Financial Performance - Total revenue for the fiscal year ended August 31, 2022, was approximately MYR 271.4 million, compared to MYR 257.2 million for the previous year, representing an increase of 5.0%[13] - The company's gross profit decreased by approximately 12.3% to RM 41.7 million for the fiscal year ending August 31, 2022, with a gross margin of approximately 15.4%, down from 18.5% in the previous year[23] - Total revenue for the fiscal year increased by approximately 5.5% or RM 14.2 million compared to the previous year, primarily due to increased sales in packaging and inserts, despite a decrease in brochure sales[21] - The group's net profit for the fiscal year was RM 5.9 million, a decrease from RM 7.3 million in 2021, resulting in basic and diluted earnings per share of 0.73 sen compared to 0.91 sen in 2021[36] - Other operating income for the fiscal year was approximately RM 3.1 million, up from RM 2.6 million in 2021, mainly due to increased sales of scrap materials[24] Revenue Breakdown - Revenue from packaging products accounted for 74.6% of total sales in 2022, up from 72.6% in 2021, indicating a strong market position[13] - The packaging segment is the largest business area for the company, generating approximately RM 202.5 million and RM 186.6 million in revenue for the fiscal years ending August 31, 2022, and 2021, respectively, accounting for about 74.6% and 72.6% of total revenue[14] - The production of inserts, the second largest business segment, generated revenue of approximately RM 54.9 million and RM 48.5 million for the fiscal years ending August 31, 2022, and 2021, representing about 20.2% and 18.9% of total revenue[16] - Revenue from the production of brochures decreased to approximately RM 13.3 million in 2022 from RM 22.1 million in 2021, accounting for about 4.9% and 8.5% of total revenue[17] Operational Challenges - The company anticipates challenges in the 2022/2023 fiscal year due to ongoing pandemic impacts and geopolitical conflicts affecting the global economy[19] - The company has implemented strategies to mitigate the impact of COVID-19, including developing new customer relationships and streamlining production processes[10] - The company has maintained a proactive approach to monitor potential disruptions caused by the pandemic and other issues[10] Cost and Expenses - The cost of sales increased by approximately 9.5% or RM 20.0 million, driven by rising material costs due to a stronger US dollar and inflation[22] - Distribution expenses increased by approximately 2.9% to RM 13.6 million, primarily due to rising transportation costs in response to increased customer demand[27] Assets and Liabilities - As of August 31, 2022, the group's current assets net value was approximately RM 15.0 million, significantly up from RM 0.2 million in 2021, while cash and cash equivalents were RM 11.6 million, down from RM 12.1 million in 2021[38] - The group's bank borrowings and lease liabilities were approximately RM 156.6 million and RM 16.1 million, respectively, compared to RM 151.0 million and RM 21.8 million in 2021[38] - The capital debt ratio was approximately 67.8%, slightly improved from 68.5% in 2021[38] Employee and Management - Employee costs, including directors' remuneration, were approximately RM 38.1 million, an increase from RM 37.6 million in 2021, with a total of 974 full-time employees as of August 31, 2022[49] - The company has a performance-based compensation structure for employees, including annual discretionary bonuses and monthly incentives based on sales targets[167] - The company contributes to mandatory retirement plans for eligible employees in Malaysia, the Philippines, and Hong Kong, with contributions calculated as a percentage of employees' monthly salaries[176] Corporate Governance - The company has adopted a new corporate governance code effective from January 1, 2022, which will apply to the next fiscal year's corporate governance report[74] - The board consists of 5 members, including 2 executive directors and 3 independent non-executive directors, ensuring a balanced composition for independent judgment[81] - The company has established risk management policies to address operational, market, liquidity, credit, and regulatory risks[45] - The company has adopted a board diversity policy to ensure a range of skills, experiences, and perspectives are represented, supporting business strategy execution[96] Risk Management - The group faced various operational risks, including reliance on the availability of raw materials, which is managed through good supplier relationships[45] - The company has foreign exchange risks due to operations in Malaysia and the Philippines, with management monitoring and considering hedging activities to mitigate these risks[48] - The company has established compliance and risk management policies to ensure adherence to legal and regulatory requirements across its operations[166] Shareholder Information - The group has a distributable reserve of approximately 56.5 million MYR as of August 31, 2022[144] - The company has not engaged in any share buybacks or repurchases during the financial year[147] - The company confirms compliance with the non-competition agreement established with its controlling shareholders during the fiscal year[186] Environmental and Social Responsibility - The company has adopted policies to prevent pollution and comply with environmental laws and regulations[162] - The company’s subsidiaries have obtained ISO 14001:2015 certification for environmental management systems[161] - The company made a donation of 10,000 MYR to PIBG SJK(C) FOON YEW 3 during the fiscal year[192]
东骏控股(08383) - 2022 - 年度财报