Financial Performance - The company achieved a revenue of RM 510.4 million for the fiscal year 2023, an increase of RM 34.8 million (or 7.3%) compared to RM 475.6 million in fiscal year 2022[8]. - The net profit after tax for fiscal year 2023 was RM 20.0 million, a significant increase of RM 19.8 million compared to RM 0.2 million in fiscal year 2022[8]. - For the fiscal year 2023, the company's revenue reached approximately 510.4 million MYR, an increase from 475.6 million MYR in 2022, with factory projects contributing 61.6% and institutional, commercial, and/or residential projects contributing 26.9%[19]. - The gross profit increased from approximately 4.9 million MYR in 2022 to about 33.7 million MYR in 2023, with the gross profit margin rising from 1.0% to 6.6%[21]. - Other income, gains, and losses rose from approximately 2.1 million MYR in 2022 to about 5.9 million MYR in 2023, primarily due to increased interest from fixed deposits and gains from the sale of fixed assets[22]. - The company's profit attributable to owners was approximately 20.0 million MYR in 2023, a significant increase from 0.2 million MYR in 2022[28]. - The pre-tax profit for the fiscal year 2023 reached RM 27,109,000, compared to RM 1,080,000 in the previous year, marking a notable increase[200]. - The net profit for the fiscal year 2023 was RM 20,007,000, a significant rise from RM 233,000 in 2022[200]. - Total assets as of October 31, 2023, amounted to RM 348,170,000, an increase from RM 283,719,000 in 2022[200]. - Total liabilities increased to RM 194,907,000 in 2023 from RM 127,502,000 in 2022, reflecting a rise in financial obligations[200]. - The equity attributable to the company's owners was RM 153,263,000, slightly down from RM 156,217,000 in 2022[200]. - The group made charitable contributions of approximately RM 246,000 in the fiscal year 2023, a significant increase from RM 18,000 in 2022[199]. - The board did not recommend a final dividend for the fiscal year 2023, consistent with the previous year[196]. Project and Contract Management - The company completed 9 construction projects in fiscal year 2023, with a total contract value of approximately RM 235.1 million[13]. - As of October 31, 2023, the company has 6 ongoing construction projects with a total contract value of approximately RM 1.23 billion[16]. - The company submitted 9 tenders for factory projects, 1 for commercial projects, and 5 for institutional projects in fiscal year 2023, winning contracts worth approximately RM 473.3 million and RM 30.3 million respectively[16]. - The increase in revenue was primarily driven by the completion of a large factory project in fiscal year 2023[18]. - The company is focused on expanding its order book to supplement its business potential during challenging times[9]. - As of October 31, 2023, the company had an uncompleted engineering order book amounting to approximately 382.7 million MYR, down from 416.3 million MYR in 2022[20]. Economic Outlook and Challenges - The global economic growth is expected to decline from 3.5% in 2022 to 3.0% in 2023 and 2024, impacting the company's outlook[9]. - The company anticipates a challenging outlook for the next fiscal year due to the current economic uncertainties[9]. - The outlook for 2024 remains challenging, with the company focusing on project execution and seeking growth opportunities in its order book[29]. Financial Management and Resources - The company will continue to prudently manage its business operations and financial resources to maximize business potential[9]. - The company's current ratio was approximately 1.7 times as of October 31, 2023, compared to 2.1 times in 2022[33]. - The company maintained a healthy cash balance of approximately 57.4 million MYR as of October 31, 2023, down from 97.8 million MYR in 2022[32]. - The company has no outstanding bank borrowings as of October 31, 2023, with an unused bank overdraft facility of approximately 500,000 MYR[36]. - The total employee cost decreased from MYR 16.0 million in the 2022 fiscal year to MYR 13.5 million in the 2023 fiscal year, primarily due to the absence of project bonuses and a reduction in workforce[57]. - As of October 31, 2023, restricted bank deposits amounted to approximately MYR 13.8 million, serving as collateral for bank financing[53]. - The company faced no significant foreign exchange risk as its operations are primarily denominated in MYR[55]. - The company’s credit risk is concentrated, with approximately 84.2% of trade receivables and contract assets due from its top five customers[50]. Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules and has complied with all governance codes in the fiscal year 2023[89]. - The management team includes individuals with extensive experience in finance, engineering, and project management, contributing to the company's operational efficiency[84][85][86]. - The company is focused on maintaining high corporate governance standards to enhance shareholder value[89]. - The board has decided to change the intended use of the unutilized net proceeds to better allocate financial resources and enhance profitability[59]. - The company has adopted a code of conduct for directors' securities trading, with no violations reported during the fiscal year 2023[91]. - The board is responsible for formulating corporate policies, business strategies, and risk management, among other significant operational and financial matters[93]. - The company ensures compliance with corporate governance codes and provides independent professional advice to directors as needed[93]. - The board consists of seven male directors and two female directors, achieving gender diversity[125]. - The company aims to ensure that the number of independent non-executive directors is no less than three and one-third of the board[119]. - The board has met measurable targets under the board diversity policy as of the report date[122]. Risk Management - The company established a risk register to document identified risks, related risk ratings, mitigation plans, and key responsible persons[148]. - The board concluded that the risk management and internal control systems are effective and adequate for the fiscal year 2023[149]. - The group faces compliance risks, emphasizing the importance of adhering to legal regulations and industry standards[150]. - Financial risk management procedures enable the group to effectively manage its financial resources and obligations[151]. - Business risks are assessed based on the severity of consequences and likelihood of occurrence, focusing on material prices and labor market fluctuations[154]. - Human resource risks, such as reliance on key personnel, are addressed through succession planning processes[156]. Shareholder Communication - The company values communication with shareholders and investors, providing information through financial reports and annual general meetings[162]. - Shareholders are encouraged to participate in meetings and can appoint representatives to vote on their behalf[164]. - The company has adopted a shareholder communication policy effective from March 31, 2020, ensuring shareholders receive comprehensive and understandable information regarding financial performance and strategic goals[168]. - The company emphasizes the importance of maintaining shareholder privacy and will not disclose shareholder information without consent, except as required by law[173]. - The company has established designated contact points for shareholders and investors to facilitate inquiries[169]. - The board has reviewed the shareholder communication policy for its effectiveness in the fiscal year 2023[174].
RIMBACO(01953) - 2023 - 年度财报