Financial Performance - Revenue for the six months ended June 30, 2024, decreased by 2.1% to approximately MYR 471.8 million from MYR 481.7 million in the same period last year[8]. - Gross profit for the same period was MYR 55.5 million, with a gross margin of 11.8%, down from 12.1% in the previous year[5][9]. - Pre-tax profit decreased to MYR 18.7 million from MYR 23.7 million, representing a decline of approximately 21.2%[5]. - Net profit for the period was MYR 14.3 million, compared to MYR 16.5 million in the previous year, reflecting a decrease of about 13.2%[5]. - Other income fell by 68.1% to approximately MYR 1.1 million, primarily due to the absence of foreign exchange gains[10]. - The group recorded a profit of approximately 14.3 million MYR for the current period, down from 16.5 million MYR in the same period last year, with a net profit margin decreasing from 3.4% to 3.0% due to a decline in gross profit margin[15]. - The company reported a profit of 16,450 thousand MYR for the six months ended June 30, 2024, compared to 23,662 thousand MYR for the same period in 2023, reflecting a decrease of approximately 30.4%[40]. - The group reported a pre-tax profit of 14,283 thousand MYR for the six months ended June 30, 2024, compared to 16,450 thousand MYR for the same period in 2023, reflecting a decline of 13.3%[56]. - Total comprehensive income for the period was 17,450 thousand MYR, which includes a profit of 14,283 thousand MYR and other comprehensive losses of 3,167 thousand MYR[39]. Expenses and Costs - Selling and distribution expenses decreased by 9.0% to approximately MYR 24.2 million, attributed to improved warehouse maintenance and reduced reliance on third-party logistics[11]. - Administrative and other operating expenses increased by 25.2% to approximately MYR 12.9 million, mainly due to higher employee costs and foreign exchange losses[12]. - Financing costs decreased by 33.3% to approximately MYR 0.8 million, due to reduced usage of bank acceptance financing[13]. - Tax expenses decreased by 38.9% to approximately MYR 4.4 million, primarily due to a reduction in pre-tax profits[14]. - Financing costs decreased to 839 thousand MYR from 1,259 thousand MYR year-over-year, indicating improved cost management[37]. Assets and Liabilities - As of June 30, 2024, the group's net current assets were approximately 207.0 million MYR, an increase from 189.3 million MYR as of December 31, 2023[18]. - The group's cash and cash equivalents as of June 30, 2024, were approximately 27.9 million MYR, down from 45.2 million MYR as of December 31, 2023[18]. - The group's bank borrowings amounted to approximately 37.2 million MYR as of June 30, 2024, with a weighted average effective interest rate of about 4.0%[18]. - The group's debt-to-equity ratio was approximately 16.7% as of June 30, 2024, down from 24.1% as of December 31, 2023, primarily due to an increase in equity and a decrease in bank financing[19]. - Total assets less current liabilities amounted to 269,790 thousand MYR as of June 30, 2024, an increase from 254,684 thousand MYR at the end of 2023[38]. - The company's net asset value increased to 244,975 thousand MYR as of June 30, 2024, compared to 227,525 thousand MYR at the end of 2023[38]. - The company's total liabilities decreased to 164,620 thousand MYR as of June 30, 2024, from 136,923 thousand MYR as of January 1, 2023, showing a reduction of about 20.2%[39]. Investments and Future Plans - The company plans to continue leveraging its industry knowledge to expand core strengths and explore new business opportunities while implementing prudent cost control measures[7]. - The group plans to enhance distribution and sales capabilities with an allocation of 50.3 million HKD for the year ending December 2024[16]. - The group is in the preliminary stages of purchasing land and constructing a warehouse in Klang, Selangor, which has delayed the utilization of funds[16]. - The company acquired an industrial land parcel in Penang, Malaysia, for 11.86 million MYR (approximately 19.69 million HKD) through its wholly-owned subsidiary[34]. Corporate Governance - The company has complied with the corporate governance code, except for the roles of Chairman and CEO being held by the same individual, Soon See Beng, who is considered the best candidate for the position[24]. - The audit committee, established on July 14, 2022, consists of three independent non-executive directors and is responsible for reviewing and supervising the group's financial reporting procedures[25]. - The company emphasizes the importance of the company secretary's role in governance matters, appointing Yang Guangwei as the external service provider for this position[24]. - The board consists of three executive directors and four independent non-executive directors, ensuring a balance of power and authority[24]. Shareholder Information - Soon See Beng, Soon Chiew Ang, and Soon See Long each hold 723,000,000 shares, representing 72.29% of the company's equity[27]. - The shares are held by Soon Holdings Limited, with ownership distributed as 70% to Soon See Beng, and 10% each to Soon Chiew Ang, Soon See Long, and Soon Lee Shiang[28]. - The beneficial ownership of 723,000,000 shares is also reported for several spouses of the directors, indicating a significant concentration of ownership[30]. - The company has not disclosed any other interests or short positions held by directors or key executives in the company or any associated corporations[29]. Employee and Labor Relations - The group employed 895 full-time employees in Malaysia as of June 30, 2024, and maintained good relations with employees without any major labor disputes[20]. Cash Flow and Financing Activities - Operating cash flow for the six months ended June 30, 2024, was 16,768 thousand MYR, down from 21,279 thousand MYR in the previous year, indicating a decline of about 21.8%[40]. - The company experienced a net cash outflow from investing activities of 19,245 thousand MYR for the six months ended June 30, 2024, compared to a net inflow of 5,170 thousand MYR in 2023[41]. - The company raised 12,645 thousand MYR in new borrowings during the financing activities, an increase from 9,450 thousand MYR in the previous year[41]. - Cash and cash equivalents decreased to 27,942 thousand MYR as of June 30, 2024, down from 38,025 thousand MYR at the same time in 2023, representing a decline of approximately 26.5%[41]. Inventory and Receivables - As of June 30, 2024, the company's inventory amounted to 90,894,000 MYR, an increase of 3.3% from 87,938,000 MYR as of December 31, 2023[71]. - Trade receivables from third parties increased to 133,526,000 MYR as of June 30, 2024, up from 120,617,000 MYR as of December 31, 2023, representing a growth of 10.7%[73]. - The company's trade payables to third parties rose to 69,071,000 MYR as of June 30, 2024, compared to 52,337,000 MYR as of December 31, 2023, reflecting a significant increase of 31.9%[79]. - Trade receivables aged within 30 days increased significantly to 113,532,000 MYR as of June 30, 2024, compared to 63,635,000 MYR as of December 31, 2023, indicating improved collection efficiency[75]. - The total trade and other receivables reached 145,128,000 MYR as of June 30, 2024, compared to 127,716,000 MYR as of December 31, 2023, marking an increase of 13.6%[74]. Lease and Asset Management - The total carrying value of property, plant, and equipment was 39,172 thousand MYR, a decrease from 41,693 thousand MYR as of December 31, 2023[60]. - The company reported a total cost of 73,880 thousand MYR for property, plant, and equipment as of June 30, 2024, compared to 68,595 thousand MYR as of December 31, 2023[60]. - The total net value of right-of-use assets as of June 30, 2024, was 21,132 thousand MYR, slightly up from 21,113 thousand MYR as of December 31, 2023[65]. - The company has committed short-term lease or low-value asset lease obligations of approximately 74,000 MYR as of June 30, 2024, compared to 32,000 MYR as of December 31, 2023[68]. - The carrying value of leasehold land as of June 30, 2024, was approximately 13,862 thousand MYR, down from 14,852 thousand MYR as of December 31, 2023[67]. - The company reported a total accumulated depreciation of 32,187 thousand MYR for property, plant, and equipment as of June 30, 2024[60]. - The company has pledged leasehold land and buildings with a carrying value of 14,058 thousand MYR for bank financing as of June 30, 2024[61]. Taxation and Deferred Tax - The total tax expense for the six months ended June 30, 2024, was 4,377 thousand MYR, down from 7,212 thousand MYR in the same period of 2023, indicating a reduction of 39.5%[54]. - Deferred tax assets were reported at 2,459,000 MYR as of June 30, 2024, slightly down from 2,542,000 MYR as of December 31, 2023[85]. - The total deferred tax liabilities decreased from 1,166,000 MYR as of December 31, 2023, to 882,000 MYR as of June 30, 2024, reflecting a reduction of approximately 24.5%[85].
双财庄(02321) - 2024 - 中期财报