Financial Performance - Air freight revenue for the fiscal year was approximately RM 17.9 million, an increase of about 3.9% compared to RM 17.3 million in the previous year[10]. - Sea freight services generated the largest revenue source at approximately RM 30.5 million, representing a 15.1% increase from RM 26.5 million in the previous year[12]. - Revenue from freight and related services was approximately RM 18.8 million, down from RM 24.8 million in the previous year[13]. - The logistics services segment generated total revenue of approximately 68.0 million MYR for the fiscal year, a decrease of about 1.5% compared to 69.0 million MYR in the previous year[22]. - Revenue from Hong Kong logistics services was approximately 18.0 million MYR, down 24.2% from 23.8 million MYR in the previous year, accounting for about 20.3% of total revenue[16]. - The company recorded revenue of approximately 20.9 million MYR from the manufacturing and trading of plastic products, with a gross profit of about 2.3 million MYR and a gross profit margin of 11.2%[26]. - The gross profit from integrated logistics services decreased to 8.0 million MYR, a decline of about 9.0% from 8.8 million MYR in the previous year[25]. - The gross profit margin for integrated logistics services fell from 12.7% to 11.8% due to the combined effects of revenue and cost changes[25]. - The group recorded a loss of approximately RM 11.6 million for the fiscal year, compared to a loss of RM 1.6 million in the previous year, resulting in a loss per share of 4.12 sen[31]. - Administrative expenses for the fiscal year amounted to RM 17.7 million, compared to RM 14.7 million in the previous year[27]. - Financing costs for the fiscal year were approximately RM 0.9 million, up from RM 0.8 million in the previous year[29]. Logistics and Business Strategy - The company focuses on enhancing its market position by exploring business opportunities in logistics services, particularly in cross-border e-commerce between China and the global market[7]. - The logistics services provided include air and sea freight agency services, warehousing, and supply chain management[6]. - The company aims to offer cost-effective and comprehensive services to meet customer needs despite intense competition in the logistics industry[7]. - The company plans to expand its logistics business in Hong Kong, aiming to leverage its advantages over China and explore new business opportunities with international clients[21]. - The company has reallocated approximately 15.7 million HKD originally intended for expansion in Malaysia to establish logistics operations in Hong Kong, which is expected to positively impact future business growth[16]. - The company has established an operational team in Hong Kong and purchased order management and fulfillment systems to support e-commerce activities[60]. - The company has established a business development unit to analyze market trends and enhance competitiveness through big data analysis[188]. Corporate Governance - The company is committed to ensuring the accuracy and completeness of the information provided in its reports, as confirmed by the board of directors[2]. - The board of directors held eleven meetings during the fiscal year to discuss and approve various financial results and strategic directions[86]. - The board is responsible for overseeing the group's business affairs and overall performance management[75]. - The company has appointed three independent non-executive directors, constituting over one-third of the board, ensuring independent judgment[81]. - The board has established a set of trading rules for directors regarding the company's securities transactions[74]. - The company has implemented a risk management and internal control system, which was reviewed during board meetings[86]. - The board is tasked with approving significant contracts, acquisitions, investments, and capital expenditures[76]. - Continuous professional development is encouraged for all directors, with training costs covered by the company[85]. - The company has made insurance arrangements to provide adequate protection for directors facing legal liabilities[82]. - The board's composition includes a balanced mix of executive and non-executive directors to ensure effective decision-making[79]. - The board of directors has adopted a diversity policy to ensure a range of skills, experiences, and perspectives are represented, focusing on gender, age, cultural background, and professional experience[90]. - The audit committee held 5 meetings during the fiscal year to review the group's consolidated performance for various periods, including the year ending December 31, 2020[100]. - The audit committee is composed entirely of independent non-executive directors, ensuring objectivity in oversight[94]. - The company emphasizes the importance of independent auditors and has revised its governance code to extend the cooling-off period for former partners to two years[96]. - The company ensures that the internal audit function has sufficient resources and appropriate status within the organization[102]. - The audit committee ensures timely responses from the board regarding matters raised by external auditors[102]. - The company is committed to maintaining a balanced skill set and diverse perspectives on the board to meet business needs[110]. - The board of directors has reviewed and fulfilled its corporate governance responsibilities during the fiscal year[114]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to strict environmental standards and enhancing employee awareness of safety and health[144]. - The report adheres to the principles of importance, quantifiability, consistency, and balance as outlined in the ESG reporting guidelines[146]. - The company aims to continuously improve its services and processes to minimize environmental impact[144]. - The company encourages stakeholder feedback on its ESG policies and performance[149]. - The company promotes "green logistics" initiatives, including the use of low-emission vehicles and recyclable packaging materials[155]. - The environmental, social, and governance (ESG) working group reports biannually to the board on the company's ESG performance and systems effectiveness[154]. - The company adheres to the Malaysian Environmental Quality Act and related regulations to minimize operational environmental impacts[158]. - Total greenhouse gas emissions decreased from 1,576.46 kg in 2020 to 1,295.61 kg in 2021, representing a reduction of approximately 17.8%[159]. - Nitrogen oxide emissions reduced significantly from 6,043.24 kg in 2020 to 4,470.55 kg in 2021, a decrease of about 26%[159]. - The company reported a total of 331 tons of non-hazardous waste in 2021, up from 27 tons in 2020, indicating a significant increase in waste management efforts[159]. - Electricity consumption increased from 331,720 kWh in 2020 to 1,298,491 kWh in 2021, reflecting a rise of approximately 290%[162]. - Water usage decreased from 7,455 cubic meters in 2020 to 6,151 cubic meters in 2021, a reduction of about 17.4%[162]. - The company continues to implement policies aimed at reducing resource consumption, including the use of high-performance equipment and streamlined operations[160]. - The company has not reported any incidents related to health and safety, advertising, labeling, or privacy issues that significantly impact its operations this year[195]. Employee and Community Engagement - The group employed a total of 381 full-time employees as of December 31, 2021, an increase from 198 in 2020[53]. - Total employee compensation for the fiscal year reached 12.3 million MYR, slightly down from 12.5 million MYR in 2020[53]. - The total number of employees as of December 31, 2021, is 381, with 51.7% under 30 years old and 56.7% female[171]. - Employee turnover rate for 2021 is 8.6%, with the highest rate of 9.8% in the 31-40 age group[172]. - The company has implemented a SHES policy to ensure a safe and healthy work environment, focusing on safety, health, and environmental standards[173]. - The company collaborates with local universities to provide training and development opportunities for interns, offering daily allowances and potential full-time positions[170]. - The company is committed to gender equality and aims to balance the gender ratio at all levels of employment[184]. - The company has established an employee retention plan tailored to attract and retain talent, with performance reviews linked to key performance indicators[167]. - A total of 2,496 hours of training were completed by employees in 2021, with an average training time of 10.66 hours for general staff and 13.17 hours for senior management[181][182]. - Female employees accounted for 33% of new hires in 2021, surpassing the initial target of 30%[184]. - The company reported zero work-related fatalities and zero work injuries for the year 2021, maintaining a 0% incident rate[178]. - All employees received training in safety awareness, with 100% participation across all employee categories[182]. Risk Management - The group faces various risks including operational, market, liquidity, credit, and regulatory risks, with established risk management policies in place[41]. - The group relies heavily on information technology for its logistics services, with potential risks associated with system failures impacting operations and reputation[49]. - The company has implemented a comprehensive quality assurance policy to diversify its products and services[187]. - The management team has received training in risk management and ISO 9001 quality management systems[193]. - The company has not encountered any violations of the Anti-Corruption Act or related laws during the year[197]. - The company is dedicated to maintaining a corporate culture of integrity to uphold its corporate image[196].
盛良物流(08292) - 2021 - 年度财报