Financial Performance - The company's revenue increased by approximately RM 96.0 million or 11.5% from RM 835.9 million in 2022 to RM 931.9 million in 2023[20] - The net profit for the year was approximately RM 27.1 million, compared to RM 26.8 million in 2022[21] - The company reported a gross profit of RM 110.3 million in 2023, slightly down from RM 111.6 million in 2022[17] - Gross profit margin decreased to approximately 11.8% from about 13.4% in the previous year, primarily due to competitive pricing strategies and inflationary pressures[27] - Other income rose by approximately 3.4 million MYR or 103.0% to about 6.7 million MYR, mainly due to the recovery of previously provided for trade receivables and interest income from fixed deposits[28] - Selling and distribution expenses increased by approximately 5.1 million MYR or 10.7% to about 52.8 million MYR, driven by rising salaries and increased vehicle maintenance costs due to revenue growth[29] - Administrative and other operating expenses increased by approximately 5.9 million MYR or 30.9% to about 25.0 million MYR, mainly due to professional fees and provisions for bad debts following the IPO[30] - Financing costs rose by approximately 0.8 million MYR or 53.3% to about 2.3 million MYR, attributed to increased interest rates and short-term borrowings[31] - Net profit for the reporting period was approximately 27.1 million MYR, with a net profit margin decreasing to 2.9% from 3.2% in the previous year[34] Assets and Liabilities - The total assets decreased from RM 369.1 million in 2022 to RM 349.1 million in 2023[17] - The total liabilities decreased from RM 156.2 million in 2022 to RM 121.5 million in 2023[17] - As of December 31, 2023, the company's current assets net value was approximately 189.3 million MYR, an increase from about 169.5 million MYR in the previous year[40] - The debt-to-equity ratio as of December 31, 2023, was approximately 24.1%, a decrease from 35.0% as of December 31, 2022, primarily due to an increase in the equity base[42] - As of December 31, 2023, the bank borrowings amounted to approximately RM 49.7 million, with a weighted average effective annual interest rate of about 4.00%[41] - The total available bank financing as of December 31, 2023, was approximately RM 122.8 million, of which RM 34.0 million was utilized and RM 88.8 million remained unutilized[41] Business Expansion and Strategy - The company plans to actively expand its business by purchasing new warehouses and seeking new suppliers[21] - The company aims to expand its private label products into Indonesia and China[21] - The company has obtained new distribution rights for dairy products in Northern Peninsula Malaysia and for sauces and condiments in Eastern Peninsula Malaysia[20] - The company distributes a wide range of products, including over 200 well-known international and domestic brands[23] - The company emphasizes strategic acquisitions and investments to enhance inventory capabilities[21] - The company continues to implement strategies to enhance market penetration in various regions to reduce reliance on specific markets[175] Human Resources - The group employed 840 full-time employees in Malaysia as of December 31, 2023, compared to 779 employees as of December 31, 2022[43] - The group did not encounter any significant issues in employee recruitment or retention during the reporting period[43] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with applicable governance provisions[76] - The board consists of seven members, including three executive directors and four independent non-executive directors[87] - The company held a total of five board meetings during the reporting period, with all executive directors attending all meetings[96] - The company has established a mechanism to ensure the board receives independent opinions and information, which is reviewed annually[85] - The company has complied with listing rules regarding the appointment of independent non-executive directors, with at least one possessing appropriate professional qualifications[84] - The chairman and CEO roles are currently held by Soon See Beng, who is considered the best candidate for these positions[93] - The company has implemented a standard code of conduct for directors' securities transactions, confirming compliance during the reporting period[79] - The board is responsible for strategy, business development, risk management, and compliance, among other duties[81] - The company has arranged appropriate liability insurance for directors concerning legal proceedings[86] - The board's composition reflects independence, with independent non-executive directors making up at least one-third of the board[84] - The company has a robust internal control system and regularly reviews management performance and functions[83] Risk Management - The board has established a risk management framework aimed at minimizing risks rather than eliminating them entirely[150] - The risk management framework consists of five elements: internal environment monitoring, risk management, control activities, information and communication, and monitoring and improvement[151] - Identified risks are analyzed and assessed using established risk assessment criteria, which include both qualitative and quantitative techniques[154] - The annual risk assessment results indicate that significant risks identified during the reporting period showed limited variation in nature and extent[154] - The board reviewed the effectiveness of the risk management and internal control systems for the year ending December 31, 2023, and found them to be effective and adequate[156] - The internal control consultant will conduct an annual review of the internal control system's adequacy and effectiveness, reporting findings to the audit committee[155] Shareholder Communication and Dividends - The company has established multiple communication channels with shareholders to ensure timely and non-selective disclosure of information[165] - The board will consider various factors, including financial performance and cash flow, when proposing dividends to shareholders[143] - The company has no predetermined dividend payout ratio, and the declaration and payment of dividends are at the board's discretion[145] - The company is committed to maintaining sufficient reserves for future development while providing returns to shareholders[142] - A special dividend of HKD 0.023 per ordinary share was paid on June 30, 2023, totaling HKD 23,003,450 (approximately MYR 13,702,000)[146] - No final dividend was recommended for the reporting period, consistent with the previous year[147] Compliance and Training - The company has established procedures for handling and communicating insider information, ensuring timely and consistent disclosure[158] - Anti-bribery and anti-corruption training is provided to all managerial staff, covering topics such as integrity, confidentiality, and conflicts of interest[162] - The audit committee is responsible for overseeing the whistleblowing policy and has delegated daily responsibilities to the Chief Financial Officer[161] - The company has implemented a whistleblowing policy to encourage employees to report potential misconduct, with all reports treated confidentially[161] Appointments and Board Diversity - The company appointed Tan Teow Choon as an independent non-executive director in July 2022, who has extensive experience in strategic planning and business operations[61] - Ooi Guan Hoe was appointed as the Chief Financial Officer in June 2023, responsible for the company's financial functions and human resources[68] - Teh Mun Ning joined the company as Sales Director in September 2023, bringing over 30 years of business development and marketing experience[71] - The board currently consists of seven members, including one female director, reflecting a commitment to diversity[120] - The Nomination Committee is responsible for reviewing the board's structure, size, composition, and diversity at least annually[117] - The board has adopted a diversity policy that considers various factors such as skills, industry experience, and gender when appointing directors[120] - The company aims to gradually increase the proportion of female members in the board and senior management as suitable candidates are identified[120]
双财庄(02321) - 2023 - 年度财报