Financial Performance - The company reported a significant revenue increase of 22.0% to RM 162.2 million compared to the previous year[7]. - Profit surged to RM 18.2 million, a substantial increase of 250.0% from RM 5.2 million in the prior year[7]. - Revenue for the fiscal year was approximately 162.2 million MYR, an increase of 29.3 million MYR or 22.0% compared to the previous year[15]. - The energy efficiency segment generated revenue of approximately 49.8 million MYR, a significant increase from zero in the previous year, driven by major projects like Changi Airport Terminal 2[14]. - The flexible textile segment reported revenue of approximately 36.9 million MYR, an increase of 8.6 million MYR or 30.4% from the previous year, due to increased sales in the Asia-Pacific, North America, and Europe[12]. - The production segment's revenue was approximately RM 112.1 million, a decrease of about RM 3.8 million or 3.3% from RM 115.9 million in the previous year[11]. - The production segment accounted for approximately 69.2% of total revenue, down from 87.2% in the previous year[16]. - Gross profit decreased to approximately 41.4 million MYR, a reduction of 4.8 million MYR or 10.4% compared to the previous year, primarily due to the impact of the sold securities brokerage business[19]. - Other net income increased by 10.5 million MYR or 126.5%, reaching approximately 2.2 million MYR, due to gains from the sale of an associate company[20]. Market Strategy and Outlook - The company aims to expand its market share in Malaysia by leveraging the experience and expertise of its Singapore team[7]. - The outlook for the energy efficiency industry remains optimistic, despite a cautious stance on the manufacturing sector due to anticipated global economic slowdown[8]. - The company continues to seek growth opportunities and aims to deliver returns to shareholders despite recent challenges[8]. - The company plans to continue operations under constraints, reassessing market demand and pricing strategies while adjusting cost structures to maintain competitiveness amid economic slowdown[50]. - Global energy consumption is anticipated to continue increasing in 2023, driven by high energy prices and potential reductions in Russian gas and oil supplies, which will heighten the urgency for energy efficiency initiatives[50]. - The company believes that government policies aimed at reducing greenhouse gas emissions and promoting energy efficiency will positively contribute to its performance[50]. Operational Efficiency - The company is focused on streamlining operations and minimizing business disruptions in collaboration with customers and suppliers[8]. - Selling and distribution costs decreased by approximately 3.6 million MYR or 52.2% to 3.3 million MYR, mainly due to the closure of retail operations[21]. - Administrative expenses were 23.3 million MYR, a decrease of 0.8 million MYR or 3.3% from the previous year, attributed to the sale of the securities brokerage business[22]. - The gross margin decreased from 34.8% to 25.5%, influenced by increased labor and manufacturing overhead costs in the energy efficiency segment[19]. Corporate Governance and Management - The company has a strong management team with extensive experience in the automotive and manufacturing sectors, including over 30 years in sales and marketing management[59]. - The board of directors includes experienced individuals with significant backgrounds in various industries, contributing to the company's long-term strategic planning[56]. - The company has been focusing on strategic planning and business development since November 2013, with a significant emphasis on operational management in production and energy efficiency sectors[61]. - The company has a structured approach to corporate governance, with established committees for audit, remuneration, and nominations to ensure accountability and transparency[66]. - The board comprises both executive and independent non-executive directors, ensuring a balance of expertise and independent judgment[156]. - The company has established a remuneration committee in accordance with GEM listing rules to review compensation policies and related matters for directors and senior management[117]. Risk Management - The company faces various risks including operational, market, liquidity, credit, and regulatory risks, and has implemented a risk management policy to address these[99]. - The company has a robust risk management framework to address major risks and uncertainties[78]. - The risk management committee has been formed to monitor and assess international sanction risks, with no identified threats to the group as of the report date[124]. - The company must maintain multiple licenses and permits to operate in Malaysia, Vietnam, and China, which are subject to approval and verification by relevant authorities[100]. Shareholder Information - The company does not recommend the payment of a final dividend for the fiscal year[82]. - The company's distributable reserves as of December 31, 2022, amounted to RM 92.1 million, an increase from RM 69.0 million in 2021[89]. - The company has not purchased, sold, or redeemed any of its listed securities during the fiscal year[86]. - The company has a loan agreement with PRG Holdings for a maximum principal amount of 5 million MYR (approximately 8.334 million HKD), generating interest income at an annual rate of 6%[137]. Employee and Workplace Culture - Employee costs for the fiscal year were approximately MYR 33.7 million, an increase from MYR 27.8 million in 2021, with the number of employees rising to 623 from 515[36]. - The company focuses on employee welfare, providing a fair and diverse work environment, and regularly reviews compensation and benefits[106]. - The company is committed to identifying and appointing at least one female director by December 31, 2024, to enhance gender diversity on the board[174]. - The employee gender ratio was approximately 67.2% male to 32.8% female, an increase from 62.2% male to 37.8% female the previous year[175]. Environmental and Social Responsibility - The company has established an environmental policy to guide daily operations towards higher environmental standards[97]. - The company has been actively involved in energy efficiency business as part of its operations[80]. - The company has a strong commitment to compliance and risk management, with dedicated committees overseeing these areas since November 2019[64]. Acquisitions and Investments - The group completed the acquisition of the remaining 62.75% equity in ESGL for HKD 58,191,840 (approximately MYR 31,423,594) on August 29, 2022, making ESGL a wholly-owned subsidiary[30]. - The company has completed the acquisition of all issued shares of West Cow on October 15, 2020, and subsequently sold it in March 2021[46]. - The company has utilized approximately MYR 6.5 million (equivalent to HKD 18.9 million) from the IPO proceeds for the purchase of machinery to expand the production capacity of narrow elastic webbing, elastic yarn, and safety belt webbing[44].
飞霓控股(08480) - 2022 - 年度财报