Financial Performance - The company's revenue increased to MYR 132.9 million, a 33.8% increase compared to the previous year[12]. - The pre-tax profit was MYR 7.5 million, indicating a return to profitability as demand and production capacity utilization improved[12]. - The group's revenue for the fiscal year was approximately 132.9 million MYR, an increase of about 33.6 million MYR or 33.8% compared to the previous year[30]. - Revenue from the production segment was approximately 115.9 million MYR, an increase of about 20.2 million MYR or 21.1% compared to the previous year[30]. - The group's gross profit was approximately 46.2 million MYR, an increase of about 17.0 million MYR or 58.2% compared to the previous year[33]. - The profit for the fiscal year was 5.2 million MYR, a significant recovery from a loss of 32.2 million MYR in 2020, primarily driven by a profit of 99 million MYR from the securities brokerage business[40]. - The company reported a total revenue of 69.0 million MYR as of December 31, 2021, an increase from 65.4 million MYR in 2020[177]. Revenue Breakdown - The revenue from elastic textiles, webbing, and other products accounted for approximately 24.4%, 40.6%, and 35.0% of total production revenue, respectively[30]. - The revenue from webbing increased to approximately 47.1 million MYR, a rise of about 10.2 million MYR or 27.6% compared to the previous year[23]. - The revenue from other products was approximately 40.5 million MYR, an increase of about 9.3 million MYR or 29.8% compared to the previous year[26]. - The retail segment's revenue was approximately 1.8 million MYR, a decrease of about 1.1 million MYR or 37.9% due to the closure of the Singapore retail store[28]. Operational Challenges and Risks - A provision for impairment loss of MYR 18.3 million was made for production units in China due to strict zero-COVID policies[12]. - The board remains cautious about the operational environment, acknowledging ongoing risks from COVID-19 and geopolitical tensions[16]. - The company faces foreign exchange risk due to its USD revenue from international business, and it may consider hedging measures if a depreciation of USD against MYR and VND is anticipated[60]. - The global economic situation and geopolitical risks significantly impact the company’s operations, particularly in sectors such as apparel, food packaging, and automotive[195]. Strategic Initiatives - The board decided to terminate the franchise business with Philip Plein to reduce further capital outflow[13]. - The company acquired a 37.25% stake in Energy Solution Global Limited, aiming to enter the green economy sector[13]. - The company is exploring new growth areas, particularly in the green economy driven by global climate change efforts[13]. - The company plans to allocate approximately HKD 13.5 million (around MYR 7.3 million) from unutilized listing proceeds for the acquisition of 100% of the issued shares of Xiniu Securities Co., Ltd. for a cash consideration of HKD 8.5 million (approximately MYR 4.5 million)[62]. - The company is considering strategic acquisitions to enhance its product offerings, with a budget of $100 million for potential deals[148]. Financial Management and Investments - The company's financial management is overseen by the Chief Financial Officer, who has over 15 years of experience in financial management and auditing[154][158]. - The company has invested approximately MYR 10.3 million (equivalent to HKD 18.9 million) in expanding production capacity by purchasing new machinery for elastic webbing and related products[66]. - The company allocated MYR 1.1 million for upgrading IT systems, with an actual usage of MYR 1.0 million by December 31, 2021[74]. - The company has a remaining unutilized amount of MYR 1.9 million as of December 31, 2021, which is expected to be used by 2022[74]. Corporate Governance and Compliance - The group has a compliance officer and risk management committee member appointed on November 6, 2019[105]. - The group emphasizes compliance with internal policies and legal regulations in its operations in Malaysia and Vietnam[99]. - The company has adopted a share option scheme on September 20, 2017, aimed at incentivizing selected participants for their contributions to the group[178]. Future Outlook - The global economic outlook for 2022 is expected to recover rapidly, but the ongoing Russia-Ukraine crisis poses significant risks to supply chains and may accelerate cost pressures[80]. - The company plans to continue monitoring the business environment closely and adjust its expansion plans as necessary due to uncertainties caused by the COVID-19 pandemic and geopolitical tensions[80]. - The management team emphasized the importance of sustainability initiatives, committing to reduce carbon emissions by 30% over the next five years[151].
飞霓控股(08480) - 2021 - 年度财报