Financial Performance - Revenue for the six months ended December 31, 2022, was RM 301,962,000, a decrease of 8.1% from RM 328,682,000 in the same period of 2021[4] - Gross profit for the same period was RM 12,240,000, down 9.6% from RM 13,542,000 year-on-year[4] - Net profit for the period was RM 2,613,000, a decline of 33.1% compared to RM 3,911,000 in the previous year[6] - Total comprehensive income for the period was RM 860,000, significantly lower than RM 4,935,000 in the prior year[6] - Basic and diluted earnings per share were both RM 0.24 cents, down from RM 0.39 cents in the previous year[6] - The company reported a foreign exchange loss of RM 1,727,000 during the period, impacting overall comprehensive income[9] - The income tax expense for the six months ended December 31, 2022, was RM 2,047,000, an increase of 14.2% compared to RM 1,793,000 for the same period in 2021[50] - Profit attributable to owners for the period was approximately 2.4 million MYR, down from 3.9 million MYR in the previous year, with earnings per share at 0.24 sen compared to 0.39 sen[124] Assets and Liabilities - Non-current assets decreased to RM 22,634,000 from RM 25,340,000 as of June 30, 2022[7] - Current assets decreased to RM 169,461,000 from RM 215,824,000 as of June 30, 2022[7] - Total liabilities decreased to RM 36,507,000 from RM 83,922,000 as of June 30, 2022[8] - Total equity increased to RM 153,699,000 from RM 152,839,000 as of June 30, 2022[8] - Trade receivables as of December 31, 2022, amounted to RM 78,341,000, significantly higher than RM 42,895,000 as of June 30, 2022[58] - The company's contract assets decreased to RM 24,697,000 as of December 31, 2022, from RM 30,046,000 as of June 30, 2022, due to a reduction in ongoing construction projects[62] Cash Flow - For the six months ended December 31, 2022, the net cash used in operating activities was (25,785) thousand MYR, compared to a net cash inflow of 6,692 thousand MYR in the same period of 2021[13] - The net cash generated from investing activities was 2,064 thousand MYR, a decrease from 8,095 thousand MYR in the previous year[15] - The net cash used in financing activities was (3,691) thousand MYR, compared to (4,759) thousand MYR in the same period of 2021[13] - The cash and cash equivalents decreased by 27,412 thousand MYR, while the cash and cash equivalents at the end of the period were 45,370 thousand MYR, down from 83,643 thousand MYR in the previous year[15] Segment Performance - The company has four reportable segments as of December 31, 2022, compared to three in the previous year[28] - Contract revenue recognized for the six months ended December 31, 2022, was 39,542 thousand MYR, significantly higher than 24,056 thousand MYR in the same period of 2021, indicating a growth of 64.4%[42] - The company reported a decrease in oil and related product trade revenue to 262,420 thousand MYR for the six months ended December 31, 2022, down from 304,626 thousand MYR in the previous year, a decline of 13.9%[42] - The revenue from civil and structural engineering in Malaysia decreased by approximately 3.3% from RM 24.1 million in the previous year to RM 23.3 million in the current period[84] - The revenue from civil engineering projects fell from RM 21.6 million to RM 21.3 million, a decrease of about 1.6%[86] - The revenue from construction projects decreased significantly by approximately 17.9%, from RM 2.4 million to RM 2.0 million[87] - The revenue from civil and structural engineering in China for the period was approximately 16.3 million MYR, compared to zero in the previous year[92] Expenses - The total employee costs for the six months ended December 31, 2022, were 11,864 thousand MYR, slightly up from 11,313 thousand MYR in the same period of 2021, reflecting an increase of 4.9%[48] - The administrative expenses for the six months ended December 31, 2022, were 8,797 thousand MYR, compared to 7,171 thousand MYR in the same period of 2021, indicating an increase of 22.7%[34] - The group incurred related party transactions amounting to RM 507,000 for subcontracting fees, a significant increase from RM 55,000 in the previous year[18] - Sales and distribution expenses for the period amounted to approximately 0.9 million MYR, an increase from 0.7 million MYR in the previous year[117] - Administrative expenses rose from approximately 7.2 million MYR to about 8.8 million MYR, primarily due to increased employee costs and depreciation[118] - Financing costs recorded were approximately 0.4 million MYR for the current period, compared to 0.2 million MYR in the previous year[119] Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has confirmed compliance throughout the period[164] - The audit committee, consisting of three independent non-executive directors, reviewed and approved the interim financial results, ensuring compliance with applicable accounting standards[166] - The board is committed to good corporate governance practices to enhance shareholder value and will regularly review its governance functions[164] Future Outlook - The company expects to face challenges in 2023 due to rising costs, labor supply issues, and intense competition in contract awards[99] - The company plans to explore opportunities in East and West Malaysia and neighboring countries while maintaining a cautious approach to new projects[99] - The company anticipates a gradual recovery in the global market as COVID-19 measures are relaxed, which may positively impact future performance[146] - The management plans to gradually resume the utilization of the remaining net proceeds in response to market changes as COVID-19 restrictions are eased in China and Malaysia[146]
TBKS HLDGS(01960) - 2023 - 中期财报