for the fiscal year 2021 was 25,284 thousand MYR, compared to 22,743 thousand MYR in 2020, reflecting a growth of approximately 6.7%[166]. - Profit before tax for the fiscal year 2021 was 17,675 thousand MYR, up from 10,948 thousand MYR in 2020, indicating a significant increase of about 61.5%[166]. - Net profit for the fiscal year 2021 reached 12,760 thousand MYR, a substantial rise from 6,198 thousand MYR in 2020, representing an increase of approximately 106.5%[166]. Construction Projects - The company completed five construction projects in the fiscal year 2021, with a total contract value of approximately 27.1 million MYR[14]. - As of October 31, 2021, Rimbaco Group had ten ongoing construction projects with a total contract value of approximately 1,224.8 million MYR[15]. - The revenue from factory projects was approximately 75.5 million MYR, accounting for 26.8% of total revenue, while institutional, commercial, and/or residential projects generated approximately 205.2 million MYR, accounting for 72.7%[22]. - The group submitted 14 tenders for factory projects in FY2021 and was awarded 8 contracts with a total value of approximately 220.7 million MYR[18]. - The group expects ongoing projects to continue smoothly, with nine ongoing projects anticipated to be completed by the end of FY2022[32]. Operational Challenges - The construction industry faced delays due to COVID-19 restrictions, impacting project timelines and resource utilization[8]. - The increase in material costs, such as steel and concrete, has further exacerbated operational challenges during the pandemic[9]. - The company faces challenges in revenue predictability due to Covid-19 impacting construction completion times and revenue recognition, leading to potential fluctuations during reporting periods[137]. - The company may encounter lawsuits due to noise and dust generated by machinery and heavy vehicles during construction periods[137]. - There is a risk of labor shortages if the Malaysian government continues to impose Movement Control Orders (MCO) to curb the spread of Covid-19[137]. Financial Position - As of October 31, 2021, the group's uncompleted engineering order book amounted to approximately 616.2 million MYR, down from approximately 664.4 million MYR a year earlier[23]. - The group maintained a healthy liquidity position with a current ratio of approximately 2.00 times as of October 31, 2021, compared to approximately 2.66 times a year earlier[35]. - The group had no outstanding bank borrowings as of October 31, 2021, with an unused bank overdraft facility of approximately 500,000 MYR[38]. - The group's net current assets increased from approximately RM 133.8 million on October 31, 2020, to approximately RM 146.5 million on October 31, 2021, representing a growth of RM 12.7 million or 9.5%[39]. - Total assets as of October 31, 2021, were 314,676 thousand MYR, while total liabilities were 147,567 thousand MYR, resulting in a net asset position of 167,109 thousand MYR[166]. Corporate Governance - The company has adopted the corporate governance code and has complied with all governance codes during the fiscal year 2021[82]. - The roles of the Chairman and CEO have been clearly separated, with Low Seah Sun serving as Chairman and Low Wui Linn as CEO during the fiscal year 2021[83]. - The board held a total of 4 meetings and 1 annual general meeting during the fiscal year 2021[93]. - All directors have confirmed their compliance with the training requirements as per the corporate governance code[97]. - The company has appointed three independent non-executive directors, ensuring adequate experience and qualifications to protect shareholder interests[89]. - The board is responsible for formulating corporate policies, business strategies, and risk management, among other significant operational and financial matters[87]. - The company has implemented a code of conduct for securities trading, ensuring compliance with the standards set forth in the listing rules[84]. - The company has committed to continuous professional development for all directors to enhance their knowledge and skills[96]. - The independent non-executive directors provide independent and objective opinions to ensure the overall interests of shareholders[89]. - The company has maintained good corporate governance standards to enhance shareholder value[82]. Remuneration and Share Options - The company established a Remuneration Committee on March 31, 2020, to review the remuneration policies for all directors and senior management, holding 2 meetings in the fiscal year 2021[102]. - In the fiscal year 2021, the remuneration range for senior management was reported, with 3 individuals earning between 0 to 1,000,000 MYR[103]. - The company has adopted a share option scheme effective from April 28, 2020, allowing eligible participants to acquire shares in the company[53]. - The company has established a remuneration committee to review and determine the compensation of directors and senior management based on performance and market comparisons[186]. - The share option scheme aims to provide additional incentives to employees, directors, and business partners to drive business performance[197]. Risk Management - The company established a risk register to document identified risks, their ratings, mitigation plans, and responsible parties, ensuring regular reviews to adapt to changing business environments[135]. - The internal control system is reviewed annually to ensure its effectiveness, with an independent consultant conducting evaluations of the risk management and internal control systems[136]. - The Audit Committee confirmed that the financial statements were prepared in accordance with applicable accounting standards and provided adequate disclosures[129]. - The company’s board of directors is responsible for corporate governance and has delegated specific responsibilities to the Audit Committee, including the review of governance policies[133]. - The Audit Committee met twice to review the company's compliance with corporate governance codes and policies during the fiscal year 2021[133]. Shareholder Communication - The company values communication with shareholders and investors, utilizing various channels to provide performance information and encourage inquiries[143]. - The company has established procedures for handling and disclosing insider information, adhering to the standards set out in the listing rules[140]. - The company's dividend policy aims to balance shareholder interests with prudent capital management, considering factors such as actual and expected financial performance and future expansion plans[149]. - The board retains discretion over the declaration and payment of dividends, with no predetermined payout ratio or commitment to distribute specific amounts in the future[150].
RIMBACO(01953) - 2021 - 年度财报