Financial Performance - The company reported a significant revenue increase of approximately 26.7%, rising from 1.35 billion MYR in the previous fiscal year to 1.71 billion MYR in the fiscal year ending December 31, 2024[21]. - The company's profit before tax surged to 32.86 million MYR, nearly tripling from 8.54 million MYR in the previous fiscal year[21]. - The gross profit for the fiscal year 2024 was reported at 125.96 million MYR, showing a substantial improvement from 77.08 million MYR in the previous year[9]. - The company achieved a post-tax profit of 21.54 million MYR in fiscal year 2024, a significant increase of approximately 161% from 8.24 million MYR in fiscal year 2023[65]. - The profit attributable to the owners of the company for the fiscal year 2024 is 25.46 million MYR, an increase from 8.54 million MYR in 2023[76]. - The total equity attributable to the owners of the company as of December 31, 2024, is 238.44 million MYR, up from 213.30 million MYR in 2023[79]. - The current ratio improved to 2.3 times in 2024 from 2.0 times in 2023, indicating better liquidity[78]. - The debt-to-equity ratio decreased to 0.35 times in 2024 from 0.48 times in 2023, reflecting reduced borrowings[79]. - The total borrowings as of December 31, 2024, are 76.93 million MYR, down from 98.40 million MYR in 2023[79]. Sales and Production - The total sales volume of ferrous scrap metal reached 949,634 tons, an increase of about 30.9% compared to 725,577 tons in the previous fiscal year[21]. - In the fiscal year 2023, the company sold 725,577 tons of black scrap metal, accounting for 93.4% of total revenue, and is projected to sell 949,634 tons in fiscal year 2024, accounting for 93.2% of total revenue[26]. - The average trading price of black scrap metal decreased by approximately 4.6% from 1,711 MYR per ton in fiscal year 2023 to 1,633 MYR per ton in fiscal year 2024[64]. Operational Efficiency - The company operates multiple scrap yards across Malaysia, covering approximately 61,000 square meters, strategically located to ensure a steady supply of ferrous scrap metal[25]. - The company has a fleet of 95 owned trucks, with 59 trucks having a capacity of 20 tons or more, enabling efficient logistics support for suppliers[25]. - The company remains focused on optimizing procurement strategies and improving operational efficiency to ensure sustainable profit growth[65]. Environmental and Social Responsibility - The company aims to enhance its focus on environmental management, social responsibility, and good governance in response to increasing awareness of sustainable practices[22]. - The company has implemented various energy-saving measures to minimize its carbon footprint and is committed to achieving net-zero emissions in the future[192]. - The company encourages employees to participate in environmental activities to raise awareness about sustainability[184]. - The company has established a waste recycling program, including the collection of paper, metals, and plastics, to enhance waste reuse[181]. - The company is actively monitoring and managing climate-related risks as part of its governance and strategic planning[193]. Governance and Board Structure - The board consists of five executive directors and three independent non-executive directors, with a gender ratio of 7:1 among employees as of December 31, 2024[100]. - The company has fully complied with the corporate governance code, except for the deviation regarding the roles of the chairman and CEO, which are held by Sia Kok Chin since 2001[92]. - The board has established three committees: Audit and Risk Management Committee, Remuneration Committee, and Nomination Committee to oversee specific areas of the company's affairs[95]. - The company emphasizes the importance of independent directors in providing oversight and strategic guidance[51]. - The board will review and consider separating the roles of chairman and CEO at an appropriate time[92]. Risk Management - The company emphasizes the importance of regular risk assessments and continuous improvement of safety protocols to manage risks in the scrap metal industry[22]. - The board is responsible for maintaining adequate risk management and internal control systems to protect shareholder investments and company assets[139]. - The company has implemented various internal control and risk management policies, including asset depreciation provision management and inventory management policies[139]. ESG Reporting - The company released its seventh ESG report, highlighting sustainability measures and stakeholder concerns for the year 2024[162]. - The report covers the period from January 1, 2024, to December 31, 2024, focusing on the environmental and social impacts of the company's operations in Malaysia[163]. - The board has identified 11 significant ESG-related issues for the reporting period, focusing on energy efficiency, environmental compliance, and corporate governance[171]. Emissions and Energy Consumption - Total greenhouse gas emissions reached 9,683.85 tons of CO2 equivalent in 2024, up from 4,041.07 tons in 2021, representing an increase of 139.5%[200]. - Scope 1 direct emissions from trucks increased to 8,232.39 tons in 2024, compared to 3,057.79 tons in 2021, marking a rise of 169.5%[200]. - Scope 2 indirect emissions from electricity rose to 1,451.46 tons in 2024, up from 983.28 tons in 2021, reflecting an increase of 47.5%[200]. - CO2 emissions per thousand Malaysian Ringgit revenue increased from 0.0028 in 2021 to 0.0057 in 2024, indicating a growth of 103.6%[200].
兴合控股(01891) - 2024 - 年度财报