Financial Performance - The group's revenue decreased by approximately RM 458.0 million or 55.5% to about RM 367.9 million for the fiscal year ending June 30, 2023, compared to approximately RM 825.9 million in the previous year[5]. - The group recorded a loss attributable to shareholders of approximately RM 8.7 million, compared to a profit of approximately RM 10.4 million in the previous year, resulting in a loss per share of 0.87 sen[6]. - Revenue from oil and related products trade in China decreased significantly by approximately 63.9% to about 276.2 million MYR for the fiscal year, down from approximately 765.9 million MYR[30]. - The group's total equity attributable to owners was approximately MYR 143.0 million, down from MYR 151.6 million in 2022[65]. - Revenue from the top five customers accounted for approximately 83.5% of total revenue for the year ended June 30, 2023, down from 91.4% in the previous year[74]. - The company has no significant contingent liabilities or pending litigation as of June 30, 2023[69]. - The company has no major investment or capital asset plans for the upcoming year[68]. - The group did not declare a final dividend for the current fiscal year, consistent with the previous year[62]. Revenue Breakdown - Revenue from civil and structural engineering in Malaysia and China accounted for approximately 24.9% and 75.1% of total revenue, respectively[5]. - Revenue from civil and structural engineering in Malaysia increased by approximately RM 31.7 million or 52.8%, while revenue from oil and related products trade in China decreased significantly by approximately RM 489.7 million or 63.9%[5]. - The group's revenue from civil and structural engineering increased by approximately 11.2% from about 45.8 million MYR in the fiscal year ending June 30, 2022, to about 50.9 million MYR in the current fiscal year[18]. - Revenue from civil engineering projects slightly increased by about 1.5% from approximately 43.2 million MYR to about 43.9 million MYR, driven by the completion of three projects and ongoing work on five projects[21]. - Revenue from construction projects surged by approximately 154.9%, rising from about 2.6 million MYR to about 6.6 million MYR, mainly due to two new projects and early completion of another[22]. - The group's revenue from civil and structural engineering in China increased significantly by 187.0%, from approximately 14.2 million MYR to about 40.8 million MYR, due to several ongoing projects[25]. - Revenue from civil and structural engineering in Malaysia increased by approximately 11.2% to about 50.9 million MYR for the fiscal year, up from approximately 45.8 million MYR[33]. Operational Challenges - The group faced multiple challenges including project delays, labor supply issues, and rising costs, impacting performance in the Malaysian civil and structural engineering sector[17]. - The competitive landscape for contract awards in Malaysia remains intense, affecting the overall performance of the civil and structural engineering sector[17]. - The group faced challenges in the oil and related products trade due to regional COVID-19 outbreaks and a decline in demand for refined oil products[44]. - The company has faced challenges in the construction sector, including limited supply of materials and increased prices, which have delayed project timelines and contract awards[88]. Strategic Focus and Future Plans - The company anticipates challenges in the fiscal year 2023/2024 due to geopolitical conflicts, rising costs, and intense competition for contracts in Malaysia[9]. - The group plans to continue focusing on general construction and renovation projects in China and will explore opportunities in East and West Malaysia and neighboring countries[10]. - The company aims to enhance its oil trading operations and strengthen its risk resilience by collaborating with large state-owned enterprises[12]. - The group will continue to improve operational efficiency and reduce operational risks through the promotion of an enterprise resource planning system[12]. - The board will regularly review existing businesses and explore new investment opportunities, including energy-related processing and logistics[11]. Cost and Profitability - The cost of sales for civil and structural engineering in Malaysia rose by approximately 9.9% to about 49.0 million MYR, compared to approximately 44.6 million MYR the previous year[36]. - Gross profit for civil and structural engineering in Malaysia increased by approximately 60.1% to about 2.0 million MYR, with a gross margin rising from approximately 2.7% to 3.9%[37]. - The cost of sales for civil and structural engineering in China was approximately 36.8 million MYR, up from approximately 13.3 million MYR the previous year[40]. - Gross profit for civil and structural engineering in China was approximately 3.9 million MYR, with a gross margin of about 9.6%, up from 6.1% the previous year[41]. - The gross profit for oil and related products trading was approximately MYR 8.3 million, with a gross margin of 3.0%, compared to MYR 28.8 million and a gross margin of 3.8% in 2022[47]. Human Resources and Employee Development - As of June 30, 2023, the group employed 510 staff, an increase from 298 in 2022, with employee costs amounting to approximately MYR 28.0 million, up from MYR 20.3 million in 2022[82]. - The group aims to expand its workforce by recruiting various managerial and engineering positions to support its operational needs[86]. - The group is committed to enhancing employee training and development to improve performance and morale, recognizing employees as valuable assets[82]. Corporate Governance - The company is committed to good corporate governance to enhance shareholder value and ensure effective accountability[114]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, with their specific terms of reference available on the respective websites[119]. - The company has adopted a board diversity policy, focusing on gender, age, cultural and educational background, professional qualifications, skills, knowledge, and industry experience[124]. - The company has complied with all applicable corporate governance codes during the fiscal year[115]. - The board regularly reviews corporate governance functions to adapt to changing standards and improve governance practices[115]. Risk Management - The company has implemented risk management policies to address identified potential risks, including environmental, social, and governance risks[168]. - The board believes that the internal control system is adequate in terms of integrity, feasibility, and effectiveness[170]. - The company has engaged an independent internal control consultant to review its financial procedures and internal control systems during the fiscal year[170]. - The group has appointed Mr. HP Tan as the compliance officer to oversee compliance with applicable laws and regulations[171]. Shareholder Communication - The company has established a communication policy to facilitate effective communication with shareholders and stakeholders[184]. - The annual general meeting was held on December 14, 2022, providing shareholders the opportunity to communicate directly with the board[185].
TBKS HLDGS(01960) - 2023 - 年度财报