Financial Performance - The company's revenue for the fiscal year 2023 decreased by approximately 4.1% to MYR 1.35 billion from MYR 1.4 billion in the previous fiscal year, primarily due to a drop in average selling prices of ferrous scrap metal [23]. - The net profit attributable to the company's owners surged to MYR 8.24 million in fiscal year 2023, a fivefold increase from MYR 1.48 million in fiscal year 2022, driven by improved procurement and operational efficiency [23]. - The sales volume of ferrous scrap metal reached 725,577 tons, an increase of about 7.5% compared to 675,062 tons in fiscal year 2022, which helped mitigate the revenue decline [23]. - The group’s gross profit increased from 52.33 million MYR in FY2022 to 77.08 million MYR in FY2023, representing a growth of 47.3% due to higher sales of ferrous scrap and reduced procurement costs [80]. - The company achieved a post-tax profit of 8.24 million MYR in fiscal year 2023, a significant increase of approximately 459% from 1.48 million MYR in fiscal year 2022 [74]. - The revenue breakdown for fiscal year 2023 shows that black scrap metal accounted for 93.4% of total revenue, compared to 92.8% in fiscal year 2022 [79]. Assets and Liabilities - Total assets increased to MYR 382.1 million in fiscal year 2023, up from MYR 278.5 million in fiscal year 2022 [8]. - Total liabilities rose significantly to MYR 169.5 million in fiscal year 2023, compared to MYR 74.7 million in fiscal year 2022 [8]. - Total borrowings increased to 98.4 million MYR in FY2023 from 52.3 million MYR in FY2022, primarily used for procurement and capital expenditures [92]. - The current ratio decreased from 3.5 times in FY2022 to 2.0 times in FY2023, while the debt-to-equity ratio increased from 0.27 times to 0.48 times [89]. Corporate Governance - The company has a strong board of directors with diverse backgrounds in finance, accounting, and corporate governance, enhancing its strategic decision-making capabilities [56]. - The board consists of eight members, with three independent non-executive directors, representing one-third of the board [113]. - The company has adopted a board diversity policy, considering various factors such as gender, age, and professional experience in board member selection [112]. - The company has maintained a strong focus on corporate governance to enhance shareholder value and accountability [104]. - The roles of chairman and CEO are held by Sia Kok Chin, which deviates from the corporate governance code, but the board believes this arrangement benefits the group's management [124]. Environmental, Social, and Governance (ESG) Initiatives - The company will continue to focus on environmental, social, and governance (ESG) matters to enhance its sustainable value [24]. - Heng Hup Holdings reported its sixth ESG report, highlighting sustainability measures and stakeholder concerns for 2023 [167]. - The report period covers January 1, 2023, to December 31, 2023, focusing on the environmental and social impacts of the group's operations in Malaysia [168]. - The company aims to minimize negative impacts on the environment and natural resources during operations, ensuring a balance between business development and environmental protection [181]. - The company encourages employee participation in environmental activities to enhance awareness and commitment to sustainability [194]. Operational Efficiency and Market Position - The company plans to focus on optimizing operational efficiency to maintain its market leadership in the Malaysian black scrap metal trade amid ongoing industry challenges [75]. - The company expanded its geographical coverage by establishing a new waste yard in Kedah, enhancing its market position in northern Malaysia [74]. - The company entered the steel slag recycling and iron ore trading business through two new subsidiaries, which contributed to higher profit margins, particularly in iron ore trading [74]. Shareholder Communication - The company emphasizes effective communication with shareholders, providing opportunities for direct interaction during the annual general meeting [156]. - The company has adopted a shareholder communication policy to enhance relationships and ensure timely disclosure of information [158]. - The company ensures that all resolutions at the annual general meeting are voted on independently, with results published promptly [159].
兴合控股(01891) - 2023 - 年度财报