Financial Performance - The company reported a revenue of approximately MYR 475.6 million for the fiscal year 2022, an increase of about MYR 193.5 million or 68.6% compared to MYR 282.1 million in the fiscal year 2021[9]. - The net profit after tax for the fiscal year 2022 was approximately MYR 0.2 million, a decrease of about MYR 12.6 million or 98.4% from MYR 12.8 million in the fiscal year 2021 due to increased sales costs[9]. - For the fiscal year 2022, the company's revenue was approximately 475.6 million MYR, a significant increase from 282.1 million MYR in 2021, representing a growth of 68.6%[21]. - The company's gross profit decreased from approximately 25.3 million MYR in 2021 to about 4.9 million MYR in 2022, a decline of 80.6%, with the gross margin dropping from 9.0% to 1.0%[23]. - The company's net profit attributable to shareholders was approximately 0.2 million MYR in 2022, a decrease of 98.4% from 12.8 million MYR in 2021[29]. - The total assets of the group as of October 31, 2022, were 283,719 thousand MYR, down from 314,676 thousand MYR in 2021, representing a decrease of 9.8%[180]. - The total liabilities of the group as of October 31, 2022, were 127,502 thousand MYR, a decrease of 13.6% from 147,567 thousand MYR in 2021[180]. - The group's distributable reserves were approximately 99.8 million MYR, down from 111.6 million MYR in the previous fiscal year[185]. - The group did not recommend a final dividend for the fiscal year 2022, consistent with the previous fiscal year[175]. Construction Projects - The company completed 7 construction projects in the fiscal year 2022 with a total contract value of approximately MYR 503.3 million[15]. - As of October 31, 2022, the company had 9 ongoing construction projects with a total contract value of approximately MYR 984.7 million[18]. - The company submitted 11 tenders for factory projects, 5 for institutional and commercial projects, and 1 for infrastructure projects in the fiscal year 2022, winning 5 factory projects and 1 infrastructure project with a total contract value of approximately MYR 319.1 million[18]. - The company is focused on expanding its project portfolio in the building construction sector, particularly in Malaysia[15]. Economic Conditions - The company is cautious about future economic conditions due to challenges such as rising fuel prices, supply chain disruptions, and labor costs[10]. - The International Monetary Fund and World Bank have downgraded the global economic growth forecast for 2022 to 3.2% and 2.9%, respectively, indicating potential economic headwinds[10]. - The construction industry continues to face challenges such as labor shortages and rising logistics and material costs[9]. - The company aims to prudently manage its business operations and financial resources to maximize business potential during challenging times[11]. Management and Governance - The management team includes experienced executives with over 38 years in the construction industry, overseeing strategic planning and business direction[64]. - The CEO, William Low, has over 17 years of experience in the construction sector, having joined the company in 2006[66]. - Seah Peet Hwah, an executive director, has over 34 years of experience in the construction industry, focusing on financial and administrative matters[70]. - Cheang Wye Keong, another executive director, has over 35 years of experience, managing technical aspects of the group[72]. - Lau Ah Cheng, responsible for logistics and equipment maintenance, has over 35 years of experience in the construction industry[76]. - The company has a strong management team with diverse expertise in various operational areas, enhancing its competitive position in the market[64][70][72][76]. - The company is committed to maintaining strong governance and compliance through its experienced board of directors[80]. - The company has adopted the previous corporate governance code and has complied with all provisions during the 2022 financial year[93]. - The roles of Chairman and CEO have been clearly separated and are held by Low Seah Sun and Low Wui Linn respectively[94]. - The board is responsible for formulating corporate policies, business strategies, and major operational and financial matters[97]. - The company has maintained good corporate governance standards to protect and enhance shareholder value[93]. Risk Management - The company has established a risk management and internal control system, which was reviewed for effectiveness during the fiscal year[139]. - The board believes that the risk management and internal control systems are effective and adequate, although they are designed to manage rather than eliminate risks[146]. - The group faces compliance risks related to potential legal liabilities and must ensure adherence to industry regulations and listing requirements[147]. - Financial risk management procedures enable the group to effectively manage its financial resources and meet liquidity needs[148]. - Business risks are assessed based on the severity of consequences and likelihood of occurrence, focusing on material prices, labor market fluctuations, and other economic factors[149]. Shareholder Communication - The company emphasizes clear, fair, and timely financial reporting to maintain stakeholder confidence[155]. - The company values communication with shareholders and investors, utilizing financial reports and annual general meetings as primary channels[157]. - Shareholders holding at least 10% of the voting shares can request a special general meeting if the board does not convene within 21 days of the request[159]. Charitable Contributions - The group made charitable donations of approximately 18,000 MYR in the fiscal year 2022, compared to about 10,000 MYR in 2021[179].
RIMBACO(01953) - 2022 - 年度财报