Financial Performance - Revenue for the three months ended August 31, 2023, was RM 7,228,000, a decrease of 20.8% compared to RM 9,125,000 in the same period of 2022[17]. - Gross profit for the same period was RM 1,874,000, down 10.2% from RM 2,087,000 year-over-year[17]. - Profit before taxation increased to RM 651,000, representing a 44.7% increase from RM 450,000 in the previous year[17]. - Profit for the period was RM 334,000, up 44.6% compared to RM 231,000 in the corresponding period of 2022[17]. - Total comprehensive income for the period was RM 362,000, slightly up from RM 350,000 year-over-year[19]. - Basic earnings per share for the period was 0.25 sen, compared to 0.20 sen in the same period last year, reflecting a 25% increase[19]. - Administrative expenses decreased to RM 1,182,000, down 30.7% from RM 1,707,000 in the previous year[17]. - Other income for the period was RM 233,000, a decrease of 34.9% from RM 358,000 in the same period of 2022[17]. - Finance costs increased to RM 35,000 from RM 15,000, indicating a rise of 133.3% year-over-year[17]. - Current period Malaysia corporate income tax was RM 317,000, up from RM 150,000 in the previous year, reflecting a 111.3% increase[45]. - The company did not recommend the payment of dividends for the three months ended August 31, 2023, consistent with the previous year[51]. Business Operations - The company operates primarily in the manufacturing and trading of precast concrete junction boxes and related services in Malaysia, as well as health supplemental products in Hong Kong[24]. - The company reported a decrease in cost of inventories recognized as an expense, which was RM 3,836,000 compared to RM 5,481,000 in the previous year, a reduction of 30%[50]. - The company did not report any sales from health supplement products during the current period, compared to RM 2,100,000 in the previous year[39]. - For the three months ended 31 August 2023, the Group's revenue decreased by approximately 20.79%, from RM9.1 million to RM7.2 million, primarily due to a decline in health supplement sales as a result of a change in business strategy[60][64]. - Revenue from the manufacturing and trading of precast concrete junction boxes slightly increased by approximately 3.45%, from RM6.6 million to RM6.9 million for the same period[65][70]. - The cost of sales decreased from approximately RM7.0 million to RM5.4 million, representing a decrease of approximately 23.93%, mainly due to reduced revenue from health supplement sales[73][76]. - Selling and distribution expenses increased by approximately RM13,000 or 4.76%, from RM273,000 to RM286,000[80][83]. - The sales of health supplements and sourcing services are temporarily suspended due to a change in business strategy[67][71]. - The Group recorded a net profit of approximately RM334,000 for the three months ended 31 August 2023, attributed to a focus on precast junction boxes with higher profit margins and better expense management[81][84]. Equity and Financial Position - As of August 31, 2023, the total equity of the company increased to RM 36,142,000, up from RM 35,175,000 as of May 31, 2023, reflecting a growth of approximately 2.75%[21]. - The retained losses decreased to RM 6,617,000 as of August 31, 2023, from RM 6,951,000 as of May 31, 2023, indicating an improvement in financial health[21]. - The company issued new ordinary shares worth RM 605,000 during the period, contributing to the increase in total equity[21]. - The Group had bank deposits pledged with banks totaling approximately RM1.2 million as of August 31, 2023, compared to RM1.1 million on August 31, 2022[113]. - The Group has no contingent liabilities as of August 31, 2023[115]. Compliance and Governance - The financial statements are prepared in accordance with International Financial Reporting Standards (IFRSs) and have been reviewed by the Audit Committee[29]. - The company has adopted all new and revised IFRSs relevant to its operations effective from June 1, 2023, with no significant changes to accounting policies reported[34]. - The company anticipates adopting future IFRSs when they become effective, assessing their potential impact on operations[35]. - The company has complied with the Corporate Governance Code provisions, except for the separation of roles between the chairman and CEO, which is deemed appropriate under current circumstances[126]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the three months ended August 31, 2023, and confirmed compliance with applicable standards and GEM Listing Rules[157]. Future Plans and Investments - The company intends to use the remaining funds for expanding production capacity and completing the establishment of the New Kulaijaya Plant by the end of 2023[93][97]. - The company plans to acquire a parcel of land in Southern Malaysia, with an intended use of HK$8.4 million from the proceeds by the end of 2023[93][95]. - The company is actively looking for suitable targets for expansion and will monitor internal and external factors to decide on the pace of production capacity expansion[97]. - The management is considering expanding the Group's production capacity in light of economic recovery[97][99]. - The company raised approximately HK$1.02 million through a subscription of new shares, completed on June 16, 2023, intended for the repayment of a promissory note, which has not yet been utilized[121]. Shareholding and Options - As of August 31, 2023, Mr. Loh Swee Keong holds 29,827,500 ordinary shares, representing approximately 21.89% of the issued share capital of the Company[104]. - Greater Elite Holdings Limited, beneficially owned by Mr. Law Fung Yuen Paul, holds 23,510,100 ordinary shares, accounting for approximately 17.25% of the Company's shareholding[110]. - Mr. Choy Sheung Ki Gary holds 10,323,000 ordinary shares, representing approximately 8.33% of the Company's shareholding[110]. - As of August 31, 2023, no other persons (excluding Directors or chief executives) have been reported with interests or short positions in the shares of the Company[112]. - The company has not granted, exercised, lapsed, or cancelled any share options under the Share Option Scheme[143]. - The maximum number of shares for options under the Share Option Scheme is capped at 10% of the total shares issued, which is 62,000,000 shares[133]. - The total number of shares that may be issued upon exercise of all outstanding options shall not exceed 30% of the shares in issue at any time[134]. - Any options granted to participants in a twelve-month period shall not exceed 1% of the shares in issue, requiring shareholder approval for any further grants[135].
万顺瑞强集团(08427) - 2024 Q1 - 季度财报