Revenue Performance - The company reported significant revenue from oil and related product trading in China, contributing to operational profits [11]. - The revenue from oil and related products trade in China increased significantly from RM 106.7 million to RM 765.9 million, marking a nearly sixfold increase [22]. - The group reported a profit attributable to owners of approximately RM 10.4 million, compared to RM 0.6 million in the previous year, with earnings per share rising to 1.04 sen from 0.06 sen [22]. - The group's civil and structural engineering revenue decreased by approximately 44.4% from about RM 82.4 million to RM 45.8 million for the fiscal year [16]. - The revenue from civil and structural engineering in China was approximately RM 14.2 million for the fiscal year [20]. - The revenue from civil and structural engineering services decreased by approximately 44.4% from about 82.4 million MYR in the previous fiscal year to about 45.8 million MYR in the current fiscal year [50]. - Revenue from civil engineering projects fell from approximately 63.5 million MYR to about 43.2 million MYR, a decrease of about 31.9% [52]. - Revenue from construction projects decreased from approximately 18.9 million MYR to about 2.6 million MYR, representing a significant decline [57]. - The revenue from oil and related products trade in China for the fiscal year was approximately 765.9 million MYR, a significant increase from 106.7 million MYR in the previous year, reflecting a growth of about 618.7% [65][78]. Operational Challenges - The company has faced challenges such as project delays and labor shortages in Malaysia, affecting its financial performance during the fiscal year [10]. - The company currently has 11 ongoing projects in Malaysia, down from 13 in the previous year [60]. - The company faces risks related to subcontractors, including potential delays and compliance issues, which could lead to additional costs and impact profitability [113]. - The company does not guarantee the continuation of existing business levels or the ability to secure a sufficient number of projects in the future [118]. Strategic Initiatives - The company aims to diversify its revenue streams due to the lack of capital-intensive projects in Malaysia's oil and gas sector, exploring civil and structural engineering opportunities in China [14]. - The company is focusing on expanding its customer base and ensuring higher quality oil products in the northern Chinese market [11]. - The company is actively seeking business opportunities in regions where COVID-19 is under control, indicating a strategic shift in its operational focus [11]. - The group plans to strengthen its operations in the South China market and expand into the Northern market, starting from Shandong [32][33]. - The company aims to establish a construction team for oil engineering projects and develop the oil engineering project market [44]. - The company is focused on acquiring a Malaysian indigenous engineering contractor to enhance its operational capabilities [127]. - The company is seeking future investment opportunities in petrochemicals, mineral resources, natural resources, financial investments, and oil logistics [178]. Financial Health - The current ratio decreased to 2.6 times in 2022 from 6.4 times in 2021, indicating a decline in liquidity [97]. - The debt-to-equity ratio increased to 7.3% in 2022 from 5.8% in 2021, reflecting a rise in leverage [97]. - The return on equity improved to 6.9% in 2022 from 0.4% in 2021, indicating better profitability relative to shareholders' equity [97]. - The group had total cash and cash equivalents of approximately 74.2 million MYR as of June 30, 2022, compared to 72.6 million MYR in the previous year [101]. - The group did not propose any final dividend for the fiscal year, consistent with the previous year [103]. - The group has no significant investments or capital asset plans for the upcoming year [106]. - The group reported a total employee cost of approximately 20.3 million MYR for the fiscal year, a slight decrease from 20.8 million MYR in the previous year [123]. - The company has 298 employees as of June 30, 2022, down from 375 in the previous year, indicating a reduction in workforce [123]. Management and Governance - Mr. Tang was appointed as Executive Director on February 4, 2021, bringing over ten years of experience in the oil trading industry [198]. - Mr. Tang has held various director and general manager positions in companies focused on mining investments and oil trading in West Africa since 2011 [198]. - Several companies associated with Mr. Tang have been dissolved, including Rank Projects Sdn Bhd and Vibrant Returns Sdn Bhd, both dissolved on August 18, 2010, and October 14, 2011, respectively [198]. - The document lists multiple companies where Mr. Tang served as a director, with the majority being dissolved or reaching their status date in 2017 [198]. Future Outlook - The company’s future performance will depend on its ability to secure new projects and control costs, with past performance not necessarily indicative of future results [118]. - A significant portion of the company’s revenue is derived from PIPC projects, and any loss of business relationships or failure to secure new projects related to PIPC could adversely affect operations and financial performance [119]. - The company aims to reserve more funds to meet potential clients' performance bond requirements and expand its workforce [124]. - The company is monitoring foreign currency risks and may consider hedging activities to mitigate the impact of currency fluctuations on financial performance [120].
TBKS HLDGS(01960) - 2022 - 年度财报