Financial Performance - For the six months ended February 28, 2023, the total revenue was approximately MYR 109.7 million, a decrease of about 17.7% compared to the same period in 2022[4] - The gross loss for the six months ended February 28, 2023, was approximately MYR 0.3 million, compared to a gross profit of approximately MYR 25.4 million for the same period in 2022[4] - The net loss recorded for the six months ended February 28, 2023, was approximately MYR 14.6 million[4] - For the three months ended February 28, 2023, the revenue was MYR 41.4 million, down from MYR 58.3 million in the same period in 2022[5] - The operating loss for the six months ended February 28, 2023, was approximately MYR 10.5 million, compared to an operating profit of MYR 11.3 million for the same period in 2022[5] - The company reported a basic and diluted loss per share of 1.83 sen for the six months ended February 28, 2023, compared to earnings of 0.81 sen for the same period in 2022[5] - The company reported a loss attributable to owners of the company of 14,628 thousand MYR for the six-month period ending February 28, 2023, compared to a profit of 6,465 thousand MYR in 2022[45] - The company reported a net loss of approximately 14.6 million MYR for the six months ended February 28, 2023, compared to a profit of 6.5 million MYR in 2022, with basic and diluted loss per share of 1.83 sen[84] Dividend and Equity - The board of directors did not recommend the payment of an interim dividend for the six months ended February 28, 2023[4] - The total equity as of February 28, 2023, was MYR 87.8 million, a decrease from MYR 101.6 million as of August 31, 2022[8] - The group did not declare an interim dividend for the six months ended February 28, 2023, compared to no dividend in the previous year[87] Assets and Liabilities - Total assets less current liabilities as of February 28, 2023, were MYR 130.5 million, down from MYR 150.1 million as of August 31, 2022[7] - The cash and cash equivalents as of February 28, 2023, were MYR 9.0 million, down from MYR 11.6 million as of August 31, 2022[7] - As of February 28, 2023, the group had current liabilities exceeding current assets by approximately RM 3.8 million, raising concerns about the group's ability to continue as a going concern[18] - The group's net current liabilities were approximately MYR 3.8 million as of February 28, 2023, compared to net current assets of MYR 15.0 million as of August 31, 2022[85] - The group's bank borrowings and lease liabilities were approximately MYR 131.1 million and MYR 18.2 million, respectively, as of February 28, 2023, compared to MYR 156.6 million and MYR 16.1 million as of August 31, 2022[85] Revenue Breakdown - Revenue from Malaysia for the six months ended February 28, 2023, was RM 62,616,000, down 21.7% from RM 79,891,000 in the same period of 2022[28] - Revenue from the Philippines for the same period was RM 41,524,000, a decrease of 13.8% compared to RM 48,175,000 in 2022[28] - Revenue from packaging production was approximately 79.4 million MYR, accounting for about 72.4% of total revenue, compared to 93.5 million MYR and 70.1% in 2022[63] - Revenue from insert production was approximately 24.0 million MYR, representing about 21.8% of total revenue, slightly up from 28.9 million MYR and 21.7% in 2022[64] - Total revenue from customer contracts for the six-month period decreased from 133,345 thousand MYR in 2022 to 109,686 thousand MYR in 2023, a decline of about 17.7%[33] Operational Performance - The group is focused on improving operational performance and cash flow through the development of a quality customer network and offering high-quality products[20] - The company continues to focus on strengthening its market position in the offset printing and packaging industry, with a significant presence in Malaysia and expansion into the Philippines[61] - The company is implementing cost-cutting measures, including reducing overtime and terminating contract staff, with expected impacts to materialize in the coming quarters[76] - The company plans to diversify customer industries, expand product lines, and repay bank loans as part of its business strategy[98] Cash Flow and Financing - For the six months ended February 28, 2023, operating cash flow was RM 32,545,000, a significant increase from RM 14,104,000 in the same period of 2022, representing a growth of approximately 130%[12] - The net cash and cash equivalents decreased by RM 1,247,000, compared to an increase of RM 4,462,000 in the previous year, indicating a shift in cash flow dynamics[12] - Financing costs rose to approximately 4.1 million MYR for the six months ended February 28, 2023, compared to 3.4 million MYR in 2022, primarily due to rising interest rates[81] Customer and Market Dynamics - Revenue contribution from the top five customers fell from approximately 91.4 million MYR for the six months ended February 28, 2022, to 66.2 million MYR for the same period in 2023, representing 68.5% and 60.4% of total revenue respectively[72] - Customer A's revenue decreased from 16,563 thousand MYR in 2022 to 11,752 thousand MYR in 2023 for the three-month period, representing a decline of approximately 29.5%[30] Compliance and Governance - The company has implemented all applicable amendments to the Hong Kong Financial Reporting Standards, which did not significantly impact the group's performance or financial position[22] - The management is currently evaluating the potential impact of new or revised accounting standards on the group's performance and financial position[24] - The audit committee, established in accordance with GEM listing rules, reviewed the financial information and internal control systems, although the interim financial statements have not yet been audited[126] - The company adhered to the corporate governance code, with the exception of the chairman's absence at the annual general meeting due to prior commitments[124] Future Plans and Investments - The company has completed the installation of low-dust facilities for medical and cosmetic packaging products in Malaysia[102] - The company has completed the installation of the production facility No. 2 in the Philippines and renovated the facility at Light Industry & Science Park III[105] - The company plans to expand its product line, with 23.3% of the net proceeds allocated for this purpose, amounting to HKD 14.2 million utilized as of February 28, 2023[107] - The company has not yet commenced the establishment of a new facility in northern Malaysia, which will be equipped with post-printing production equipment[105]
东骏控股(08383) - 2023 - 中期财报