Financial Performance - For the fiscal year ending December 31, 2023, the revenue from air freight services was approximately MYR 8.5 million, a decrease of about 69.4% compared to MYR 27.6 million in 2022[10]. - The air freight volume for exports was 2,057 thousand kilograms in 2023, down from 5,617 thousand kilograms in 2022, while imports decreased from 1,362 thousand kilograms to 1,063 thousand kilograms[11]. - The revenue from sea freight services was approximately MYR 16.7 million, a decrease of about 40.2% from MYR 27.9 million in 2022[13]. - The sea freight volume for exports was 4,362 standard containers in 2023, down from 5,472 in 2022, and imports decreased from 4,975 to 4,052 standard containers[14]. - The revenue from freight and related services was approximately MYR 1.3 million in 2023, compared to MYR 1.8 million in 2022[15]. - Total revenue from integrated logistics services decreased by approximately 53.9% to about 26.4 million MYR for the fiscal year ending December 31, 2023, compared to 57.4 million MYR in the previous year[31]. - The revenue from the sale of second-hand mobile phones was approximately 67.8 million MYR, accounting for about 58.2% of total revenue, with a pre-tax segment loss of approximately 5.8 million MYR[19]. - Revenue from the manufacturing and sale of plastic products was approximately 22.1 million MYR, down from 25.7 million MYR in the previous year[18]. - Revenue from logistics services in Hong Kong was approximately 0.06 million MYR, a decrease of 96.0% compared to 1.6 million MYR in the previous year, representing about 0.1% of total revenue[20]. - The company recorded a loss of approximately 20.4 million MYR for the fiscal year, compared to a loss of 12.6 million MYR in the previous year, resulting in a loss per share of 3.22 sen[45]. - The company's current assets net value decreased to approximately 26.9 million MYR from 36.9 million MYR in the previous year[49]. - The debt-to-equity ratio increased to approximately 19.8% from 14.5% in the previous year[49]. - The company reported total revenue of 116 million MYR for the year ending December 31, 2023, down from 135 million MYR in 2022, indicating a decrease of approximately 14.1%[184]. Market Strategy and Operations - The company aims to enhance its market position in Hong Kong despite facing intense competition in the logistics sector in Malaysia[8]. - The company is focused on providing comprehensive logistics solutions, including value-added services such as supply chain management and inventory reporting[8]. - The overall economic conditions in Malaysia have been adversely affected by the COVID-19 pandemic, impacting customer order volumes[13]. - The company is closely monitoring market conditions and making necessary adjustments to its strategies and operations[8]. - The company continues to explore opportunities for market expansion and new service offerings to adapt to changing consumer behaviors[8]. - The company plans to establish a joint venture with Shui Fa Hua Xia Group to develop multiple projects, with the company responsible for attracting investors and providing financial advice[21]. - The proposed joint venture with Sui Yong International aims to focus on investments in green energy and environmental protection, with a 51:49 equity ratio[25]. - The company intends to reallocate approximately 26.1 million HKD originally designated for expanding Hong Kong logistics services to general working capital and investment purposes[29]. - The company remains optimistic about the resilience of the industry and its own business stability, aiming to consolidate its position as a comprehensive logistics solution provider in Hong Kong and Malaysia[30]. - The company is focused on sustainable development and operational excellence while optimizing its asset and financial health[30]. - The board believes that the logistics and second-hand mobile phone businesses will expand the company's revenue base and improve capital efficiency[30]. Leadership and Governance - The company appointed Mr. Lee Guo Xi as Executive Director on May 21, 2019, responsible for overall strategic planning and management[73]. - Mr. Chen Jian Hao, appointed as Executive Director and CEO on September 10, 2021, has over 20 years of experience in finance and accounting[74]. - Independent Non-Executive Director Mr. Huang Zhaoqiang has over 30 years of experience in accounting and finance, and he resigned on June 16, 2023[75]. - Ms. Lee Li Ngut has been the Senior Vice President of Finance since March 1, 2016, managing the company's financial and accounting operations[80]. - Mr. Lee Cwen Wei, appointed as Sales Director on January 2, 2021, is responsible for increasing sales in local and international markets[82]. - The management team collectively brings over 100 years of experience in finance, accounting, and operational management[74][75][80][82][83]. - The company is committed to enhancing its strategic planning and operational efficiency through experienced leadership[73][74][80]. - The board of directors is responsible for overseeing the group's business affairs and overall performance, ensuring the necessary financial and human resources are in place to maximize shareholder value[87]. - The board held seven meetings during the fiscal year to discuss and approve the group's consolidated performance for various periods, including the year ended December 31, 2022, and the nine months ended September 30, 2023[99]. - The company has adopted a set of trading rules for directors regarding securities transactions, confirming compliance throughout the fiscal year[86]. - The board comprises five directors, including three independent non-executive directors, ensuring a balanced composition for independent judgment[92]. - The company has established insurance arrangements to provide appropriate protection for directors facing legal liabilities[95]. - The board is tasked with formulating and monitoring the group's corporate governance practices and financial controls, as well as reviewing their effectiveness[96]. - Each newly appointed director receives a comprehensive orientation to understand the company's operations and their responsibilities under various regulations[98]. - The company encourages all directors to participate in relevant training courses, with costs covered by the company, to enhance their professional development[98]. - The board's meetings are scheduled to occur quarterly, with at least 14 days' notice provided to directors for regular meetings[99]. - The board consists of approximately 60% male and 40% female members, reflecting a commitment to gender diversity[102]. Risk Management and Compliance - The company has implemented disaster recovery plans covering critical application analysis and external server backups to mitigate risks associated with IT dependency[62]. - The company is monitoring foreign currency risks, particularly with USD and EUR, and may consider hedging activities to mitigate exchange rate fluctuations[65]. - The company has taken risk management measures, including GPS tracking and insurance for cargo loss and damage, to address the inherent risks in logistics services[58]. - The company anticipates passing on increased freight and transportation costs to customers to mitigate the impact of rising operational costs[60]. - The company has established procedures for handling and disclosing inside information in compliance with GEM listing rules[145]. - The company has established a comprehensive internal control and risk management system to ensure effective and efficient operations, reliable financial reporting, and compliance with applicable laws and regulations[136]. - The board reviews the risk management and internal control systems at least annually to ensure their effectiveness[139]. - The company has implemented a series of internal control policies and procedures aimed at identifying, assessing, and managing significant risks[138]. - An independent internal control consultant was hired to review the internal control and risk management functions during the fiscal year[143]. Environmental, Social, and Governance (ESG) - The company is committed to sustainable development and has implemented initiatives in environmental, social, and governance (ESG) aspects, demonstrating its commitment to these principles[157]. - The ESG report covers operations in Malaysia, Vietnam, and Hong Kong, which are the primary revenue sources for the company[158]. - The report period for the ESG activities is for the year ending December 31, 2023[159]. - The board is responsible for overseeing sustainability opportunities and risks, ensuring that ESG initiatives align with growth strategies[165]. - The ESG working group, consisting of four members, assists in risk assessment and ensures effective policy implementation[168]. - The company aims to reduce its environmental impact by setting ESG-related goals and integrating sustainable development into its operations[168]. - The board regularly reviews the effectiveness of internal control mechanisms and the progress of set goals related to ESG[168]. - The company encourages stakeholders to provide feedback on its sustainability performance and disclosures[164]. - The company aims to reduce power consumption density, water usage density, non-hazardous waste density, and GHG emissions density by 5% by 2030, based on 2023 as the baseline year[177]. - The company has set a target for carbon neutrality by 2050 and is implementing measures to assess the effectiveness of its strategies against climate change[176]. - The company emphasizes compliance with environmental laws and regulations, including the 1974 Environmental Quality Act in Malaysia, to mitigate operational impacts[180]. - The company is committed to sustainable development and reducing its carbon footprint through various environmental policies and initiatives[175]. - The company has not reported any significant violations related to emissions or environmental regulations during the reporting period[175]. - Total GHG emissions decreased to 1,590.17 tons CO2 equivalent in 2023 from 1,810.23 tons in 2022, showing a reduction of approximately 12.1%[183]. - Direct GHG emissions (Scope 1) increased to 496.85 tons CO2 equivalent in 2023 from 472.20 tons in 2022, representing an increase of about 5.5%[183]. - Indirect GHG emissions (Scope 2) decreased to 1,093.33 tons CO2 equivalent in 2023 from 1,338.03 tons in 2022, a reduction of approximately 18.3%[183]. - Nitrogen oxides (NOx) emissions increased to 2,045.79 kg in 2023 from 1,824.77 kg in 2022, reflecting an increase of about 12.1%[181]. - Total non-hazardous waste decreased significantly to 3.94 tons in 2023 from 76.13 tons in 2022, representing a reduction of approximately 94.8%[188]. - Total hazardous waste generated was 0.10 tons in 2023, a substantial decrease from 7.14 tons in 2022, reflecting a reduction of about 98.6%[188]. - Total energy consumption decreased to 3,266 MWh in 2023 from 3,902 MWh in 2022, a reduction of approximately 16.3%[191]. - Water consumption increased to 6,594 cubic meters in 2023 from 1,966 cubic meters in 2022, representing a significant increase of about 235.5%[193]. - Packaging material consumption dropped to 18.52 tons in 2023 from 327 tons in 2022, a decrease of approximately 94.3%[195]. - The density of packaging material consumption improved to 0.15 tons per million revenue in 2023, down from 2.42 tons in 2022, indicating better resource management[195]. - Direct energy consumption from gasoline and diesel increased to 2,020 MWh in 2023 from 1,899 MWh in 2022, an increase of about 6.4%[191]. - Indirect energy consumption from purchased electricity decreased to 1,246 MWh in 2023 from 2,003 MWh in 2022, a reduction of approximately 37.9%[191]. - The company is actively exploring new business models to mitigate the operational costs and challenges posed by climate change[199].
盛良物流(08292) - 2023 - 年度财报