Financial Performance - Revenue for the year ended December 31, 2021, increased by approximately 10.3% to RM 120.8 million from RM 109.5 million in 2020[8] - Gross profit rose by 6.8% to RM 32.4 million, with a gross margin of 26.8%, down from 27.7% in the previous year[8] - Profit attributable to owners of the company surged to RM 9.3 million, compared to RM 0.4 million in 2020, excluding listing expenses[8] - Revenue from printable apparel increased by 11.0% to RM 104.4 million, driven by improved consumer sentiment following the easing of COVID-19 restrictions in Malaysia[16] - Revenue from gift products rose by 6.5% to RM 16.4 million, attributed to a 16.8% increase in average selling price per item[17] Expenses and Costs - Sales and distribution expenses decreased by approximately 5% to RM 5.7 million, primarily due to effective salary control and reduced marketing expenses[18] - Administrative and other operating expenses increased by 12.1% to RM 15.7 million, mainly due to additional legal and professional fees related to compliance post-listing[19] - Income tax expenses increased by approximately MYR 0.6 million or 16.2% to about MYR 4.3 million due to an increase in profit before tax[22] - The total employee cost for the year ended December 31, 2021, was approximately MYR 18.5 million, slightly down from MYR 18.9 million in 2020[31] Cash and Assets - As of December 31, 2021, cash and cash equivalents were approximately MYR 81.1 million, up from MYR 66.1 million in 2020, primarily due to increased net cash inflow from operating activities[23] - As of December 31, 2021, the current assets and current liabilities were approximately MYR 130.1 million and MYR 6.5 million, respectively, with a net current asset value of about MYR 123.6 million[25] - The debt-to-equity ratio decreased to approximately 5.3% as of December 31, 2021, from 6.3% in 2020, mainly due to repayment of interest-bearing loans and an increase in equity base[30] Strategic Initiatives - The company has established warehousing facilities in Malaysia to meet customer demand, including two owned warehouses in Johor Bahru[10] - The group plans to enhance and increase warehousing capacity, including acquiring land in Johor for a new warehouse, to expand market share amid COVID-19 uncertainties[24] - The company plans to enhance and improve existing warehouse capacity with an investment of $22.3 million, expected to be completed by December 2024[41] - Strengthening sales and marketing efforts is projected to require $14.4 million, also targeted for completion by December 2024[41] - Establishing two new distribution centers is estimated to cost $4.8 million, with a completion date set for December 2024[41] - Investment in information systems is planned at $8.6 million, expected to be finalized by December 2024[41] - Development of an e-commerce sales platform is budgeted at $6.1 million, with a completion timeline of December 2024[41] Governance and Compliance - The board has confirmed compliance with corporate governance standards, ensuring transparency and accountability in operations[63] - The company has established a whistleblowing policy to encourage employees to report any misconduct, with the audit committee responsible for overseeing this policy[145] - The company has implemented a code of conduct applicable to employees and directors, ensuring compliance with legal and regulatory requirements[91] - The board consists of six members, including three executive directors and three independent non-executive directors[74] - The company provides professional training to directors to ensure they are updated on listing rules and governance policies[110] Risk Management - The group has established a risk management policy and formal risk assessment system, identifying and evaluating risks annually[137] - The effectiveness of the risk management and internal control systems was reviewed, and the board found them to be adequate and effective[141] - The group has engaged independent internal control consultants to review its internal control systems annually, ensuring compliance and effectiveness[138] - The board is responsible for monitoring compliance with applicable laws and regulations, ensuring the effectiveness of regulatory compliance procedures[135] Shareholder Relations - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and ensure timely and non-selective disclosure of information[147] - The board is committed to engaging with shareholders through the annual general meeting to address their concerns[117] - The company has a process for shareholders to request special general meetings if they hold at least 10% of the paid-up capital[119] Future Outlook - The economic outlook for 2022 remains uncertain and challenging, but the company aims to enhance operational efficiency to maintain business sustainability[12] - The company anticipates challenges in the current fiscal year 2022 due to the ongoing impact of COVID-19[41] - The company will continuously assess and explore new business opportunities to achieve sustainable growth and long-term shareholder value[42]
大人国际(01957) - 2021 - 年度财报