Financial Performance - Total revenue for the fiscal year ended December 31, 2023, was approximately MYR 117.8 million, a decrease of about 12.2% from MYR 134.2 million in the previous fiscal year[12]. - The group's net profit after tax slightly decreased to approximately MYR 11.0 million, down about 2.7% from MYR 11.3 million in the previous fiscal year[13]. - Manufacturing revenue decreased by approximately 9.0% to MYR 34.3 million from MYR 37.7 million in the previous fiscal year, primarily due to reduced demand for vitamin and mineral premixes[20]. - Distribution revenue fell by approximately 13.4% to MYR 83.5 million from MYR 96.4 million in the previous fiscal year, attributed to intense market competition leading to decreased demand for animal feed and human food ingredients[21]. - The group's sales cost for the fiscal year ended December 31, 2023, was approximately 90,578 thousand MYR, a decrease from 101,061 thousand MYR in the previous year, with inventory costs accounting for 98.8% of total sales costs[22]. - Gross profit decreased from approximately 32.0 million MYR in the fiscal year ended December 31, 2022, to about 26.1 million MYR in 2023, representing a decline of approximately 18.4%, with the gross margin dropping from about 23.8% to approximately 22.2%[23]. - Other income increased from a loss of approximately 2.3 million MYR in the previous fiscal year to an income of about 3.7 million MYR, primarily due to increased bank interest income and fair value gains on other investments[24]. - Administrative and other operating expenses rose by approximately 2.4 million MYR or 22.6% to about 13.0 million MYR, mainly due to expenses incurred by a subsidiary in Hainan, China[25]. - The group's profit for the fiscal year ended December 31, 2023, was approximately 11.0 million MYR, slightly down from 11.3 million MYR in the previous year, with earnings per share at approximately 2.42 sen compared to 2.40 sen[28]. - The effective tax rate decreased from approximately 31.9% in the previous year to about 26.7% in 2023, primarily due to a reduction in non-deductible expenses[27]. - The group's cash and cash equivalents amounted to approximately 56.4 million MYR, an increase from 43.9 million MYR in the previous year[33]. Economic Outlook - The outlook for 2024 remains cautious due to expected ongoing economic turbulence and geopolitical conflicts affecting Malaysia's major trading partners[15]. - The company will continue to monitor its cost structure to mitigate adverse impacts from the ongoing global economic challenges[15]. - The global economic environment remains challenging, impacting the company's growth prospects and operational activities, particularly in the manufacturing segment[51]. - The company is closely monitoring the global economy to assess the appropriate timing for utilizing the unutilized net proceeds[51]. Business Strategy and Opportunities - The company aims to explore potential business opportunities both domestically and internationally with a cautiously optimistic approach[15]. - The company plans to employ more labor, with MYR 3.0 million allocated for this purpose, of which MYR 1.0 million has been utilized[49]. - The company is actively exploring suitable business and investment opportunities based on the planned use of the unutilized net proceeds[51]. - The company has no significant investment or capital asset plans for the coming year beyond those disclosed in the annual report[40]. Employee and Labor Information - The total employee cost for the fiscal year was approximately MYR 6.3 million, compared to MYR 5.9 million in the previous year[45]. - As of December 31, 2023, the company had 54 employees, an increase from 52 employees in 2022[45]. - Employee turnover rate was 3.8% for those under 30 years old, 7.1% for those aged 30 to 50, and 14.3% for those over 50[93]. - In the fiscal year 2023, a total of 26 employees participated in training, with an average of 14 hours of training per employee[98]. - The percentage of trained employees was 35% male and 65% female, with 19% from senior management and 81% from middle management[99]. - The average training hours completed were 15.17 for males and 13.94 for females, with senior management averaging 18.90 hours and middle management 13.29 hours[100]. - The company maintained a zero fatality rate in the workplace for the fiscal year 2023, with no work-related injuries resulting in lost workdays[97]. - The company has implemented various employee incentive measures to foster a high-performance culture[90]. Environmental, Social, and Governance (ESG) Initiatives - The company has established an ESG working group to coordinate and implement sustainable development strategies, with a focus on risk management to mitigate potential financial or reputational damage[68]. - The ESG report for the fiscal year 2023 covers the group's operations in Malaysia and is based on statistical reports and documents from the previous year[70]. - The company reported no violations of laws and regulations in Malaysia during the fiscal year 2023, indicating a strong compliance record[68]. - The total greenhouse gas emissions for the fiscal year 2023 amounted to 522.6 tons of CO2 equivalent, an increase from 500.9 tons in 2022, representing a growth of approximately 4.0%[78]. - Water usage decreased significantly to 2,460 cubic meters in 2023 from 4,195 cubic meters in 2022, a reduction of approximately 41.3%[83]. - The company has implemented waste management principles focusing on reduction, reuse, and recycling, with ongoing monitoring of waste generation[81]. - The company is committed to reducing its carbon footprint and has implemented energy-saving policies in its offices[88]. - The company has established a supplier base with 420 suppliers, including 157 local suppliers in Malaysia and 263 international suppliers across Europe, North America, Asia (excluding Malaysia), Australia, and others[102]. Corporate Governance - The company has adopted the corporate governance framework to ensure compliance with good governance practices and stakeholder expectations[111]. - The board of directors is responsible for overseeing the company's business and overall performance management, ensuring necessary financial and human resources support[115]. - The company has established an audit committee, a remuneration committee, and a nomination committee to ensure compliance with listing rules and effective governance[116]. - The board consists of six directors, including three independent non-executive directors, meeting the requirement of at least one-third independence[126]. - The company has implemented mechanisms to ensure the board receives independent opinions and advice, which are reviewed annually for effectiveness[127]. - The company has established a whistleblowing policy to encourage reporting of unethical behavior without fear of retaliation, reinforcing its commitment to integrity[108]. Shareholder Information - The board did not recommend a final dividend for the fiscal year, consistent with the previous year[31]. - The company’s dividend policy is discretionary and subject to the board's assessment of operational performance and cash position[168]. - Shareholders can propose resolutions for the annual general meeting by submitting written notice to the company secretary[163]. - The company held its annual general meeting on June 19, 2023, with full attendance from all directors[138]. Risk Management - The company has established a risk management policy to address various risks, including national, regulatory, operational, and ESG risks[154][156]. - The company has identified key risks including animal disease outbreaks and supply chain disruptions that could adversely affect financial performance[42]. - An independent internal control consultant was hired to review the financial procedures and internal control systems, confirming their effectiveness[155].
利特米(01936) - 2023 - 年度财报