Revenue Performance - Revenue increased by approximately 7.4 million Ringgit or 6.2% to about 126.3 million Ringgit for the six months ended December 31, 2023, compared to approximately 118.9 million Ringgit for the same period in 2022[1]. - Revenue from offshore construction services accounted for approximately 91.9% of total revenue, increasing by about 18.8 million Ringgit or 19.3% to approximately 116.1 million Ringgit[2]. - Revenue from offshore transportation increased by approximately 24.9 million Ringgit or 27.8% to about 114.5 million Ringgit, primarily due to a significant increase in sand transportation volume from Singapore[3]. - Revenue from building and infrastructure services decreased by approximately 3.0 million Ringgit or 27.5% to about 7.9 million Ringgit, mainly due to reduced workload after the completion of several contracts[4]. Profitability and Loss - Gross profit decreased by approximately 6.5 million Ringgit or 72.2% to about 2.5 million Ringgit, with gross margin dropping from approximately 7.6% to about 2.0%[8]. - The company reported a loss attributable to owners of approximately 3.0 million Ringgit for the six months ended December 31, 2023, compared to a profit of approximately 3.5 million Ringgit for the same period in 2022[16]. - The group incurred a pre-tax loss of 2.486 million MYR for the six months ended December 31, 2023[127]. - The net loss for the period was MYR 3,240 thousand, a significant decrease from a profit of MYR 3,622 thousand in the same period last year[182]. - The total comprehensive loss for the period was MYR 3,752 thousand, compared to a total comprehensive income of MYR 4,701 thousand in the previous year[182]. Financial Position - As of December 31, 2023, the company had cash and cash equivalents of approximately 75.0 million MYR, a decrease from 77.5 million MYR as of June 30, 2023[20]. - The company's bank loans amounted to approximately 12.4 million MYR as of December 31, 2023, down from 14.2 million MYR as of June 30, 2023, with an interest rate of 7.2%[21]. - The current ratio decreased from approximately 2.1 times as of June 30, 2023, to approximately 1.8 times as of December 31, 2023, primarily due to increased subcontracting costs and reduced gross profit margin[21]. - The debt-to-equity ratio improved from approximately 10.9% as of June 30, 2023, to approximately 10.0% as of December 31, 2023, due to a reduction in total bank loans and lease liabilities[21]. - The group’s total liabilities, including trade and other payables, are expected to be settled within one year, except for retention sums of approximately 1,002 thousand Ringgit, which are expected to be settled after one year[151]. Cash Flow and Financing - The net cash used in operating activities for the six months ended December 31, 2023, was MYR (6,851) thousand, compared to MYR (3,608) thousand in the same period last year[186]. - The cash and cash equivalents at the end of the period were MYR 74,958 thousand, a decrease from MYR 84,482 thousand at the end of the previous year[186]. - The board assessed that the funding and capital requirements for two recently awarded contracts over the next twelve months would be approximately 22.5 million Ringgit, indicating a need for new bank financing to meet these requirements[68]. - The company anticipates that new bank financing may be required to meet funding and capital needs for new contracts, subject to bank approval and collateral requirements[67]. Contracts and Business Development - The company secured a contract for land reclamation and mixed development projects in Mukim, with a total contract value exceeding 300 million MYR[32]. - The group has secured new contracts since July 2023, including a modern 5-story courthouse and related infrastructure contracts in Johor, with a total contract value of approximately 512.4 million Malaysian Ringgit[52]. - The company has secured building and infrastructure contracts worth approximately 145.9 million MYR and reclamation-related contracts worth about 366.5 million MYR, with work expected to commence in March 2024[64]. - The company has submitted four tenders and one engineering proposal, with a total expected contract value of approximately 1,130.4 million MYR, but results are still pending[64]. Corporate Governance and Shareholding - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange's listing rules during the reporting period[71]. - As of December 31, 2023, the board members and senior executives held significant stakes in the company, with the largest shareholder controlling approximately 71.10% of the issued share capital[78]. - The largest shareholder, Datuk Wong Shih Biao, holds 181,816,500 shares, representing about 36.36% of the total issued share capital[78]. - The board of directors includes both executive and non-executive members, ensuring a diverse governance structure[90]. Employee and Operational Insights - The group has a total of 59 full-time employees as of December 31, 2023, an increase from 55 employees as of June 30, 2023[50]. - The group maintains a conservative outlook on its recent business and financial performance due to competitive pressures, inflation, labor shortages, and rising interest rates impacting capital costs[52]. - The group continues to monitor uncertainties and market developments while optimizing its business model and actively participating in various tenders to strengthen market competitiveness[54]. Risk Management - The group continues to monitor credit risk associated with trade and other receivables, implementing credit policies to mitigate potential losses[29]. - The group believes that the credit risk of other receivables and deposits has not significantly increased since initial recognition[39]. - The group does not currently have a foreign exchange hedging policy but closely monitors foreign exchange risks and maintains them at acceptable levels[43].
JBB Builders(01903) - 2024 - 中期财报